MULTAN: An audit team will arrive here on Monday (today) to conduct five-year special audit of the Wapda Employees Cooperative Housing Society (WECHS), the most expensive housing society in the city, Dawn has learnt.

Sources said the Punjab cooperatives chief auditor ordered the special audit after complaints of massive irregularities, embezzlement and fraud were reported to the department. They said although a notification for the audit had been issued by the chief auditor on Dec 31, 2015 with the direction to the audit firm to furnish a report within a month to proceed further and the chief auditor cooperatives was supposed to personally monitor the entire process, the elements involved in wrongdoings managed to delay the process using their contacts with those at the helm of affairs.

The special audit had been assigned to M/S Phinehas and Co Chartered Accountants, Lahore for July 1, 2011 to Dec 31, 2015 through a notification issued from the office of the cooperatives department registrar.

According to the notification, the copies of which were also dispatched to the cooperatives secretary, audit firm concerned and the society committee convener/caretaker through cooperative district officer with the direction to provide all required information to the auditor for completion of the task. Besides fulfilling other requirements, the audit firm will also focus on how much land was purchased for the society during this period, at what rate and on whose approval, how much plots were carved out and whether a layout plan was submitted and had approval from the Multan Development Authority (MDA), whether balloting of plots was conducted after approval of layout plan or before the approval, how much money was received from members of the society against cost of land and development charges, how much funds were spent on various projects under different heads during the period under report, what is the current status of civic amenities plots and commercial plots, how much bank accounts were being maintained by the society and who has been operating these accounts during this period and how much machinery/equipment was purchased and at how much cost.

Society residents sent several applications to the authorities to point out irregularities by the society while petitions were also filed in courts.

A petition by resident Muhammad Iqbal Chaudhry against the provincial government, secretary, registrar, district officer cooperatives (DOC) and the society highlighted violation of bylaws regarding management committee (MC) of the society and its elections.

He alleged that management of the society had been hijacked by people who were making money through allotment of plots to their “blue-eyed persons” without any justification and depriving several members of the society of the right to vote elect the MC.

He said a letter had been issued on June 20, 2013 to the society that it had launched Phase-III without prior approval from the competent authority, but no action was taken. He requested the court to direct authorities concerned to conduct the election in accordance with the bylaws and declare balloting of Phase-III illegal, besides directing the registrar to decide his application before election and balloting of plots.

DOC Saleem Akhtar Qureshi confirmed that an audit team was reaching Multan on Monday for a special audit of the society. He said he was not aware of why the audit was delayed.

Published in Dawn, February 8th, 2016