AGP report reveals irregularities of Rs4.722b in Bus Rapid Transit project

PESHAWAR: Auditor General of Pakistan report has revealed Rs4.722 billion irregularities, wastages, unauthorised payments, misappropriation, and fictitious expenditures in the Bus Rapid Transit (BRT) project. This amount also included recoveries of Rs1,478.026 million as pointed out by the auditors.

Khyber Pakhtunkhwa chief minister’s special assistant and spokesperson of the provincial government, Kamran Bangash told this correspondent that the audit report is a routine procedure in which some objections are identified in the absence of records through audit paras. He said many objections and issues are resolved in the meeting of the Departmental Accounts Committee (DAC) while the remaining audit report is presented in the meeting of the Public Accounts Committee (PAC). He said the government would fully defend all the objections in PAC as there was no corruption in Bus Rapid Transit project.

The audit report 2019-20 revealed that the provincial government had approved to pay Rs300,000 per month as BRT allowances to the officers of the Project Monitoring Committee including the additional chief secretary and the provincial secretaries but a sum of Rs10 million was over and above paid to these officers. The officers included the then additional chief secretary Shehzad Khan Bangash and former secretaries Kamran Rehman, Syed Jamaluddin Shah and Zahir Shah.

Similarly, a sum of Rs11.02 million was illegally paid on account of BRT allowance to officers/officials whose designation/posts were not mentioned in the revised PC-I which was declared unauthorised payment? Likewise a sum of Rs3.737 million was paid to various 143 internees on account of their salary without provision in the revised PC-I. The payment of Rs3.373 million is held authorised. The Chief Executive Officer Cantonment Board Peshawar was paid Rs24.250 million on account of disturbance charges. There was no provision for the purpose in the approved PC-1, hence the same was charged to the funds provided for utility relocation. The expenditure of Rs.24.250 million was held irregular. The PDA has incurred the expenditure of Rs21.881 million on the payment of salary to staff and POL for various vehicles. The same was adjusted against the cost of vehicles purchased under the BRT. Audit opines that the purchase of the vehicles was not a legitimate charge on the BRT; therefore, the same was required to have been recovered.

Similarly, during 2017-18, a balance of Rs1248 million was unauthorised retained by the department. Furthermore, the aggregate fictitious expenditure of Rs2.68 billion is held irregular and needs justification.

Another payment of Rs14.447 million was made to M/s Maqbool Calsons for the supply of vehicles by a variation order. The purchase was made without open tender to get economical rates. The M/s Indus Motors was paid Rs13.328 million whereas payment of Rs14. 447 million was made to M/s Maqbool Calsons. This resulted in an excess payment of Rs1.119 million to the contractor, which needs recovery.

The audit report further revealed that all the dismantled materials belonged to PDA but in absence of proper record the dismantled material worth Rs25.445 million led to misappropriation.

It was pointed out that payment to the tune of Rs40,561,084,538/- was made to various contractors. Disabled Person Rehabilitation charges at the rate of Rs2000/ per million, amounting to Rs170.711 million, was required to have been deducted. Contrarily deduction of Rs4.293 million was made. This resulted in the loss of Rs143.586 million. The audit report said the BRT funds amounting to Rs1500 million were transferred from the United Bank account to the Bank of Khyber. The BoK during this period had allowed interest on the principal amount only without compounding the interest amounting to Rs41, 987,994/ earned during the period. This resulted in a loss of Rs139. 026 million to the government. The loss of Rs139.026 million needs inquiry and fixing responsibility.

It was pointed out that the contractor had damaged PDA assets while removing them from the site of work. Whereas it was its responsibility to dismantle and hand it over to the PDA and also pay the machinery charges. Contrarily most of the items were damaged but the same was neither repaired nor cost thereof amounting to Rs.54.891 million recovered from the contractors.

The M/s Maqbool Calsons was paid Rs12.633 million for the new green belt. On physical verification of site, it was observed that the contractor has supplied sweet earth only and payment was made. He had neither provided the items mentioned in the specification nor his rate reduced accordingly. The full payment was made which resulted in an overpayment of Rs11. 369 million to the contractor.

The report said on verification of department’s tax collection statement for 2014-15 to 2017-18, it was observed that 60% share amounting to Rs24.759 million was less deposited in government bank account by the service provider. The profit earned on the BoK PLS account amounting to Rs42.986 million was not deposited in the government treasury by transport department.

It was pointed out that the local office executed the items of work as Non-BOQ, non-removable 296 formwork of precast girders for Rs79,972,813 audit opines that the shuttering was included in every concrete, therefore, its approval under the non-BOQ item of work was irregular. Hence, the expenditure of Rs131, 889,613 so incurred needs recovery. The bank statements were reviewed and observed that interest of Rs71, 053,437 was earned on two accounts up to 6/2019 but not credited to the provincial government account. The retention of interest amounting to Rs71,-035,437 was held irregular and should be intimated for audit.

The report further said M/s Maqbool Calsons JV was paid Rs924, 176 for the items of work, excavation of unsuitable common material complete in all respects. They were also paid for another non-BOQ item of work ie disposal of a surplus common material (Already excavated/debris) Rs43,455,802. Similarly, Rs47,471,072 was paid to the same contractor on account of the disposal of existing unsuitable material. Audit opines that the later item of work was covered in the first item of work hence its approval & payment as a Non-BOQ item of work is a duplication of the earlier paid item of work. The payment of Rs 90.27 million made was therefore held irregular and needs recovery.

The audit report further revealed the government had released a government counterpart fund amounting to Rs3, 555,822,000 during the year.

The local office incurred an expenditure of Rs2,119,939,770 up to June 30, 2019, leaving a balance of Rs1,435,982,230 in the bank account. The same was not surrendered and retained at closing of the financial year.