2018 general elections: ECP makes 'wasteful expenditure' of over Rs 367 million: AGP

The Election Commission of Pakistan (ECP) made 'wasteful expenditure' of more than nearly Rs 367 million in last year's general elections, reveals the Auditor General of Pakistan (AGP's) report for 2018-19.
The audit report highlights irregularities amounting to millions of rupees in the annual account spending of the ECP, including misappropriation of funds, mis-procurement of the related material, wasteful expenditure and other serious financial violations in disregard to the prescribed rules of PPRA (Public Procurement Regulatory Authority).
According to the report, the management of the ECP procured election material including transparent ballot boxes and foldable screened off compartments of Rs 788.539 million for general election 2018. The details of this procurement suggest that the ECP procured 202,239 ballot boxes for Rs 1,272 per item and spent Rs 257,248,008; and procured 354,430 foldable screened off compartments for Rs 1,499 per item and spent Rs 531,290,570.
The AGP observed, "against the shortfall of 87,077 transparent boxes, the management procured 202,239, which resulted in excess purchase of 115,162 boxes and incurred a loss of Rs 146.486 million. Similarly, against shortfall of 207,478 foldable screened off compartments, the management procured 354,430, which resulted in excess purchase of 146,952 screens and sustained a loss of Rs 220.341 million."
The AGP further observed, "audit is of the view that procurement of additional election material in excess of requirement has resulted in loss of Rs 366.827 million to the government."
ECP's mis-procurement of transparent ballot boxes amounted to Rs 257.248 million, which caused a loss of Rs 28.920 million to the national kitty.
The report states that the management of ECP purchased transparent ballot boxes from M/s Arian International at a cost of Rs 257.248 million. The audit observed: "According to single stage two envelopes procedure the lowest financial bid out of the technical responsive firms was required to be accepted. The financial bid of M/s AFT Farooq was Rs 228.328 million whereas the contract was awarded to M/s Arian International at Rs 257.248 million which resulted in loss of Rs 28.920 million."
The audit maintained that PPRA rules were violated and "undue favour was given to the supplier."
Another glaring irregularity pointed out in the AGP report includes non-depositing of shares of the ECP into government treasury realised through cellular mobile phone companies which caused loss of Rs 108.166 million to the state.
Non-provision of audited statements/vouched accounts of funds re-appropriated to provinces for payment to returning officers/district returning officers for the general elections 2018 amounted to Rs 533.025 million, the audit noted.
Unauthorised payment of Rs 10.160 million honorarium to the ECP employees, irregular expenditure of Rs 38.676 million as diet/extra charges to the ECP officers/employees, overpayment of Rs 7.775 million as transport charges to the provinces and unauthorised expenditure of Rs 9.890 million on entertainment, gifts, conferences, seminars, symposia were some other serious financial offences made by the ECP management in the financial year 2018-19, according to the audit report.