Probe finds ex-director of WB-funded project responsible for Rs410m embezzlement

An initial investigation found a former project director of the World Bank-funded project ‘Sindh Water and Agriculture Transformation’ for the improvement of agriculture in the province responsible for alleged embezzlement of Rs410 million.

Following the investigation, the Sindh government has recommended strict legal action against the former director general of the Sindh Agriculture Department and former project director of the World Bank-assisted project, Hidayatullah Chajro.

Initially, the Internal Audit Unit (IAU) of the Sindh Planning and Development Department conducted an audit of accounts and found serious irregularities and misappropriations of funds, and recommended the registration of a case against the former project

director.

Sindh Chief Secretary Asif Haider Shah suggested a strict legal course of action against Chajro, including initiating proceedings against him by the Sindh Anti-Corruption Establishment. The CS further directed the Sindh Agriculture Department to approach the accountant general of the province through the Sindh Finance Department to block his pension and other benefits, attach his properties through the Board of Revenue to recover the embezzled amount, and place his name at Exit Control List (ECL). Besides, the chief secretary directed the Chief Minister Inspection Team to conduct a detailed inquiry within 15 days and determine the extent of involvement of other officers, contractors, and vendors.

CS Shah also directed the Law Department to suggest the way forward for the recovery of the embezzled amount. He has appointed Najam Ahmad Shah, then secretary of the Forest and Wildlife Department, for a detailed inquiry into the matter. After an initial review of the matter, a two-day detailed review was conducted by the World Bank Financial and Management Team and it found most of the financial controls and pending documents in place, which were pending as a matter of base tasks throughout Sindh, while a field team was dealing with the emergency operations.

On the outcome of the review meeting, it was suggested that an independent audit firm be engaged to carry out a review of the financial processes, physical verification, and controls of the World Bank finance guidelines as per the financial agreement of the World Bank and Government of Pakistan and the project agreement signed by the IDA and the government of Sindh.

An audit firm ‘Ernst and Young’ was engaged by the World Bank and it carried out an audit, and the report of this audit is still under preparation and awaited along with the recommendations of the World Bank.

Inquiry officer Najam Shah, after a thorough review of connected case papers, considering the defence statement of the former project director, the report from the IAU of the Planning and Development Department, and taking into review the standard procedure of the government’s Audit and Accounts Department, has concluded that non-compliance and irregular expenditures were done by Chajro, and unauthorized expenditure up to Rs242.82 million has been identified, which is further bifurcated into ineligible expenditure of Rs201.38 million.

Inquiry officer Shah recommended that the Sindh Finance Department should immediately send a reference to the accountant general for recovery from the pension of the ex-project director or by attachment of his properties through the Board of Revenue and a case be initiated by the Sindh Anti-Corruption Establishment against him. Former project director Chajro refuted all the allegations and claimed that the action had been taken against him only to damage and defame his strong clean career. He said he is a gold shield winner from the World Bank for managing and implementing the World Bank-funded project.