ISLAMABAD, June 26: The large-scale irregularities have been detected in Machine Pool Organisation (MPO), a directorate of the Capital Development Authority (CDA), which has caused a loss of Rs100.076 million to the authority, the audit report 2000 reveals.

According to the report, overpayments, non-recovery of machine hiring charges, etc have been found in four different cases of the MPO.

An army monitoring team had also pointed out many irregularities in the directorate and later, on its recommendation, some 18 officials of the MPO, including its director, were charge-sheeted. But no further action was taken against them.

The report said the MPO provided the construction machinery to various divisions of the CDA but hiring charges of Rs87.832 million were not recovered.

The authority replied to the audit department that concerned divisions were asked to deposit the outstanding dues but no action had been taken in this regard.

In a separate case, an irregularity of Rs4.838 million has been detected in the MPO, as the directorate failed to recover the cost of premix material and charges of vehicles from various divisions/formations of the CDA.

The CDA replied that out of Rs4.838 million, Rs0.848 million has been recovered. However, the audit department expressed its dissatisfaction over the CDA’s reply.

In another case, the CDA suffered a loss of Rs0.757 million due to non provision of concession on the purchase of fuel.

The report said the MPO purchased fuel in bulk from Shell Pakistan under an agreement signed on October 1971. Under the agreement, the Shell had to provide five per cent concession on the total purchase, but this benefit had not been given to the CDA.

The CDA replied that the issue of reduction of rates was taken up with the manager of the petroleum company and efforts were under way to get remitted the same amount in favour of the authority.

In another case, the MPO charged rates of hiring of machines according to the rates fixed in 1991. However, the rates should have been revised to meet the increased cost of POL, spare parts and labour, etc.

The report said during the last decade, the MPO was running in loss due to no revision in the rates. This resulted in a loss of Rs6.649 million to the CDA.

However, the CDA replied that the revision of rates was under consideration of the CDA board.