AGP detects irregularities in ZTBL vehicles' purchase/sales

The Auditor General of Pakistan (AGP) has detected irregularities and mismanagement in purchase and sales of vehicles of million of rupees and in investment in Zarai Taraqiati Bank Limited (ZTBL).
According to audit report-2010-11 of AGP, the Bank procured vehicles valuing Rs 263.120 million (Rs 82.020 million in 2009 and Rs 181.100 million in 2008) during the last two years. Provide detailed justification of incurring huge expenditure on procurement of vehicles to audit.
Similarly, the Bank sold vehicles costing Rs 12.034 million to the Bank executives on book value of Rs 5.401 million before completion of its useful life.
Provide detailed record of procurement of these vehicles to audit. According to the report, book value of investments held in unlisted companies declined to Rs 10.523 million on December 31, 2009 against the face value of Rs 35.788 million. Investments were made without proper evaluation of these companies' activities.
Efforts are required to be made for early disposal of these assets and formulation of proper policy on this activity.
The report also showed that non-mark-up/interest expenses included administrative expenses, which increased to Rs 5.24 billion in 2009 from Rs 4.52 billion in 2008 showing an increase of 15.83 percent. Increase was particularly significant in salaries and allowances, and services rendered by Kissan Support Services (Pvt) Limited (KSSL).
Detailed break-up of the services provided by KSSL may be furnished to audit, and efforts be made to control the increasing trend in expenses.
The report says that Zarai Taraqiati Bank Limited (ZTBL) carries out commercial banking activities, in some of its branches. However, the annual financial statement reflects no commercial activities during the years 2008 and 2009.
Provide detailed justification for the same to audit. Zarai Taraqiati Bank Limited (ZTBL) has also provided interest-free loan of Rs 15 million to its subsidiary KSSL, whereas the Bank has paid interest on the deposits of its subsidiary (KSSL) worth Rs 32.009 million. Provide the detailed justification of provision of interest free loan to audit.