C EM Peshawer 1

7/27/2019 C EM Peshawer 1

1/14

Para No.1

SUBJECT: - INFRUCTUOUS EXPENDITURE OF RS. 1.733 MILLION

According to Rule 10 of General Financial Rules (Volume-I), every pulic officer aut!ori"ed to

incur e#penditure from pulic funds is e#pected to e#ercise t!e same vigilance as a person of

ordinary prudence $ould e#ercise in respect of !is o$n money%

&!e audit scrutiny of t!e accounts record relating to 'entral * +ivision, a% .+,

es!a$ar !as revealed t!at total / os operational ve!icles on t!e +ivisional fficer pool !ave

completed its useful life and declared eyond t!e economical repair and pared prior 2une, 3011

for pre-inspection 4 declaration of condemnation replacement% After t!ese circumstances, all

drivers $ere ecome inoperative ut even t!en an e#penditure of Rs% 1%/55 (*) !as een

incurred on ay and Allo$ances of t!ese unoccupied drivers% eit!er t!e case for condemnation 4

replacement of operational ve!icles !as een initiated nor !ave surplus drivers een s!ifted to

ot!er needy +ivisions 4 6nits of a% .+ to save t!e pulic e#c!e7uer from urden of

recurring loss $!ic! is eing increased mont! y mont!% &!is resulted into infructuoius and

un8ustified e#penditure of Rs%1%/55 million $!ic! needs to e clarified4 8ustified%

Departmeta! Rep!"

A s!ort fall in t!e pay of maintenance staff came to surface and t!e competent aut!ority issuedinstructions to pay t!e mont!ly salary to maintenance staff from t!e availaility of funds in ot!er

!eads% 9ence payment made accordingly%

F#rt$er %#&'t Commet(

&!e irregularity !as een admitted y t!e department and promised to re7uest t!e aut!ority to

$it!dra$n t!e services of surplus drivers%


2/14

Para No.)

SUBJECT: - LOSS OF RS. 1.*+, MILLION DUE TO NON DISPOS%L OF

CONDEMNED EICLES

Rule 3: (:) () for t!e use of staff 'ar 1;u"ui 'ar4Van ? years 1?0,000 @*%

3 2eep4station .agon < years 300,000 @*

5 'ar 1500 '' ? years 300,000 @*

'ar 1?00 '' / years 3:0%000 @*

&!e audit scrutiny of t!e accounts record relating to 'entral * +ivision, a% .+,

es!a$ar !as revealed t!at / o% operational Ve!icles of various categories and *odel !ave

completed its prescried life since 1;u"ui 2eep *odel 1;


3/14

SUBJECT=-UN%UTORI0ED UNJUSTIFIED 2ITOLDIN OF

P%4%BLE %MOUNT OF RS. ).3)5 MILLION

&!e Finance +ivision (Cudget .ing), Government of aistan vide letter o%F-5(30)

CR4II4;-C-Vol-I4515 dated April 1:, 1;;/ allo$ed operation of follo$ing ersonal Dedger

Accounts (DA) in a% .+ $it! "ero alances operative from 2uly 1, 1;;/=

DA-I Annual +evelopment rogramme Dapsale

DA-II *aintenance only Dapsale

DA-III +eposit .ors on-Dapsale

DA-IV t!er +eposits suc! as 'ontractorEs

>ecurities, G Funds receipts, etc% on-Dapsale

&!e Audit scrutiny of t!e accounts record of 'entral * +ivision, a% .+, es!a$ar

!as revealed t!at t!e claims of 13 contractors $ere approved and e#penditure $as c!arged to

t!e udgetary grant against t!e $ored done ut an amount of Rs%3%53 million (detail

attac!ed) !as een $it!!eld at t!e time of payment in 2une 3011 due to test c!ec or any

ot!er reasons not recorded in t!e *C% &!e $it!!eld amount dra$n from lapsale DA-1 $as

transferred in DA- IV (non-lapsale account)% +espite t!e rules donEt permit $it!!olding of

payments after ooing of e#penditure and t!an transference of funds from DA-I to DA-IV%

.!ereas t!e DA- IV is meant for only ot!er deposits suc! as contractorEs >ecurities, G

Funds receipts, etc%Audit !olds t!at $it!!olding of approved payments is unaut!ori"ed and irregular $!ic!

needs to e clarified 4 8ustified%

Departmeta! Rep!"

