10-24-2009, 06:06 AM
By Ijaz Kakakhel
ISLAMABAD: The Audit General of Pakistan unearthed observations worth Rs 3.879 billion in its audit reports of Pakistan Telecommunication Authority (PTA), Frequency Allocation Board (FAB), National Radio Telecommunication Corporation (NTRC), National Telecommunication Corporation (NTC) and Special Communications Organisation (SCO).
According to the audit report for the year 2008-09, a copy of which is available with Daily Times, revealed that these observations were carried out on test check bases. The audit report revealed that the PTA management could not settle the issue of pay and allowances and other fringe benefits to the employees since 2004. Resultantly, irregular payments were made on account of pay and allowances, honorarium, cash reward, leave encashment and foreign TA/DA worth Rs 69.669 million. Its receivables management remained a weak area, which resulted in non-recovery of huge amount of Rs 1.008 billion from various telecom/mobile operators. The PTA incurred irregular expenditure on purchase of vehicles and laptops worth Rs 13.979 million. The instances of misappropriation and misuse of public money were also observed worth Rs 82.307 million which showed the inability of management to avert losses and frauds, the report showed.
The report further said that the Frequency Allocation Board (FAB) was preparing only its “receipt and expenditure account”. It made irregular payments on account of pay and allowances, leave encashment and house rent allowance despite approval of its pay package. The foreign TA/DA was also paid without approval of finance division worth Rs 25.595 million. The FAB also incurred irregular expenditure on purchase of vehicles worth Rs 1.628 million.
According to the audit report for the Year 2008-09, the NRTC management incurred irregular expenditure on purchase of vehicles worth Rs 2.617 million. It was not adhering to the public procurement rules, which resulted into irregular procurements worth Rs 7.187 million. The government exchequer sustained a loss due to non-deduction of income tax and sales tax worth Rs 1.089 million.
The Audit Report further revealed that the NTC incurred irregular expenditure of Rs 18.925 million in violation of the public procurement rules. Stores amounting to Rs 39.668 million were purchased un-necessarily resulting in blockage of public money. It could not recover an amount of Rs 20.532 million from different agencies and made irregular payments on account of cash reward Rs 8.98 million without obtaining approval of the finance division.
The SCO management made unauthorised re-appropriation of funds of Rs 1.100 billion without approval of the finance division. Audit outcomes of the report revealed that the management of these organisations was sensitised with the importance of effective internal control system. Audit also achieved efficiency gains by convincing the management to approach competent forums for the approval of their pay packages and service regulations. Audit also made positive contribution in recovery of long outstanding receivables appearing in the books of these organizations resulting in increase of government receipts. The audit recommends that the principal accounting officers and management of these organisations might take effective measures to exercise due diligence and adherence to generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) while maintaining the books of accounts. The report also recommended to evolve and implement a system of Internal Audit and Internal Controls, ensure timely and efficient receivables management. It also recommended to introduced effective systems of stores and inventory management.
http://www.dailytimes.com.pk/default.asp...2009_pg5_6
ISLAMABAD: The Audit General of Pakistan unearthed observations worth Rs 3.879 billion in its audit reports of Pakistan Telecommunication Authority (PTA), Frequency Allocation Board (FAB), National Radio Telecommunication Corporation (NTRC), National Telecommunication Corporation (NTC) and Special Communications Organisation (SCO).
According to the audit report for the year 2008-09, a copy of which is available with Daily Times, revealed that these observations were carried out on test check bases. The audit report revealed that the PTA management could not settle the issue of pay and allowances and other fringe benefits to the employees since 2004. Resultantly, irregular payments were made on account of pay and allowances, honorarium, cash reward, leave encashment and foreign TA/DA worth Rs 69.669 million. Its receivables management remained a weak area, which resulted in non-recovery of huge amount of Rs 1.008 billion from various telecom/mobile operators. The PTA incurred irregular expenditure on purchase of vehicles and laptops worth Rs 13.979 million. The instances of misappropriation and misuse of public money were also observed worth Rs 82.307 million which showed the inability of management to avert losses and frauds, the report showed.
The report further said that the Frequency Allocation Board (FAB) was preparing only its “receipt and expenditure account”. It made irregular payments on account of pay and allowances, leave encashment and house rent allowance despite approval of its pay package. The foreign TA/DA was also paid without approval of finance division worth Rs 25.595 million. The FAB also incurred irregular expenditure on purchase of vehicles worth Rs 1.628 million.
According to the audit report for the Year 2008-09, the NRTC management incurred irregular expenditure on purchase of vehicles worth Rs 2.617 million. It was not adhering to the public procurement rules, which resulted into irregular procurements worth Rs 7.187 million. The government exchequer sustained a loss due to non-deduction of income tax and sales tax worth Rs 1.089 million.
The Audit Report further revealed that the NTC incurred irregular expenditure of Rs 18.925 million in violation of the public procurement rules. Stores amounting to Rs 39.668 million were purchased un-necessarily resulting in blockage of public money. It could not recover an amount of Rs 20.532 million from different agencies and made irregular payments on account of cash reward Rs 8.98 million without obtaining approval of the finance division.
The SCO management made unauthorised re-appropriation of funds of Rs 1.100 billion without approval of the finance division. Audit outcomes of the report revealed that the management of these organisations was sensitised with the importance of effective internal control system. Audit also achieved efficiency gains by convincing the management to approach competent forums for the approval of their pay packages and service regulations. Audit also made positive contribution in recovery of long outstanding receivables appearing in the books of these organizations resulting in increase of government receipts. The audit recommends that the principal accounting officers and management of these organisations might take effective measures to exercise due diligence and adherence to generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) while maintaining the books of accounts. The report also recommended to evolve and implement a system of Internal Audit and Internal Controls, ensure timely and efficient receivables management. It also recommended to introduced effective systems of stores and inventory management.
http://www.dailytimes.com.pk/default.asp...2009_pg5_6