Latest news with #Rs5.29
Business Recorder
2 days ago
- Business
- Business Recorder
Operations of HEC and attached varsities: AGP flags Rs5.29bn malfeasance
ISLAMABAD: The Auditor General of Pakistan has flagged financial irregularities amounting to Rs5.29 billion in the operations of the Higher Education Commission (HEC) and its affiliated universities during the fiscal year 2023–24. According to the Audit Report 2024–25, the largest observation pertains to the retention of Rs4.852 billion by the HEC in its own income account instead of depositing it into the federal government's Treasury Single Account (TSA). This action constitutes a violation of Section 37(1) of the Public Finance Management Act, 2019, which mandates that revenues collected by autonomous public sector bodies under statutory powers must be routed through the TSA. Despite a formal notification from the Finance Division in January 2023 explicitly placing HEC under the TSA regime, the Commission continued managing and utilising these funds independently. Urban regions: Literacy rate elevated to 74.1pc The collections during FY 2023–24 included Rs1.13 billion from attestation and equivalence fees, Rs2.43 billion from Pakistan Education and Research Network (PERN) recoveries, Rs343 million from the Digital Library project, Rs409 million from the Education Testing Council, and Rs163 million from interest income. Audit authorities rejected HEC's justification that these funds were needed to supplement grant-in-aid allocations, asserting that compliance with the law cannot be waived based on internal financial needs. The Departmental Accounts Committee (DAC) instructed HEC to obtain formal clarification from the Finance Division regarding TSA compliance and share all related correspondence with auditors. Beyond the TSA issue, the audit revealed unauthorised disbursements totaling Rs359.617 million made to public sector universities under various development projects, without approval from the Planning Commission or its Development Working Party (DDWP). For instance, COMSATS University Islamabad received an excess of Rs58.7 million under its 'Strengthening of Academics and Research Activities' project, while Hazara University was disbursed Rs29.5 million beyond its approved allocation. Other universities also benefited from unapproved excess disbursements under HEC's Public Sector Development Program (PSDP), all without revised PC-I approvals. The audit concluded that this practice violated established Planning Commission guidelines, undermined fiscal discipline, and raised serious concerns about fund utilization and oversight. The report also uncovered procurement-related violations, with HEC spending Rs35.076 million on IT equipment under the 'Smart Universities' project without adhering to open competitive bidding procedures mandated by Rule 12(2) of the Public Procurement Rules, 2004. Laptops, servers, and other equipment were acquired using direct contracting or limited tendering, despite crossing the financial threshold that requires national advertisement. Critical documentation, such as bid evaluations, comparative statements, and advertisement records, was missing, raising concerns about non-transparency and possible favoritism in procurement processes. In a separate finding, HEC failed to recover Rs7.569 million in liquidated damages from a contractor who delayed the construction of the National Academy of Higher Education (NAHE). Although the contract included a penalty clause of one per cent per day for delays, the Commission neither imposed penalties nor issued formal notices, resulting in a direct loss to the public exchequer due to weak contract enforcement and poor project monitoring. The auditors also pointed out unauthorised foreign travel expenditures amounting to Rs4.055 million, incurred without seeking mandatory approvals from the competent authority. These expenses, related to overseas visits by HEC officials, violated internal rules governing foreign deputations. Similarly, HEC was found to have spent Rs36.878 million on office renovations and refurbishments under the NAHE and 'Strengthening of HEC' projects without preparing or securing approval for a PC-I document, as required by development project regulations. Collectively, these audit findings reveal serious violations of financial, procurement, and legal protocols by HEC and its associated institutions, calling into question the governance and oversight mechanisms within Pakistan's higher education sector. Copyright Business Recorder, 2025
Business Recorder
02-08-2025
- Business
- Business Recorder
Communication ministry & NHA projects: FY25 audit uncovers over Rs5.29bn malfeasance
ISLAMABAD: The Audit Report 2024–25 has uncovered over Rs5.29 billion in financial irregularities and procedural violations in the Ministry of Communications and its key agency, the National Highways Authority (NHA), across various highway infrastructure projects. The highest irregularity, amounting to Rs2.51 billion, was found in the irregular award of work without approval of PC-I. The audit observed that the NHA initiated construction work on certain packages without the necessary planning approval, violating rules under the Planning Commission and the Public Procurement Regulatory Authority (PPRA). This raised questions about both transparency and compliance with federal development guidelines. Another glaring discrepancy involved the loss of Rs551.87 million in Package-1 of the Hakla–DI Khan Motorway, where the work was prematurely awarded before acquiring the required land. The project faced long delays due to land acquisition issues, pushing up costs and causing disruption to the overall CPEC Western Route timeline. NHA projects: Ministry releases Rs56bn, parliamentary panel told In a related observation, Rs511.67 million was paid to contractors due to faulty measurements and misapplication of rates in the same package. The auditors noted that quantities claimed and paid were not properly validated by field staff or supported with engineering estimates. The report also highlights that the NHA suffered a loss of Rs360.91 million due to irregular bidding practices and flawed escalation calculations during another section of the Hakla–DI Khan Motorway project. The tendering process failed to ensure a level playing field and did not reflect prevailing market conditions. An unjustified price adjustment of Rs300.8 million was also recorded, where contractors were awarded price escalations even beyond the allowed notification period. This adjustment was granted without verifying if actual cost changes warranted such increases. Separately, auditors flagged Rs272.17 million in non-adjustment of recoverable advances, where contractors had been paid mobilisation funds that were never deducted from final bills. This reflects serious lapses in internal controls and contract enforcement. An additional Rs224.55 million was lost due to delay-based price adjustments that were granted to defaulting contractors. Despite poor progress, the NHA allowed escalations instead of enforcing penalties under contract clauses. Another audit para noted Rs217.2 million paid for non-scheduled items, which were outside the scope of the original PC-I and were never approved by the competent authority. This was done without competitive bidding and against standard procurement practices. Finally, the auditors revealed Rs344.5 million in undue benefit given to a contractor by ignoring contract clauses related to progress and milestone penalties. The NHA failed to enforce provisions that could have prevented overpayments and encouraged timely completion. Copyright Business Recorder, 2025
