To Be Replied Within 24 Hours

To be replied within 24 hours
OS No.05
Mis Procurement of Elevator involving Rs. 25600000/-

Non obtaining of Revised Performance Security Rs. 2907008/-
DATA OF WORK
Work Construction of Petroleum House at G-5/2 Islamabad (SH: Elevators Works).

NIT Rs. 29070076/-, Premium 6%, above Contract Cost Rs. 29070076/-. Agreement
No. CEN/105 of 2010-11. DOS 16.06.2010. TS .28247300/- WIP 9 th Running bill of Rs.
431705/-paid to contractor M/S M.Z Awan vide CV No. 03 dated 05.06.2015 and MB
No. 699/p-93[W.D Rs. 27835000/-]
OBSERVATION STATEMENT
According to PPRA-2004 Rule-10, Specification shall allow the widest possible
competition and shall not favour any single contractor or supplier nor put other on a
disadvantage. Specification shall be generic and shall not include reference to brand
name, model, number, catalogue number or similar classifications. However if the
procuring agency is convinced that the use of or a reference to a brand name or a
catalogue number is essential to complete an otherwise incomplete specification,
such use or reference shall be qualified with words or equivalent, Rule-04
Procuring agencies, while engaging in procurements, shall ensure that the
procurements are conducted in a fair and transparent manner.
Contrary to above the Executive authority while inviting bids of work reference to
brand name and model number were included in the description of BOQ of
item No., 01,2 and item No. 03 which are not generic. Audit holds that action taken
by the Executive authority is violation of above referred rule and resulted into mis-
procurement of elevator Rs. 25600000/- which may please be justified and to be
got regularized from Ministry of Finance Division under report to Internal Audit.
ii). It was noticed that performance Security amount to Rs. 2907008/- of 10%
contract agreement as per clause provision was provided by the contractor which
was expired on 10-03-2013 thereafter no further revised Performance Security was
obtained by the department till to date i.e 13.09.2015, and payment upto 9 th
running bills have been made to contractor. Non obtaining of revised performance
security needs to be justified beside action taken against at fault under intimation
to Internal Audit.
Central EM-I Islamabad

(Farhat Ullah)
Audit Officer (IA) Pak.
PWD
OS No.06
Unjustified excess expenditure due to execution of abnormal excess
quantity of 4 Core PVC against BOQ quantity Rs. 478484/-
DATA OF WORK
Work: Construction of Petroleum House at G-5/2 Islamabad (SH: Elevators Works).

NIT Rs. 29070076/-, Premium 6%, above Contract Cost Rs. 29070076/- Agreement
No. CEN/105 of 2010-11. DOS 16.06.2010. TS .28247300/- WIP 9 th Running bill of Rs.
431705/-paid to contractor M/S M.Z Awan vide CV No. 03 dated 05.06.2015 and MB
No. 699/p-93[W.D Rs. 27835000/-]
According to BOQ 85 Meters P/L 4 Cores PVC @ Rs. 1850 per Meters of Rs.
157250/- was required to be excavated under items No. 07 respectively. Whereas
according to relevant MB No. 699/p-93 (9 th Running bill), quantity of item was
abnormally increased to 329 Meters against BOQ quantity of 85 Meters, without any
justification and led to excess expenditure of Rs. 478484/- [329-85=244. @ Rs. 1850
per Meters. + Premium 06%], which may please be got regularized from the
Director General or be got recovered from source at fault under intimation to
Internal Audit.

(Farhat Ullah)
PWD
OS No.07
Unauthorized expenditure incurred on Replacement/Dismantling of

electrical items Rs. 1512286/-
In terms of clause 15 of additional terms and conditions of contract all material

obtained in the work of dismantling/replacement etc will be considered Govt:
property and issued to the contractors (if the requires the same for their own use on
rates approved by the S.E if their materials are not required by them they will be
disposed off in the interest of Govt.
During security of cash vouchers and other record of EM-I PPWD Islamabad, it was
observed that funds for Minister Enclave F-5/2 and VIP Houses Islamabad have been
incurred during June 2013 on dismantling and replacement of electrical item i.e AC
Splits, Cooking Range Ceiling Fan, but old items (which replaced with new ones)
have neither been taken on dismantled register nor disposed of and nominal credit
were given. However for disposed of such old items approval has not been obtained
from S.E concerned which is not only infringement of above referred agreement
clause, but also loss to Govt property. A few instances are shown in the enclosed
ANNEXURE under which various items were replaced with new one and their
dismantled was not taken in register, which needs to be justified under report to
Internal Audit.
CV No & D.O.S & MB No & Description of Amount

date D.O.C Contractors materials
21.8.2.14 24.6.13 to 222 M/S A.R. Cooking Range, Rs. 940977/-
8.7.13 Brother Geyser, AC Split
1.5/2 tons
Ceiling fan Exhaust
fan.
134 26.6.13 222 M/S Cooking Range, Rs. 519774/-
26.06.13 A.R. Brother Geyser, AC Split
1.5/2 tons
Ceiling fan Exhaust
fan.
58 18.6.13 to 19- 347 M/S Touch Replacement of AC Rs. 51535/-
13.06.13 6-13. Engineering Splits 2 tone.
Total Rs.
1512286/-

