PAC Expresses Concern Over Rs12.11bn Irregular Spending by Balochistan C&W Department

QUETTA: A meeting of the Public Accounts Committee (PAC) of the Balochistan Assembly was held in the new committee room of the Balochistan Provincial Assembly to consider audit paras of the Communications and Works (C&W) Department included in the Audit Report 2023-24. The meeting was chaired by PAC Chairman Asghar Ali Tareen.

Committee members Wali Muhammad Norzai, Rehmat Saleh Baloch, Zamarak Khan Achakzai, Fazal Qadir Mandokhail, Mir Mohammad Khan Lehri and Ghulam Dastagir Badini, Director General Audit Shuja Ali, Additional Accountant General Balochistan Noorul Haq, C&W Secretary Babar Khan, PAC Special Secretary Siraj Lehri, Additional Law Secretary Saeed Iqbal, C&W Superintending Engineers, Chief Engineers, Executive Engineers and other officials attended the meeting. The committee conducted a detailed review of the department’s financial and audit matters.

According to the report, the C&W Department incurred irregular expenditure of over Rs12 billion and 11 crore during the 2023-24 fiscal year. Chairman Asghar Ali Tareen and committee members expressed deep concern, saying that irregular expenditure of such a large amount by the department in a single fiscal year raises questions about its performance. On another para involving alleged irregularities of over Rs13 crore, the committee directed 100 per cent recovery.

Objections over project director system and lapsed funds

During the meeting, the committee reviewed over Rs44 billion, 42 crore and 71 lakh allocated to the department under development and non-development heads in the 2022-23 fiscal year, and expenditure of over Rs41 billion and 18 crore from those funds. According to the audit report, the department failed to use over Rs3 billion and 24 crore in a timely manner, and this amount lapsed.

Committee members expressed concern, saying that if allocated funds cannot be used in a given fiscal year, they should be surrendered in good time so that the money can be spent on other essential development projects and public resources are not wasted.

Committee Chairman Asghar Ali Tareen expressed reservations about the system of appointing Project Directors (PDs) for ongoing department projects, saying the committee does not support this system. The PAC directed that detailed reports on all projects being run under Project Directors be presented before the committee. He said that when the relevant department already exists, the need for and justification of separate Project Directors to complete projects should be clear.

Committee member Mohammad Khan Lehri said that when projects are launched through the Planning and Development Department and the C&W Department, responsibility should be handed to the relevant department and implementation should also be carried out through it, rather than appointing separate Project Directors unnecessarily. He added that some projects, when left incomplete, are ultimately handed back to the relevant department, which raises questions about the usefulness of this system.

Committee members pointed out that appointing Project Directors leads to additional burdens on the public exchequer, including the purchase of official vehicles, high salaries and the recruitment of extra staff. In some projects, Project Directors are appointed without adequate staff and later recruit staff on their own level, which increases unnecessary expenditure. The committee called for comprehensive details on this matter.

Excess payments and decisions on special audit

The PAC ordered a special audit of various projects in Nasirabad, Nushki, Zhob and other districts, as well as the Kachhi Plain Water Supply Scheme and the Balochistan Livelihood and Entrepreneurship Project (BLEP).

Under audit para 4.2.1, the meeting noted excess payments of Rs9 crore, 3 lakh and 41 thousand to contractors at rates above those fixed and approved, and due to errors in quantity calculations, in various building divisions during the 2021-22 and 2022-23 fiscal years.

According to the audit report, the relevant offices had been directed to effect recovery and present the necessary records to audit, but they had not informed the audit of progress until the final completion of the report. The committee expressed serious concern and directed the department to present complete details of the excess payments, necessary records and the status of recovery, and to ensure 100 per cent recovery of the loss caused to the public exchequer.

The meeting also discussed audit objections in construction projects in various districts, including Sherani, and the failure to implement them. Under audit para 4.2.2, an irregularity of Rs4 crore, 4 lakh and 14 thousand was pointed out due to payments for construction work exceeding the quantities stated in approved PC-Is, estimates and agreements in various building divisions. The committee directed the relevant officials to ensure 100 per cent recovery on this para within ten days.

The committee made clear that adherence to approved rates, quantities and agreements must be ensured in all government development projects, and that complete records and transparency must be maintained for every payment made from the public treasury. It said timely implementation of audit objections and recovery of funds from those responsible were essential.

Further action on other audit paras was deferred because the department did not complete preparations or present the required records. The committee decided that the meeting to review the remaining audit paras will be held on November 30 at 10am.