ISLAMABAD: The Auditor General of Pakistan (AGP) has unearthed 126 cases of financial irregularities in different projects of Water and Power Development Authority (Wapda) during audit of financial year 2023-24.
The audit jurisdiction of DG Audit, Water Resources covers 110 formations of MoWR and its entities having a total expenditure of Rs.236.550 billion and receipts of Rs.103.746 billion for the Financial Year (FY) 2023-24.
Audit coverage for the current audit year comprises 50 formations of MoWR and its entities as per approved Annual Audit Plan 2024-25 which covers an expenditure of Rs.222.402 billion and receipts of Rs.102.624 billion for FY 2023-24.
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In terms of percentage, the planned audit coverage is 94.02% of auditable expenditure and 98.92% of auditable receipts.
This audit report includes audit observations resulting from the audit of expenditure of Rs.209.176 billion and receipts of Rs.102.367 billion for the FY 2023-24 pertaining to 38 formations of MoWR and its entities. This audit report also includes audit observations resulting from the audit of expenditure of Rs.11.991 billion and receipts of Rs.2.067 billion for the FY 2022-23 pertaining to 13 formations.
In addition to this compliance audit report, DG Audit, Water Resources conducted 27 financial attest audits and one impact audit, whereas, one special study has also been planned for execution under Audit Plan 2024-25.
As a result of audit, recovery of Rs.9.586 billion has been pointed out in the report. Recovery effected and verified by Audit from January to December, 2024 was Rs.47.439 million.
Key findings are of AGP are as follows: (i) irregularities in procurement management amounting to Rs.17.617 billion were observed in 6 cases; (ii) irregularities in contract management amounting to Rs.67.790 billion were observed in 62 cases; (iii) financial management related issues amounting to Rs.280. 923 billion have been pointed out in 26 cases; (iv) assets management issues amounting to Rs.1.002 billion million have been pointed out in 06 cases; (v) management of accounts with commercial banks related issues amounting to Rs.5.866 billion were observed in 03 cases; (vi) HR/employees related issues amounting to Rs.2.035 billion were raised in 02 cases;(vii) value for money and services delivery issues amounting to Rs.3.265 billion was observed in 01 case; and (viii) other miscellaneous issues amounting to Rs.106.448 billion were reported in 20 cases.
Presently, Wapda is executing three large scale projects on Indus River, one each on Swat, Kurram and Gaj rivers respectively. Diamer Bhasha Dam Project (DBDP) having gross storage capacity of 8.10 Million Acre Feet (MAF) and power generation capacity of 4,500 Megawatt (MW) is being constructed at 315 Kilometers (KMs) upstream of Tarbela Dam. Dasu Hydropower Project (DHPP) with power generation capacity of 4,320 MW is being constructed at 74 KMs downstream of DBDP.
Tarbela 5th Extension Hydropower Project (T5HPP) having power generation capacity of 1,530 MW is being constructed at existing Tarbela Dam. Mohmand Dam Hydropower Project (MDHP) having gross storage capacity of 1.24 MAF and power generation capacity of 800 MW is being constructed on Swat River at 5 KMs upstream of Mohmand District. Kurram Tangi Dam Project (KTDP) having feeder tunnel discharge capacity of 633.40 cusecs and power generation capacity of 18.40 MW is being constructed on Kurram River at 32 KMs north of Bannu District, whereas, Nai Gaj Dam Project (NGDP) having gross storage capacity of 0.30 MAF is being constructed at 65 kms upstream of north-west of Dadu city in Sindh.
Major issues related to procurement, contract, financial and assets management were brought to the notice of the management for taking timely actions.
Discrepancies in bid evaluation process, violation of Public Procurement Regulatory Authority (PPRA) Rules, 2004 and non-adherence to the contract clauses were reported. Non-adherence to austerity measures of Finance Division and misuse of vehicles were also highlighted. Further, following actions were also committed by the management during the meetings for the improvement of systems and controls.
On instance of Audit, the management accepted to ensure recovery/adjustment of Rs.501.964 million from the contractors. The management agreed to take steps for strengthening of internal controls and procedures and assured to take corrective measures in line with contract clauses besides addressing the irregularities pointed out by Audit.
Similarly, in order to overcome the shortage of water in Karachi city, the Greater Karachi Bulk Water Supply Scheme (K-IV) was planned for supply of water to Karachi city from Kinjhar Lake by the Government of Sindh.
Later, the federal government under arrangement with GoS took up implementation of the project as part of Prime Minister’s Package for Karachi and directed Wapda to take over the responsibilities for execution of the project since January, 2021. The construction under Phase-I was aimed at supply of 260 million gallons’ water per day which was divided into eight packages. The contracts for these packages were awarded during May, 2022 to September, 2022 with completion dates of up to February, 2024. However, the management failed to achieve 100% physical progress of this project of vital importance despite lapse of contractual completion period.
Copyright Business Recorder, 2025