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Audit report detects Rs209m misspent in defence ministry
July 12, 2013 ASIM QADEER RANA
ISLAMABAD - The mighty bosses in charge of powerful Defense Ministry were caught up by the country’s audit department that found out embezzlement of million of rupees while auditing its accounts during the fiscal year 2011-12, revealed an official document available to TheNation.Auditor General of Pakistan found out embezzlement and irregularities in Defense Division worth of more than Rs. 209 million during audit for the year of 2011-2012.
Auditor General presented the report before the offices of President, Prime Minister and Public Accounts Committee (PAC) for further instructions.
According to the documents, the final budget allocated to the Defense Division for the financial year 2011-12 was Rs. 520,453.18 million including Supplementary Grant of Rs. 14753.913 million against which the division utilized Rs 524802.596 million.
It reveals that most irregularities were discovered in unauthorized payment to Army Welfare Trust (Askari Aviation Private Limited) Rs. 67.94 million in the Ministry of Defense vide 6(11) 2011-f-IIdated 7-03-2011 authorized Army Welfare Trust to provide two passenger aircraft top carry up to 300 passengers each from Tunisia to Islamabad. On successful completion of flight an amount of $790,000 was paid to M/S Army Trust. The audit observed the Prime Minister had approved the evacuation of stranded Pakistanis through charted PIA or non-PIA or commercial flights at government expense but the Army Welfare Trust (Askari Aviation) was not a commercial airline.
The work awarded to Army Trust without calling open tenders. The audit is of the view that undue favour was extended to the Army Trust, therefore, the payment was irregular and un-authorized the document revealed.
According to the document, the Defense Ministry incurred a loss due to irregular expenditure on account of POL charges Rs 2.228 million. According to the audit observation the Defense Ministry officials purchased worth of 2.228 million rupees of POL from PAF base Chakala Rawalpindi, and PNS Mehran Islamabad the registration numbers of the vehicles mentioned in the claim were different from those provided to the audit team. Difference in registration numbers of vehicles could lead to misuse of POL beside inability of audit ascertains the authenticity of the expenditure documents revealed.
Similarly, the Survey of Pakistan (SOP) that is under the administrative control of Ministry of Defense, an amount of Rs 119.980 million in the head of non-reconciliation of receipts is observed in the account of deposit works, received from various organizations from 1988 to 2011.
The Report said that the management of Defense Division found irregular during Ministry of Defense made payment of Rs 354.144 million to Pakistan International Airlines Corporation (PIAC) on account of payment of charted flights for evacuation of stranded Pakistanis in Libya on the directives of the Prime Minister. Audit observed that the management did not deduct withholding tax 6 percent the non deduction of Income tax deprived the exchequer of its legitimate receipts.
The Defense Division Department, during audit, presented many written replies about various allegations of audit team but the auditors expressed no satisfaction and suggested to observed defined rules.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/editors-picks/12-Jul-2013/audit-report-detects-rs209m-misspent-in-defence-ministry
July 12, 2013 ASIM QADEER RANA
ISLAMABAD - The mighty bosses in charge of powerful Defense Ministry were caught up by the country’s audit department that found out embezzlement of million of rupees while auditing its accounts during the fiscal year 2011-12, revealed an official document available to TheNation.Auditor General of Pakistan found out embezzlement and irregularities in Defense Division worth of more than Rs. 209 million during audit for the year of 2011-2012.
Auditor General presented the report before the offices of President, Prime Minister and Public Accounts Committee (PAC) for further instructions.
According to the documents, the final budget allocated to the Defense Division for the financial year 2011-12 was Rs. 520,453.18 million including Supplementary Grant of Rs. 14753.913 million against which the division utilized Rs 524802.596 million.
It reveals that most irregularities were discovered in unauthorized payment to Army Welfare Trust (Askari Aviation Private Limited) Rs. 67.94 million in the Ministry of Defense vide 6(11) 2011-f-IIdated 7-03-2011 authorized Army Welfare Trust to provide two passenger aircraft top carry up to 300 passengers each from Tunisia to Islamabad. On successful completion of flight an amount of $790,000 was paid to M/S Army Trust. The audit observed the Prime Minister had approved the evacuation of stranded Pakistanis through charted PIA or non-PIA or commercial flights at government expense but the Army Welfare Trust (Askari Aviation) was not a commercial airline.
The work awarded to Army Trust without calling open tenders. The audit is of the view that undue favour was extended to the Army Trust, therefore, the payment was irregular and un-authorized the document revealed.
According to the document, the Defense Ministry incurred a loss due to irregular expenditure on account of POL charges Rs 2.228 million. According to the audit observation the Defense Ministry officials purchased worth of 2.228 million rupees of POL from PAF base Chakala Rawalpindi, and PNS Mehran Islamabad the registration numbers of the vehicles mentioned in the claim were different from those provided to the audit team. Difference in registration numbers of vehicles could lead to misuse of POL beside inability of audit ascertains the authenticity of the expenditure documents revealed.
Similarly, the Survey of Pakistan (SOP) that is under the administrative control of Ministry of Defense, an amount of Rs 119.980 million in the head of non-reconciliation of receipts is observed in the account of deposit works, received from various organizations from 1988 to 2011.
The Report said that the management of Defense Division found irregular during Ministry of Defense made payment of Rs 354.144 million to Pakistan International Airlines Corporation (PIAC) on account of payment of charted flights for evacuation of stranded Pakistanis in Libya on the directives of the Prime Minister. Audit observed that the management did not deduct withholding tax 6 percent the non deduction of Income tax deprived the exchequer of its legitimate receipts.
The Defense Division Department, during audit, presented many written replies about various allegations of audit team but the auditors expressed no satisfaction and suggested to observed defined rules.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/editors-picks/12-Jul-2013/audit-report-detects-rs209m-misspent-in-defence-ministry
