ISLAMABAD: The Auditor General of Pakistan has identified multibillion rupees irregularities in the financial affairs of Khyber Pakhtunkhwa (KP) government, with a major chunk of them related to the agriculture, energy, health and transport sectors.

According to the audit report of the KP government accounts for the year 2021-22, only the expenditures without allocation/budget stood at Rs17.86 billion while there was “irregular reflection” of Rs21.5bn.

Highlighting Rs7.7bn irregularities in energy and power department, the audit report termed the award of Rs2.8bn contract for procurement of equipment for 84-megawatt Gorkin Matiltan Hydro Power Project ‘doubtful’.

In the agriculture department accounts, Rs18.45bn irregularities were detected and the lion’s share of these was related to Gomal Zam Dam project.

The KP health department accounts showed a total of Rs3bn irregular expenditure, which in­­cluded giving undue favour in award of Rs449m contract for procurement of lab services for testing Covid-19.

Impartial inquiry

Also, the auditors detected irregularities in the KP transport department amounting to Rs3.44bn, which included payment of Rs2.9bn for Bus Rapid Transport project. According to the report, the contract agreement was executed on March 12, 2018, between Trans Peshawar (The Urban Mobility Company), Peshawar and MS Xiamen Golden Dragon Bus Co. Ltd, China for the supply of 220 number of buses along with maintenance/training services for the Peshawar BRT. However, audit showed that 92 buses worth Rs2.9bn were not delivered till the end of June 2020.

The auditors termed the reply of the transport department “evasive” and recommended “impartial inquiry into the matter for fixing responsibility”.

The report mentioned that out of 220 buses, only 128 were delivered even after a lapse of considerable time.

In the financial accounts of KP environment, forestry and wildlife department, the audit report found Rs410million irregularities including Rs40m on account of illegal cutting of forest and encroachment.

The audit of excise, taxation and narcotics control department accounts detected Rs964m irregularities.

The audit report pointed out that the excise department failed to recover Rs675m property tax from Wapda (Pesco). In the revenue and estate department, Rs33m irregular expenditures were detected.

Doubtful and non-transparent award of contracts, overpayment and unjustified payments were detected in the communications and works department, as auditors detected a total of Rs1bn irregularities.

Financial irregularities amounting to Rs902m was also found in KP education department where auditors found Rs567.2m was spent on “purchase of furniture, stationery and school bags”.

It also highlighted irregularities of Rs382m in the audit of public health engineering department.

The audit report stated that the “management selected and awarded the contract to the second-best evaluated bid M/S Islamabad Diagnostic Centre by ignoring the highest marks and best evaluated bid of Shaukat Khanam Memorial Hospital and Research Centre”.

The report mentioned Rs823m irregular expenditures in sports, culture, tourism and youth affairs department, Rs758m in planning and development department, Rs587m irregular expenditures in finance department, Rs78m in IT department, Rs378m in mines and minerals department, Rs182m in social welfare department, Rs138m in irrigation department, Rs84m in food department, and Rs234m in the home and tribal affairs department. The report, however, said the department made irregular payment of Rs250m to “Malaks for Special Khasadar” and did not verify record of vehicles worth Rs1.4bn.

Published in Dawn, January 9th, 2023