(Farhat Ullah)
PWD
OS No.08
Unauthorized expenditure incurred on repair of vehicles Rs. 260676/-
As per instruction on each Measurement Book all measurement for work

done by the contractor or by the department labour and material received
recorded in Measurement Book.
The Security of Cash Vouchers revealed that payments of Rs. 260676/- were made
to officers/officials concerned as details below on account on repair of various
vehicles.
CV No & date Description To whom paid Amount

04 05-06-2014 Repair of Vehicle GW-836 Ahmed Ali S/E Rs. 25400/-
16 21-10-2014 Repair of Vehicle GC-025 Rehmatullah APS Rs. 57202/-

to Minister.
43,47,53,50 Repair of Vehicle GC-025, M. Yousaf & Zafar Rs. 49443/-

26-01-2015 GW-836, RIM-2077 Ali S/E & AEE
37 15-01-2015 Repair of Vehicle GC- M.Afzal F/M Rs. 35340/-

025,GW-836, TGB-3325,
GE-836, GE-041.
31,32,35,36 Repair of Vehicle GU-599, M.Zafar Ali Khan Rs. 93291/-
30-05-2015 GU-599. AEE.
Total Rs. 260676/-

The above payments was irregular on the following ground, which may please be
justified or recovery be effected from concerned officers under intimation to Audit.
a). Direct payment to the officers/officials was not permissible as the amount
required to be paid to the contractor/vendor directly.
b). No estimate for repair/purchase was prepared/approved.
c). Measurement Books does not indicate detail of measurement quarter wise.
Mode of record entry shows as repair of vehicles.
d). Direct payment to AEE and S/E caused evasion of tax (income & sales).

(Farhat Ullah)
PWD
OS No.09
Doubtful payment of POL/Repair of vehicles executed six years ago-Rs. 1096056/-
The scrutiny of Cash Vouchers as detailed below revealed that a payment of Rs.
1096056/- was made to Pakistan State Oil and M/S Shafiq on account of POL/CNG
drawn to different vehicles and their repairs under the Pool of EM-I Islamabad after a
period of six years without any justification and approval of Finance Division as after
lapse of three years no claim can be entertained and paid without approval of
Finance as required under Federal Treasury Rules, Which need justification or
regularization from Ministry of Finance under intimation to Internal Audit.
CV No & Description of item Paid to Month Amount
dated
82 30-04-2015 POL/CNG to different P.S.O Islamabad 01/2009 157629/-
vehicles.
vehicles.
vehicles.
vehicles.
36 14-01-2015 Repair of different M/s CH: Shafiq 12/2009 292815/-
vehicles.
Total 1096056/-
(Farhat Ullah)
PWD
OS No.10
Irregular and doubtful repair of vehicle amounting to Rs. 3519415/-
In terms of S. No. 8 (5) of Finance Division O.M. No. F.3(4) EXP.III-2000 dated
30.06.2000, under Repair and Maintenance of Transport, Head of the Department is
empowered to incur expenditure up to a limit of Rs. 25,000/- at any one time to one
or any number of vehicles used by the Department. If the powers have been
delegated to the Executive Engineer even then Executive Engineer is not
empowered to utilize said power beyond said limit of Rs. 25,000/-.
But during the course of Internal Audit for the year 2013-14 & 2014-15, it was
observed that an expenditure of Rs. 3519415/- (ANNEXURE) was incurred on
account Repair of Vehicles, which is beyond the limit of Rs. 25,000/-.
Moreover relevant Log book and Movement register were also not produced Internal
Audit for verification of said repair of vehicle, despite requisition and repeated
requests. Therefore the repair of the vehicle seems to be doubtful also.
The expenditure of Rs. 3519415/- is, therefore, termed as irregular and doubtful and
violation of above referred instructions of Finance Division. Hence the expenditure of
Rs. 3519415/- may please be got regularized from Finance Division or the Director
General Pak. PWD, under intimation to Internal Audit.

