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13 Billion Rupees In Irregularities And Embezzlement Found In WAPDA Projects For Fiscal Year 2018-19

ISLAMABAD: The Auditor General of Pakistan (AGP) traced around Rs 13 billion in irregularities and embezzlement in different projects of Water & Power Development Authority (WAPDA) for the fiscal year 2018, according to documents available with Naya Daur Media. The revelations from the documents will be presented in the Public Accounts Committee (PAC) this month.

The documents mentioned that Rs. 5,626.78 million in unjustified payments were found in WAPDA affairs due to awarding of contract without survey and detailed designing in a project. The audit stated that the commencement of work without finalization of detailed design/drawing was not justified and contrary to the decision of National Economic Council (NEC).

The audit documents further found Rs 1,968.45 million and Rs 395.73 million of embezzlement in WAPDA affairs due to non-renewal of expired performance guarantees. And the audit contended that performance guarantees were required as per provisions of the contract.

The Auditor General of Pakistan traced Rs 1,843.03 million irregularity in excess of payment to the contractors beyond the provisions of BOQ (Bills of Quantity) and the audit comments noted that the abnormal increase in BOQ was due to unrealistic estimations of the work for which no responsibility was fixed.

Another Rs 123.80 million embezzlement were found by the AGP in another project of WAPDA due to excessive payment to the contractors beyond the provisions of BOQ. The audit desired the reasons/justification for the payment of general items amounting to Rs.133.40 million against the approved cost of Rs. 9.60 million.

The audit documents further found Rs 1,469.44 million embezzlement as WAPDA failed to recover liquidated damages from the contractor Frontier Works Organization (FWO) in two projects awarded.

The audit documents further revealed that the WAPDA failed to recover liquidated damages of Rs 313.45 million and Rs 973.70 million from contractors. The audit stated that the contractor failed to complete the work within stipulated as well extended period of completion time – and thus the liquidated damages should be recovered.

The Auditor General of Pakistan further found an unjustified expenditure of Rs 431.97 million without provision of BOQ. The audit contended that the replacement process initiated on technical grounds by the consultant (M/S Techno) was not required.

Another loss of around Rs 108.23 million to the national exchequer was found by the AGP due to non-completion of work in the time-frame mentioned in the law.

In another WAPDA project, the audit officials found another unjustified payment of 3,886.37 million rupees paid to the contractor on account of excess execution of BOQ in a project not named in the document. The audit directed the authorities to provide justification for this payment.

The audit documents mentioned that due to forced shutdown, a loss of Rs 4,580 million occurred to the national exchequer – which was never justified and the audit directed the officials to justify this loss.


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