HARIPUR, Sept 20: Financial irregularities and mismanagement in the Works and Services Department have cost the national exchequer Rs11.35 and delayed the commissioning of the 12-year old project of the District Headquarters Hospital.

According to a letter (No 7543/A dated 9.8.06) written by the deputy director for Works and Services Building and Repair to assistant director and sub-engineer of the Building 1, sub division Haripur, the Rs112.03 scheme for improvement and standardisation of phases 1, 2 and 3 of the hospital was approved on March 17, 2003, and the contract, awarded in four packages, commenced during May 10, 2003, and March 25, 2004.

However, owing to site requirements, the Works and Services Department was directed to make alterations and additions in the entire building as the government wanted to complete the project in one go and make it operational because it was already delayed by 12 years. The alterations in all the three phases of the project was approved on Nov 11, 2005, with a revised cost of Rs148.769 million.

By November last year, a sum of Rs116.2 million had already been spent on the first phase that was meant to become operational in 1998, while under the revised plan, the project was to be ready for operation by December 2005. But the project could not be completed within the stipulated period and the funds amounting to Rs20 million remained unspent.

When contractors failed to complete their work in time, the department rescinded the contract of package 2, and 3, on Aug 1, 2006.

The letter said that scrutiny of the final bills of all the three packages revealed that Rs8.035 million had been paid to contractors without completion of work and moreover Rs3.30 million deposited against work as security and earnest money had also been released to them which was originally meant to be forfeited in case of contractors’ failure to complete the work within the given time.

The letter said that undue favours had resulted in complications as double payment had been made to them against work done which was not originally completed. The letter asked both the officers to clarify their positions within three days.