Over Rs 28 million fraud unearthed in NAPWD

The Auditor General of Pakistan has detected irregularities worth over Rs 28 million in the Northern Areas Public Works Department (NAPWD) during 2004-05.
According to the audit report, income tax amounted to Rs 9.938 million for a certain period was not recovered, electricity charges of Rs 5.056 million, Rs 4.349 million were spent on construction material to avoid lapse of funds, Rs 1.24 million were embezzled due to non-recovery of cost of store, Rs 1.364 million hiring charges were not recovered and other small irregularities of Rs 2.92 million were also detected.
The report observed that Water and Power Division Gilgit did not deduct six percent income tax while making payment of Rs 156.642 million in violation of Income Tax Ordinance, 2001,which resulted in a loss of Rs 9.938 million.
Buildings and Roads Division, Hunza/Nagar could not recover electricity charges outstanding since March 1998, causing a loss of Rs 5.056 million to the national exchequer.
Buildings and Road Division, Ghanchi got booked material for various buildings and roads schemes in June 2004. The material was not immediately required and merely paper transaction was made just to avoid lapse of funds.
Moreover, account/consumption of material with reference to technical sanction estimate was also not produced, which resulted in unjustified loss of Rs 4.349 million. Buildings and Road Division, Skardu issued 275 tons bitumen worth Rs 6.572 million to the contractors but bills were adjusted for Rs 3.079 million only, resulting in short recovery of Rs 3.493 million.
Building and Road Division, Hunza Nagar issued stores valuing Rs 249 million to contractors against different indents but recovery of Rs 1.249 million was made from their bills.
Building and Road Division, Skardu issued machinery to contractors without recovering hiring charges due in June 2004. B and R Division made payment of Rs 1.364 million to Water and Power Division, Skardu on this account to utilise available budget grant and the hiring charges were outstanding against the contractors.
In response to observation made in June 2005, the department admitted recovery of Rs 409,460 out of total amount of Rs 1.364 million. Besides, Rs 927,468 was over paid by allowing full rate for un-executed work, Rs 809,900 were paid for irregular purchase of vehicle, Rs 534,000 irregularly paid against non-account of material, Rs 405,030 were lapsed due to non-recovery of penalty on account of late completion of work and Rs 309,425 irregularities were shown in non-credit of public works lapsed deposits to the government.