KARACHI, Jan 26: Serious financial irregularities, misappropriation of government funds and flaws in the working of the provincial food department were detected by the Public Accounts Committee of the Sindh Assembly here on Monday.

The irregularities were found when the PAC considered the draft paras for the financial year 2003-04 and the auditors’ report of 2004-05 of the provincial food department during its meeting presided over by its chairman, Jam Tamachi.

While refusing to verify any of the draft paras, the PAC directed the authorities concerned to issue show-cause notices to the negligent officers who were responsible for the losses incurred by the government.

The committee deferred its proceedings to mid-February and directed the provincial food secretary to come up with documentary evidence, if any, to support the verification of the accounts in the next meeting.

It was mentioned in some of the draft paras that during the year under review neither the procurement target of 600,000 metric tons of wheat was achieved nor the revised target of 570,000 metric tons was met as the actual procurement made during the year was only 179,268 metric tons i.e. 31.45 per cent of the revised target.

However, in the meeting of department accounts committee (DAC) held in Feb 2006 the department stated that the wheat procurement operation was on a voluntary basis and due to hoarding and sale of wheat by growers in open market.

The PAC chairman, Jam Tamachi, observed that the reason for not meeting the procurement target was a delay in establishment of the procurement centres followed by delays in providing bardana (jute bags) and making transportation arrangements. He blamed “commissions” for the delay.

In another para, purchase of bardana in excess was pointed out as during the year under review 179,268 metric tons of wheat was procured through the food department’s 13 district offices and 1,700 procurement centres and only 1.793 million bardana were utilised against the available stock of 5.250 million bardana. Thus 3.457 million bardana costing Rs174.595 million were lying unused in the district offices.

In the DAC meeting on Feb 25, 2006 the department claimed that bags were utilised without producing any record to the audit department for verification.

Likewise, in another para it was pointed out that during the year 2003-04 the budget grant for transportation was Rs185 million while the actual expenditure was Rs106.686 million, showing a saving of Rs78.314 million while liability during the year was Rs88.542 million.

The PAC questioned as to why the liability was not paid off despite the saving of Rs78.314 million.

The committee was informed that in Ghotki, Naushehroferoz, Jacobabad and Malir (Karachi) districts 27.170 metric tons of wheat worth Rs52.033 million was destroyed due to weevil infestation. The loss was caused by carelessness of the officials of the food department and substandard storage conditions. Despite the fact that the audit reports had pointed out insufficient storage conditions, no measures were taken to improve the storage facilities.

Other audit paras showed losses in the heads of misappropriation of wheat/bardana (Rs40.943 million), short receipt of wheat from growers (Rs 39.883 million), loss due to shortage of wheat (Rs11.953 million), non-maintenance of store accounts (Rs11.760 million), loss due to procurement of sub-standard wheat (Rs10.128 million), misappropriation of government money (Rs10.442 million), non-recovery of bardana from growers (Rs9.656 million) and loss due to auction of wheat at lower rates (Rs2.092 million).

Similarly, an excess payment of Rs1.447 million on account of wheat delivery, unauthorised replacement of 20,108 bags of empty bardana worth Rs1.016 million, shortage of wheat in transit of Rs873,957 and loss of Rs 586.000 million due to theft of wheat and the auditable record of Rs445.913 million during the year 2003-04 was not produced for audit for the scrutiny of offices of the food secretary and each district food controller of Thatta, Karachi and Sukkur.

The committee was informed that 17 officials who were found involved in misappropriation were suspended.

Mr Tamachi asked the food secretary to show orders, if any, to prove that action was initiated to recover the cost from the officials responsible for the losses incurred by the government. He said that such officials should not be given posting.

The food secretary, however, maintained that during the past 12 to 15 years no recruitment was made in the department and except a few officials it was difficult to find people against whom no inquiry had been held.

The PAC chief asked the secretary to furnish the record of corrupt officials, show-cause notices issued against them and their suspension orders in the next meeting.

Other members of the committee – Shama Mithani, M. Moin Khan, Dr Rafique Bhanbhan and Ghulam Mohammad Asran – expressed serious concern over the performance of the food department and observed that the paras showed no satisfactory aspect of the department.