FAISALABAD, May 15: A local audit team has unearthed a scam of millions of rupees in the accounts of the Divisional Model College and the Divisional Public School, and asked the authorities concerned to take appropriate action against the corrupt officials. Sources gave out that the team, headed by the divisional coordinator, conducted an audit of both educational institutions being run by the Board of Governors under DCO’s supervision.

The audit conducted from July 1, 2002, to Feb 28, 2005, revealed that the officials had misappropriated millions of rupees, inflicting huge losses on the national kitty.

The Divisional Model College rector had sanctioned Rs7 million for the purchase of airconditioners, computers, printers, furniture, lab equipment, stationery and miscellaneous items without fulfilling codal formalities like inviting quotations through press, acceptance of lowest rates and recommendations of purchase committees.

The audit report revealed that Rs4 million had been transferred to DPS funds on Feb 24, 2003, and Sept 17, 2003, out of total Rs17.2 million investment without realization of any profit from bank authorities.

In most of cases, the rector continued spending the amount without obtaining prior approval from BoGs president on the presumption that he himself was competent for all kind of expenditures. There was no booklet containing competency of the rector in this regard. Purchases were made by obtaining quotations from only one firm, the report said.

It was also observed that a sum of Rs50,000 had been drawn from the bank on account of incentive payment to the administration staff. But not a single employee had received the payment.

While Rs200,000 were paid to a consultancy firm without execution of an agreement. The firm left the work after receiving the amount causing a substantial loss to school funds.

Similarly, scores of people and firms were paid the amount without deducting sales tax and income tax causing huge losses to the government exchequer.

Huge amounts had been embezzled from the accounts of staff incentives for Rs500 could only be paid to a teacher as an incentive or honorarium for good work, but the authorities spent Rs476,500 in this regard in violation of prescribed rules.

The DPS staff also misappropriated funds collected from students in the name of tsunami victims. The officials concerned received huge amounts from different quarters as donations for the school, but the record had been destroyed.

According to the report, dozens of employees were also appointed in the institution without any advertisement in newspapers.

It further noted that serious irregularities had been committed by officers concerned in contingent expenditures, fuel charges, vehicle services, purchase of books and other miscellaneous heads of expenditures.

The report found that the staff had indulged themselves in the nasty business of selling uniforms and books to students in clear violation of prescribed rules and regulations. No transaction in this regard had been effected in the general cash book.

It was also noticed that the staff had concealed the record of establishment cheque register, deduction register, income deduction register, loan and temporary advances register, service books of employees, leave registers, security registers, demand and collection registers, repair register and inventory of old material register.