&!e $it!!olding of amount in 2une 3011 is due to t!e follo$ing reasons%

1% 10 $it!!old for #ecutive ngineer test c!ec%

3% 'ommissioning and testing%

9ence t!e amount $it!!old $ill e aut!entically transferred to DA-IV%


&!e department replied t!at t!e amount $as $it!!eld due to non-completion of codel formalities%

&!e reply $as not found satisfactory ecause approval of claims in t!e asence of codal

formalities is itself constituted violation of rules% .it! !olding of payment after ooing of

e#penditure and its transfer to DA-IV $as not permissile under t!e rules%


4/14

Para No.5

S#6e8t: - UN-%UTORISED REFUND OF PEN%LT4 %MOUNTIN TO

R(.,.)5, MILLION %ND 2ITOLDIN OF R(. 1.*9+ MILLION

'lause 3 of standard contract agreement provides t!at t!e time allo$ed for carrying out t!e $or

s!all e strictly oserved y t!e contractor and time eing deemed to e of t!e essence of t!e

contract on part of t!e contractor% In t!e event of t!e contractor failing to comply $it! t!is

condition !e s!all e liale to pay as compensation an amount e7ual to one percent or suc!smaller amount as >uperintending ngineering ($!ose decision in $riting s!all e final) may

decide on t!e estimated cost of $!ole $or provided al$ays t!at entire amount of compensation

s!all not e#ceed ten percent of t!e estimated cost of $or %

&!e Audit scrutiny of t!e accounts record of 'entral * +ivision, a% .+, es!a$ar !as

revealed t!at a $or construction of survey of aistan uilding at es!a$ar (>%9% Coring of

tue $ell and installation of pumping set) $as a$arded to *4s *%%A.A and sons H:

aove t!e I& cost of Rs%1,::?,


5/14

Para No.+

S#6e8t: - RUS OF EXPENDITURE %MOUNTIN R(.31.393 IN TE MONT OF JUNE/ ),1)

Rule ;? of General Financial Rules (Vol-I) provides t!at it is contrary to t!e interest of t!e >tate

t!at money s!ould e spent !astily or in an ill-considered manner merely ecause it is availale

or t!at t!e lapse of a grant could e avoided% In t!e pulic interest, grant t!at cannot e profitalyutili"ed s!ould e surrendered% A rus! of e#penditure particularly in t!e closing mont!s of t!e

financial year $ill ordinarily e regarded as a reac! of financial regularity%

&!e Audit scrutiny of t!e accounts record of 'entral * +ivision, a% .+, es!a$ar !as

revealed t!at out of t!e total e#penditure, Rs% 51%5;5 million (i%e,5/ percent), $as incurred during

t!e mont! of 2une 3013% A revie$ of e#penditure statement indicates t!at ma8or part of releases

received during second and t!ird 7uarter remained un-utili"ed and t!e disursement $as

accelerated during t!e closing mont! of financial year 3011-3013% &!e a$ard and e#ecution of

$ors in a very !asty manner cast serious douts on t!e aut!enticity of e#ecuted $ors and

disursed funds%

&!e matter needs clarification48ustification

Departmeta! Rep!"

