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Irregularities detected in EPZA

Updated February 27, 2019

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AGP report identifies irregularities worth billions of rupees.— AFP/File
AGP report identifies irregularities worth billions of rupees.— AFP/File

ISLAMABAD: The Auditor General of Pakistan (AGP) has detected irregularities in the collection of Customs Duty and in the working of Export Processing Zones Authority (EPZA).

In its special audit reports for 2011-12 to 2013-14, the report identified irregularities in EPZA which is managing 10 processing zones to promote industrialisation and exports from the country.

The special report identified irregularity of the amount of Rs319.14 million in appointment, promotion and deputation and re-employment at the authority. Another irregularity detected was worth Rs9.712m on account of irregular payment of pay and allowance on fake/forged degree/documents.

The non-recovery of an amount of Rs239.822m under the head of security was yet to be recovered. Similarly the authority paid out an amount of Rs21.92m against Eid assistance. The other irregularities identified in the special reports include irregular award of contract worth Rs1.61m, irregular sale of goods worth Rs153.78m and other financial irregularities worth Rs12.529m.

The report recommends several measures to enhance export proceeds from the processing zones.

Another special report also detected irregularities in determination of input output ratios by input output co-efficient organisation.

The report identified non-realisation of government revenue worth Rs109.6m due to non-accounting of weight gains during sizing process for manufacturing of grey cloth. An amount of Rs0.54m was lost due misuse of the DTRE facility and another amount of Rs176.47m due to irregular import.

The short realisation of Rs55.37m and another amount of Rs76.65m was lost due to unaccounted input goods and Rs14.63m loss due to grant of irregular benefit under the DTRE scheme.

Other key findings of the report said that the organisation did not produce the record and irregularities in other procedures.

It was also recommended that the Federal Board of Revenue should hold inquiry to probe the circumstances which led to non-production of record despite clear instructions of FBR.

Published in Dawn, February 27th, 2019