Rs1.484b audit objections in LDA

LAHORE

Auditor General of Pakistan (AGP) has identified audit objections worth Rs1.484 billion in Lahore Development Authority and its subsidiary bodies TEPA and PHA in its annual report for the year 2014-15.

The report was handed over to members of Punjab Assembly at the Punjab Assembly building here on Thursday. The report stated that weak supervisory and financial controls resulted in unjustified payments, non-recovery and loss to exchequer in millions of rupees.

According to the report, audit objections in LDA are worth Rs769.85 million while audit objections in TEPA and PHA are worth Rs710.77 million and Rs3.41 million respectively.

As per the audit report, 12 audit paras were created against the LDA which are unjustified payments without approval of job mix formula caused a loss of Rs220.37 million, non-recovery of rent of LDA Complex caused Rs193.49 million, irregular/fraudulent allotment of plots out of Chief Minister’s discretionary quota caused Rs108.50 million, non-recovery of cost of land allotted to various departments caused Rs105.01 million, loss due to illegal/unauthorised occupation of LDA land and non-recovery of cost caused Rs55.49 million, overpayment to the contractor due to allowing extra premium caused Rs24.39 million, non-recovery of cost of excess area caused Rs20.12 million, loss due to theft of transformers, electric wire and tube-lights caused Rs18.11 million, over-payment due to sanction of incorrect rate analysis caused Rs8.41 million, less recovery due to showing receipts on account of car wash on lower side caused Rs7.19 million, less recovery of monthly rent from the lessee caused Rs4.77 million and less recovery of share of profit due to addition of inadmissible expenses caused Rs4 million.

As per the audit report, 11 audit objections to TEPA are non-recovery of imbalance rates caused a loss of Rs372.92m, over-payment due to sanction of incorrect rate analysis caused Rs116.99 million, undue financial benefit due to irregular grant of secured advance caused Rs81.73m, loss due to sanction of incorrect rate analysis caused Rs64.36 million, undue financial aid to the contractor due to imbalance rate caused Rs38.29m, over-payment due to inclusion of inadmissible pre-heating charges caused Rs16.53m, overpayment due to higher rate of machinery caused Rs10.93m, non-recovery of cost of salvaged material caused Rs3.14m, unjustified payment without approval caused Rs2.56m, less recovery of income tax caused Rs1.94m and overpayment due to application of higher rate of welding plant caused Rs1.38m.

Similarly, two audit objections raised against Parks and horticulture Authority (PHA) are non-recovery of rent caused Rs2.15m and loss due to non-recovery of withholding tax caused Rs1.26 million.