In t!is respect it is stated t!at most of t!e released $!ere received in t!e end of *ay and 2une

9ence, after receipts of funds, t!e completion of 'odal formalities taes time and t!is is t!e

reason t!at after fulfillment of codal formalities t!e payment is made%


&!e reply is not satisfactory ecause no documentary evidence indicating t!at t!e funds $ere

released in t!e last 7uarter of Financial year !as een produced% Financial position is t!at funds

for +evelopments >c!emes $ere released during 3nd 5rd7uarter and remained un-utili"ed% &!e

disursement $as accelerated in 2une-13%


6/14

Para No.*

SUBJECT: EXCESS EXPENDITURE ON 2OR; C%RE EST%BLISMENT RS.

),.7


7/14

Para No.7

SUBJECT:- MIS-PROCUREMENT IN %2%RD OF 2OR;S %MOUNTIN TO

RS.1*.3*) MILLION

Rule 30 of ulic rocurement Rules, 300 provide t!at procuring agencies, $!ile engaging

in procurements, s!all ensure t!at t!e procurements are conducted in a fair and transparent

manner, t!e o8ect of procurement rings value for money to t!e agency and t!e procurement

process is efficient and economical and t!e rocuring agencies s!all use open competitive

idding as principal met!od of procurement for t!e procurement of goods, services and $ors%

+uring t!e Audit scrutiny of t!e accounts record relating to 'entral * +ivision, a% .+,

es!a$ar !as revealed t!at 3 os% contract for repair maintenance of lectrical4 Gas

installation amounting to Rs%1?%5?3 million (detail attac!ed) $ere a$arded during financial year3011-3013% 3/ contracts amounting to Rs%;%5:3 out of 3 (i%e%? contract $ise :/ amount

$ise) $ere a$arded to a selected contractor *4> >!a! &raders% Audit !olds t!at t!e entire

idding process $as manipulated to ensure t!e a$ard of contracts to selected4favorite individual

and undermined o8ective of prudent utili"ation of pulic money t!roug! transparent and

adoption of open competitive idding process to ring t!e value for money%

&!e matter needs clarification48ustification

Departmeta! Rep!"

6nder t!e Rules t!is office cannot ound any 'ontractor to participate in tendering process of

$ors% &!e $ors $ere a$arded after fulfilling all codal formalities re7uired for calling tenders%


&!e department replied t!at $ors $ere a$arded after fulfilling all codel formalities% &!e reply

$as not satisfactory ecause ? of total $ors $ere accorded to a selected contractor and under

mind t!e open competitive idding process to ring t!e value for money%


8/14

Para No.ystem of Financial 'ontrol and

Cudgeting, funds may not e appropriated or re-appropriated from to or $it!in t!e mployees

Related #pensesE from operating e#penses, communication, telep!one trun calls, tele#, tele-

printer Fa#, electronic communication, utilities, gas, $ater, electricity, and occupancy cost%

&!e audit scrutiny of accounts record of 'entral * +ivision, es!a$ar, t!at udget

allocation under t!e !eads material, $or y contract, special repair and utility !ave een re-

appropriated for utili"ation to$ards salary of $or c!arge 4 maintenance staff for t!e last 7uarter

of financial year 3013% vidently t! e#ess e#penditure !as een met from t!e saving or

postponement of e#penditure under ot!er !ead of accounts of t!e grant% &!is resulted in

unaut!ori"ed e#penditure of Rs% 3%0?1 (*)% &!is needs to e clarified 4 8ustified%

>%o+escription of >u-

9eadCudget Allocation #penditure

Amount Re-

Appreciated

1perating #panses

(General 6tility)

Rs% :,0,000 Rs% ,0tructure (A-155)

Rs% ::5,000 Rs% ;1,500 Rs% ?1,/00

Tota! R(. )/,*,/977

Departmeta! Rep!"

A s!ort fall in t!e pay of maintenance staff came to surface and t!e competent aut!ority issued

instructions to pay t!e mont!ly salary to maintenance staff from t!e availaility of funds in ot!er

!eads% 9ence payment made accordingly%


&!e irregularity !as een admitted y t!e department and may e regulari"ed from competent

aut!ority under intimation to audit%

C EM Peshawer 1

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