Originally Published at THENEWS!
Auditor-General Punjab’s report questions purchase of 30 vehicles and sale of aircraft and spares
ISLAMABAD: The audit report of the Services and General Administration Department (S&GA) of Punjab has raised objection on a sum of Rs614 million terming the expenses as budgetary and non-budgetary irregularities.
According to a copy of the Auditor General Punjab’s report available with The News, Rs147.47 million were related to budgetary matters while Rs466.83 million were related to the non-budgetary matters.
The S&GA spent Rs2.11 billion or 82 per cent of the budget allocation of Rs2.571 billion for the fiscal 2008-09. The audit team selected an amount of Rs517.45 million for audit, it said.
The audit report observed that a loss of Rs300 million was incurred due to change in the mode of insurance policy. The irregular auction of vehicles in the office of Additional Chief Secretary caused a loss of Rs166.83 million. Similarly, the report also observed that irregular purchase of 30 Toyota Corolla GLI in Additional Chief Secretary Office caused a loss of Rs41.97 million in violation of rules.
Out of thirty Toyota Corolla cars purchased during 2008-09, thirteen brand new cars were parked in a warehouse and the audit termed it unnecessary while an amount of Rs71.71 million were spent exceeding budget allocation, the report added.
It also observed that an aircraft was sold for $750,000 while the spare parts were sold for $100,000 at the office of Chief Pilot VIP Flight. The summary dated April 14, 2009 submitted to the Chief Minister observed at para 20(B) that the value of spare parts was approximately $200,000 while the same was sold at half the estimated price causing loss of Rs8.031 million to the government.
An expenditure of Rs3.8 million and Rs3.3 million incurred by Section Officer (Cabinet-II) for Cabinet-II Section and I&C Wing respectively was observed irregular as the rate of contract was approved by the Secretary (I&C) instead of Additional Chief Secretary, the advertisement was made only in one newspaper in violation of the advertisement policy; and the sanctions were split up to avoid sanctions of the higher authority, it said.
The audit also highlighted that an expenditure of Rs6.6 million on the repair of vehicle for the office of the Additional Chief Secretary S&GAD, Lahore were uneconomical while an amount of Rs3.967 million for entertainment charges were also irregular. The report further revealed that certain residences were being occupied by unauthorized officers/officials since long and recovery of penal rent was not being effected causing a loss of Rs2.863 million in the scrutiny of the office of the Additional Chief Secretary S&GAD and Section Officer (Welfare-IV, rent branch).
An amount of Rs2.79 million for purchase of furniture and other store and repair of furniture was held irregular and uneconomical as the same was split up to avoid sanction of the higher authority and system of open competitive tender, said the report.
It also observed that purchases were made and services were hired from various firms but income tax amounting to Rs119,379 and Rs124,422 was either not deducted or was less deducted by Section Officer (Cabinet-II) and Section Officer(Welfare-I) respectively.
An amount of Rs0.212 million was found to be unauthorized payment of additional flying allowance.
During audit of the office of the Additional Chief Secretary, S&GAD for the period 2008-09, as per list provided by Motor Transport Officer, two vehicles were stolen and no FIR was registered with Police in respect of vehicle No LXB 1924 and also loss was not communicated to government, it said.
The audit also pinpointed that some vehicles were possessed by the officers who have been transferred.