ISLAMABAD, April 20: The Auditor-General of Pakistan has found irregularities of about Rs800 million in the purchase of equipment by distribution companies of the Water and Power Development Authority (Wapda).

According to latest audit report, most of the items procured including 3-phase 4-wire energy meters and meter boxes worth Rs191.033 million and other electrical material worth Rs255.349 million had been rusting in Wapda’s stores since 1998. Most of the electrical equipment were not used over more than nine years.

The audit of 2005-06 accounts of Wapda presented to the National Assembly’s Public Accounts Committee (PAC) found that the meters procured by Wapda were non-PC meters. The report says that the inventory was purchased without assessing the actual needs and that possibility of its further requirement and utilisation was also remote.

These equipment were procured for eight distribution companies (DISCOs) and these companies suffered losses of Rs446.382 million.

In another instance, the audit report says, material worth Rs528.799 million was found short during departmental physical verifications conducted from mid- 1999 to June 2004 in warehouses of the National Transmission and Dispatch Company (NTDC), GENCOs, Guddu and Lakhra.

The report says that in a meeting of the departmental accounts committee (DAC) in March last year, the chief executive officer of GENCO-II provided a copy of progress report which showed that as a result of spot verification by internal audit, shortages to the extent of Rs193.66 million were reconciled, leaving a balance of Rs335.135 million.

NTDC officials informed the DAC that an inquiry committee had been constituted to probe into shortages of materials worth Rs5252.446 million in five warehouses.

However, any probe is yet to be conducted to investigate shortages of Rs21.257 million relating to Lakhra and the remaining amount of Rs61.432million pertaining to Guddu.

The report says that three distribution companies – Multan Electric Supply Company, Lahore Electric Supply Company and Hyderabad Electric Supply Company – have suffered Rs16.5 million losses while purchasing defective electrical equipment.

In its report, the audit department has observed that there is ample room for improvement in the financial management of Wapda and its corporate entities. The department has also demanded improvement in the internal audit system of the authority.