KARACHI, April 18: A 2003-04 audit report has brought to light financial irregularities to the tune of Rs8.9 billion in the accounts of the Sindh government.

The report, which was presented in the Sindh Assembly in the April 16 session, sheds light on the 44 cases in which the government suffered Rs2.4 billion losses due to the non-auction of royalty and cess on coal, theft, misappropriation and a shortage of wheat.

The report says that the frequency of violations of rules and regulations and financial irregularities bear ample testimony to the fact that most of the principal accounting officers did not have the adequate institutional capacity to attend to financial management and control issues.

It says the auditor-general issued reminders to relevant officials to abide by the regulatory framework and strengthen internal controls to avoid recurrence of the violations, but to no avail. The finance department was also asked to take cognizance of the failure of the internal control environment in different government departments and take effective measures to control the situation, it adds.

These irregularities came to light when the receipts and expenditure from the provincial consolidated fund and public account of various departments and autonomous bodies were audited for the year 2003-04.

The audit of the accounts has detected 99 cases of around Rs2.4 billion of government dues including market fee, hiring charges of bulldozers, income tax, water charges, hospital and police guards’ charges that have not been recovered from various departments.

The report brings to light 26 cases pertaining to irregular procurements worth Rs134.779 million, in 37 cases assets to the tune of Rs97.925million were unaccountable, and Rs18.299million were found missing in 11 cases as the money was not deposited in the relevant accounts. In as many as 34 cases, Rs30.888million was paid in excess to various contractors on various accounts, the report says, indicating that in 60 cases Rs532.051million advance payments still remained non-adjusted.

According to the startling findings of the report, in 86 cases details of expenditures to the tune of Rs1.4 billion was not submitted by various departments and in 49 cases accounts of Rs38.6million were not maintained, while Rs103.1million was illegally transferred from development to non-development funds.

The report detects 32 cases in which around Rs57.516million was paid as salaries and other allowances to employees appointed during the ban period without observing the prescribed rules and regulations. Besides, 299 cases of other violations have also been detected causing losses worth Rs1.2 billion to the exchequer.

It also points out various issues including absence of management controls to prevent unauthorised practices and improper utilization of public money, absence of adequate safeguards to protect public property from theft, misuse etc, non-observance of the codal formalities and the laid down procedures.

Out of the 16 departments audited, departmental accounts committee meetings could only be held with the food, home, mines and mineral development, police, forest and wildlife, SGA&CD and works & services departments, two universities and three boards of education, it says.

The report recommends that in order to avoid such irregularities the principal accounting officers should take immediate steps to investigate cases of losses, embezzlements, irregular payments and unaccountable cash and stores and take appropriate corrective action and urged an effective recovery system of government dues and their deposit into the treasury.

It goes on to say that funds irregularly kept outside by the departmental functionaries be deposited into public account and to regularise the cases of non-compliance where considered applicable, procurements should be made in a transparent manner regulated by in-built checks and balances.

Likewise, they should ensure timely production of relevant record for audit in respect of cases besides taking disciplinary actions.