November 20, 2001	Tuesday	Ramazan 4, 1422

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ISLAMABAD, Nov 19: Audit Department has pointed out losses, wastage and embezzlement of millions of rupees in various projects of Wapda according to special audit reports for the year 1999-2000 submitted to federal ad hoc Public Accounts Committee.

Special audit reports were discussed on Monday at the meeting of the Public Account Committee. Chairman of the committee, H.U. Beg presided over the meeting.

H.U. Beg ordered an inquiry into non-recovery of Rs56.087 million from the contractor of the Swabi salinity control and reclamation project Wapda, Mardan.

The committee discussed three special audit reports submitted by the Audit Department about various projects of Wapda including Swabi salinity control and reclamation project, Mardan, distribution load management through ripple control system and Fordwah Eastern Sadiqia (South) project, Bahawalnagar, beside other paras of the audit report for years 1999-2000.

The committee expressed its displeasure over the mismanagement, ill-planning and lack of financial control in the ministry of water and power.

The meeting was attended among others by members of the committee including Lt-Gen (retd) Talat Masood, Muzaffar Ahmad, Hassan Bhutto, Ahadullah Akmal, Syed Shaukat Hussain, Irtiza Hussain and S.M. Zafarullah.

The committee directed the principal accounting officer of the ministry to reform financial system in the ministry aimed at saving millions of rupees loss to national exchequer as wastage and embezzlement.

The committee asked the Wapda authorities to hold inquiries into losses of millions of rupees owing to mismanagement and submit reports within a period of one month.

Chairman PAC H.U. Beg directed his own secretariat to summon FIA officials for presenting report about the loss of Rs148.324 million due to use of below specified, poor quality and outdated material supplied by various contractors.

The committee expressed its displeasure over the poor response of the ministry regarding directives issued by the PAC secretariat for inquiries into various matters relating to some projects and audit paras.

Explaining the position of the ministry, secretary of the ministry Hamid Hassan admitted lapses of financial advisers and told the committee the department initiated disciplinary action against responsible officials and recovered part of embezzled amount.

Some cases of mismanagement pointed out by the Audit Department were referred to the FIA with all required documents for further investigation, the principal accounting officer told the committee.

On the complaint of the Audit Department about non-production of record for audit, the chairman asked his secretariat to send a letter to all principal accounting officers to ensure the production of record as part of accountability and financial control.

Audit Department drew the attention of the committee through comments given in the audit brief regarding internal control system that “it was observed that the internal control system was not functioning properly, even internal check was not conducted both in the ministry of water and power and Federal Flood Commission”.

The committee took serious notice of the unauthorized payment of telephone bills amounting to Rs5.801 million of the ministry of water and power by Nespak and Wapda terming the payment wrong through irregular orders by the competent authority. It directed the principal accounting officer to hold an inquiry into the matter of the provision of excess telephone at the offices and residences of former ministers Ghulam Mustafa Khar and Jam Muhammad Yousaf and senior officials of the ministry that caused loss of millions of rupees.—APP