KARACHI, Oct 8: Financial losses of over Rs2.2 billion have been detected in the accounts of Employees Old Age Benefits Institutions, says an audit report.
The report, prepared by the directorate of the commercial audit (an office of the Auditor General of Pakistan), says that at least 20 cases involving losses of over Rs2.2 billion have been detected and the EOBI despite reminders did not respond.
The irregularities, according to the report, include blockade of capital owing to ill-planned investment of over Rs1.4 billion in plots, an investment of over Rs438 million in Sui Southern Gas Company Limited in violation of investment rules; irregular purchase of vehicles involving over Rs20 million and irregular payment of leave fare assistance amounting over Rs6.6 million.
The report says that the EOBI had made an advance payment of over Rs1.4 billion on account of 400 plots purchased in Islamabad. The payment was recorded as a capital expenditure because allotment of these plots in EOBI was to be done later.
The audit says that till the disposal of these plots no earning on this huge investment was expected and capital of over Rs1.4 billion had been blocked owing to ill-planning.
The report says that the EOBI had invested over Rs438 million in the SSGL without following the relevant investment rules. It said that the Investment Rule No 3(6) says that investment could be made in companies listed on the stock exchanges which have shown more than 20 per cent earning per share per annum.
It said that the EOBI had invested over Rs438 million in SSGL earning per share of which was just around 14.9 per cent. The external auditors had also pointed out in their comments that while making this investment compliance of Investment Rules was not observed.
The audit found out that over Rs1 billion had been embezzled in the EOBI and the matter was also investigated by the National Accountability Bureau which filed a reference in the Accountability Court after taking most of the accused in custody.
The accused, however, approached the NAB for settlement and surrendered some properties worth over Rs780 million. The deal was approved by the accountability court, leaving shortfall of over Rs250 which was to be recovered.
The audit also found out that the EOBI had purchased 21 vehicles of over Rs20 million in contravention of government orders which clearly stated “no new vehicle will be acquired by any government ministry/ division/ department for any purpose till further orders. This shall also apply to corporations/autonomous/ semi-autonomous bodies under federal government.”
The vehicles purchased included eight KIA Grand Sportage Jeeps of Rs12.3 million; two Toyota Corolla cars of Rs1.6 million; two Suzuki Cultus cars of Rs1.17 million, five Suzuki Potohar jeeps of Rs3 million, four Sukuzi Bolan vans of Rs1.5 million. The audit report says that the expenditure was not only against the rules but also wastage of public exchequer.
The audit also raised objections and pointed out lack of control over expenditure by the management as it had spent over Rs40 million more than the approved budget.
The report says that despite reminders the EOBI did not respond to the objections raised. It had also been suggested that steps be taken to recover the amount illegally spent by the officials so that it could act as a deterrent for others.
