udit report unearths Rs 35bn irregularities

ISLAMABAD: An audit report of the federal government accounts for 2010-11 unearthed Rs 35 billion massive irregularities and embezzlement in spending the public money with even misuse of money by the Prime Minister Secretariat meant for charities and purchase of presents.
It identified the money spent on breakfasts, lunch and dinners for the employees of the secretariat. It also objected to the funds distributed among bar associations and bar councils by the government, which received strong criticism from various quarters who believed that lawyers’ sympathies were being bought by the then law minister Dr Babar Awan against the judiciary.
The audit report placed in the National Assembly identified 127 cases in the accounts of the federal government, where national exchequer had been caused heavy fraud and fudging payments.
Breakup of the cases showed that there were 11 cases of embezzlement of public money and fictitious and fudged payments, amounting to Rs 2.407 billion.
In 27 cases of irregular expenditure and payment and violation of rules, Rs 6.908 billion cost the exchequer heavily.
The report pointed out 25 cases worth Rs1.519 billion, where recoveries were still pending and in three instances of irregularities pertaining to non-production of record caused a loss of Rs1.356 billion.
Weak internal controls resulted in a loss of Rs 5.358 billion during the audit year and there were 38 cases pertaining to weak financial management, which cost Rs 11.949 billion. 
Besides, there were six cases related to unsound asset management amounting to Rs 1.342 billion during the said year.
Audit report mentioned that Auditor General’s office objected to an unauthorised payment made by the Ministry of Law, Justice & Parliamentary Affairs to 110 bar associations across the country.
The objection prompted the ministry to bring amendment in the Legal Practitioners and Bar Councils Act 1973 (XXXV) of 1973, whereby the federal government in case of Pakistan Bar Council or a bar association and the provincial governments in case of provincial bar councils or bar association will be able to give five grants in aid to the bar councils or bar associations.
However, the report said that despite this amendment, the record was under verification and other relevant record was yet to be presented. “Audit will also monitor the progress on amendments in the legislation,” it said.
The report pointed out that the funds meant for the purchase of presents and distribution of different items or amount in cash to the poor and needy persons was misused for serving breakfasts, lunch and dinners to the employees working at the Prime Minister Secretariat.
An expenditure of Rs 10.48 million was incurred from the head of account ID-0028 –present and charities meant for purchase of present and charity on serving the PM Secretariat employees with food.
However, it pointed out that Prime Minister’s Secretariat, as a corrective measures, with the approval of Finance Division, opened a new head of account namely A-.03963-feeding/diet/food charges for expenditure being incurred on provision of lunch, dinner and tea following the objection raised by the audit.