Hajj operations massive embezzlements, irregularities detected

Auditor General of Pakistan (AGP) has detected massive embezzlements, irregularities and mismanagement in Hajj Operations during 2009 and 2010. According to Special Audit Report on Hajj Operation 2009-2010 Ministry of Religious Affairs, a special audit was carried out by an audit team constituted by Auditor General of Pakistan (AGP).
The Audit team visited Directorate General of Hajj, Jeddah, and other offices of the Ministry in Saudi Arabia to obtain and scrutinise the record related to the Hajj operation. The key audit findings are as follows: the Audit Report revealed that inefficiency in utilisation of Hajj quota in 2009 resulted in a lapse of 3,456 seats under the Government Hajj Scheme. As many as 5,000 seats were transferred during Hajj 2010 from Government Hajj Scheme to Hajj Group Organisers (HGOs) without any plausible reason and justification.
Contrary to Hajj Policy, 1794 seats were kept out of the balloting process during Hajj 2010. Frequent change of composition of Hiring Committee adversely affected the pace of hiring during Hajj 2010. An expenditure of Saudi Riyal 1.586 million (Rs 36.480 million) was incurred on special Hajj contingent of 248 pilgrims contrary to Hajj Policy 2010.
Prescribed distance of 2,000 meters was not maintained in the hiring of buildings at Makkah during Hajj 2009 and Hajj 2010 as 49 and 119 buildings, respectively, were hired beyond maximum limit of 2000 meters. The hiring of all 212 buildings during 2010 was carried out by 2-3 persons instead of a seven-member Hiring Committee designated for the purpose under Hajj Policy 2010.
During Hajj 2009, out of a total 259 hired buildings, 164 buildings (63 percent) were hired from agents; whereas during Hajj 2010 out of a total 212 hired buildings, 82 buildings (39 percent) were hired through agents. During Hajj 2009, out of a total 259 hired buildings, 150 buildings had capacity of less than 200 persons, whereas the number of such buildings in 2010 was 82 out of a total of 212 hired buildings.
During Hajj 2009, in 79 hired buildings, the capacity of 985 persons remained under-utilised; whereas in Hajj 2010, out of a total of 212 hired buildings, the hired capacity of 37 buildings remained under-utilised. In this way, an amount of Saudi Riyal 5.179 million was spent on the unused accommodation. Out of total selected data of 375 hired buildings of Hajj 2009 and 2010, 27 buildings (15 buildings in 2009 while 12 in 2010) were hired at an average annual rent increase of 35 percent approximately.
Four buildings were hired injudiciously as one of them was under construction for which a payment of Saudi Riyal 5.250 million was made as a 30 percent advance. In the other three buildings, possession could not he obtained despite a payment of SR. 10.107 million as advance.
An amount of Saudi Riyal 8.192 million was spent on the hiring of accommodation over and above the actual requirement in Hajj 2009. Imprudent contract management resulted in non-deduction of a penalty of Saudi Riyal 0.591 million and an advance payment of SR. 13.748 million over and above permissible limits. Inadequate transport services to pilgrims staying in buildings at a distance beyond 2,000 meters created hardships and inconvenience.
There was a lack of transparency and objectivity in the hiring of pilgrim accommodation at Madinah. There was a poor service delivery both by seasonal staff and Khuddam-ul-Hujjaj. A lack of co-ordination and interaction amongst various stakeholders and government agencies resulted in confusion and inordinate delays in the hiring process.