Audit reveals irregular purchase of vehicle by Erra

ISLAMABAD—Auditor General of Pakistan has pointed out financial irregularities over 120 millions in the accounts of Earthquake Rehabilitation and Reconstruction Authority (ERRA) on account of illegal purchase of vehicles, irregular payment of advances to motor companies and payment of mobile phone bills beyond prescribed limits to officers and officials.
Audit report for the year 2006-07 issued by auditor general of Pakistan revealed that ban was imposed on the purchase of Toyota PARADO Land over 3000 CC in ERRA board meeting held on May, 8, 2006. In defiance of board’s decision and all rules and regulations this vehicle was purchased at the cost of Rs 4095000 without bidding from Indus Motors.
Over Rs 58736000 were paid to Toyota Rawal Motors Islamabad to purchase 16 double cabin and 5 single cabin vehicles. 21 vehicles were to be provided by the company within 3 months but only 12 vehicles have been supplied so far. The company is utilizing Rs 23684000 pubic money for personal gains.
The mobile phone bill subsidy limit was proposed to be fixed Rs 3000 for chairman, Rs 2000 for members each and Rs 750 and Rs 1000 for the officers of grade 18 and 19 respectively in the ERRA council meeting held on November, 9 2005 It was also decided to send all these proposals to ministry of finance and finance division suggested to refer the matter to cabinet.
ERRA in violation of these proposals allowed the facility of payment of bills amounting to Rs 6000 to chairman , Rs 4000 to members, Rs 3000 to officers of grade 19 or officers of their equal status. Rs 2500 for officers of grade 17 or 18 or officers of equal grade and Rs 2000 for employees of grade 16,.
ERRA made advance payment of Rs 17319500 to Pak Suzuki Motors, Rs 9293000 to Indus Motors, Rs 710000 to Hino Pak and 23684000 to Toyota Rawal Motors for purchase of vehicles. Rs 36000 were paid to ERRA media chief and Rs 24000 to deputy director on account of TA/DA claims.
220 posts were filled in without obtaining prior permission from finance division. ERRA explained these recruitments were made with the permission of the then prime minister.

—APP