The Auditor General of Pakistan has detected financial irregularities, embezzlement and misappropriations worth over Rs 863.39 million in telecommunication sector. According to the Audit Report 2009-10 on the accounts of telecommunication sector, a loss of Rs 151.78 million was suffered due to irregular procurement of Fixed Wireless Terminal (FWT).
The firm procured 35000 FWT sets at Rs 4,921.40 per piece amounting to Rs 172.25 million from Korean company through its local agent in Pakistan. In this process, neither the tender was called nor the work order received from the authorities. When the supply was received, the authorities were contacted but they refused to purchase the same saying that these sets were no longer required.
On the refusal, the management sold out 16958 sets at Rs 1,206.89 to different operators in order to clear the stock against the purchase price of Rs 4,921.40 per set. Resultantly, it sustained a loss of Rs 151.78 million. In another audit para, the report revealed that the authorities faced the loss of Rs 48.544 million due to irregular procurement of equipment.
The management inked a contract on June 27, 2007 for supply of Communication System Monitoring & Technical Support Center equipment at a cost of Rs 57.95 million. The management awarded the work to a Chinese firm and paid Rs 48.54 million without calling tenders. The supplier failed to supply the required equipment.
Resultantly, it sustained a loss Rs 48.54 million. Similarly, it faced the loss of 34.812 million due to procurement of extra equipment exceeding the actual requirement. The TIP also faced the loss of Rs 10.912 million on account of motorcycle spare parts.
In another audit para, the report exposed Rs 10 million financial irregularity in the tariff body. The body granted an amount of Rs 10 million for the construction of its headquarters building with the justification to complete the work upto March 31, 2009 on the recommendation of the consultant without any further delay.
The construction work was started in 2005 and its completion target was 728 days. But the contractor failed to complete the work within scheduled time. The financial assistance paid in February 2009 was not covered under the provisions of the contract agreement and rules. According to the audit report, there are Rs 19 million irregularities and loss in the authority and more than Rs 110 million in other entities. Similarly, there are more such paras of loss, irregularities and embezzlement in the report.