(Farhat Ullah)
PWD
OS No.01
MIS PROCUREMENT OF LIFTS INVOLVING RS. 23981576/-
DATA OF WORK
Work: Construction of Statistics Division and its attached Department at Mauve Area
Islamabad (SH: Installations of Lifts). NIT Rs. 18296500/- , Premium 37%, above
Contract Cost Rs. 25066205/-. Agreement No. CEN/124 of 2011-12. DOS
28.05.2012. Original TS 19787865/- Revised TS. 25066205/-. WIP 7 th Running bill of
Rs. 2009516/- paid to contractor M/S Islamabad Industrial & Training Co vide CV No.
12 dated 18.06.2015 and MB No. 377/P-76. [W.D Rs. 23981576/-].
According to PPRA-2004 Rule-10, Specification shall allow the widest possible
competition and shall not favour any single contractor or supplier nor put other on a
disadvantage. Specification shall be generic and shall not include reference to brand
name, model, number, catalogue number or similar classifications. However if the
procuring agency is convinced that the use of or a reference to a brand name or a
catalogue number is essential to complete an otherwise incomplete specification,
such use or reference shall be qualified with words or equivalent, Procuring
agencies, while engaging in procurements, shall ensure that the procurements are
conducted in a fair and transparent manner.
Contrary to above the Executive authority while inviting bids of work reference to
brand name and model number were included in the description of BOQ of
item No., 01,2 and item No. 03 which are not generic. Audit holds that action taken
by the Executive authority is violation of above referred rule and resulted into mis-
procurement of elevator Rs. 25600000/- which may please be justified and to be
got regularized from Ministry of Finance Division under report to Internal Audit.
ii). It was noticed that performance Security amount to Rs. 2907008/- of 10%
contract agreement as per clause provision was provided by the contractor which
was expired on 10-03-2013 thereafter no further revised Performance Security was
obtained by the department till to date i.e 13.09.2015, and payment upto 9 th
running bills have been made to contractor. Non obtaining of revised performance
security needs to be justified beside action taken against at fault under intimation
to Internal Audit.

(Farhat Ullah)
PWD
OS No.02
Excess expenditure due to award of works on higher premium Rs.

6220810/- Recoverable amount from contractor on reduction of work
done.
Date of work
Work: Construction of statistics Division and its attached
department at mauve area Islamabad (SH Installation of lifts) NIT
Rs. 18296500/- Premium 37%, above contract cost Rs. 25066205/-
Agreement NO. CEN/124 of 2011-12 DOS 28.5.2012 Original TS
19787865/- Revised TS. 25066205/- WIP 7th Running Bill of Rs.
2009516/- Paid to Contractor M/S Islamabad Industrial & Trading co
Vide CV No. 12 dated 18.5.2015 and MB No. 377/- P-76 { W.D Rs.
23981576/-}
Observation statement
i) The scrutiny of record revealed that a work construction of
statistics Division and its attached department at mauve
area Islamabad (SH Installation of lifts) was awarded to M/S
Islamabad Industrial & Trading co Vide his letter No. CEN/W-
3/1427 DATED 18.5.2012 with 37% above on work on the
basis of revised technical sanctioned estimate, whereas the
original T.S was prepared 3% above on fluctuation basis,
resulting excess premium has been allowed to contractors
and to extend undue benefit to the contractor of excess
expenditure of Rs. 6220810/-{NIT Rs. 18296500/- x 37%(-)
3%} which may please be justified or be got regularized
from Finance Division or the Director General PAK PWD
under intimation to internal.
ii) The executive authority while inviting bids of work reference to
position of stop 6/6 was mentioned in BOQ/TS, while scrutiny of
above record it was noticed that position of step was reduced to 5/5
instead of 6/6 and payment made to contractor on the basis of
reduction of position of stop, but the recovery on account of
reduction of stop was not effected from contractor. The executive
Engineer started in this regard that the case regarding recovery on
account of reduction of stop was sent to high Authorities. The
results of recovery are still awaited. Audit holds that recovery may
immediately be calculated and made from contractor under report
to internal audit.

(Farhat Ullah)
PWD
OS No.03
Unauthorized Re-imbursement of Salary of Work Charged Staff Rs. 136.85

Million
In terms of instructions of Ministry of Housing & Works , Maintenance Expenditure
on A133-Building and Structure Should have been incurred in accordance with
following proportion:-
i. work by contract 65%
ii. Work charged Staff 25%
iii. Material 10%
The scrutiny of monthly account for the month of June 2013, to June 2015
revealed that expenditure on work by contract, work charged staff and
material were incurred as under during the year 2014-15.
i. Work by contract Rs 75040000/- 5.45%
ii. Work charged saff Rs. 13685600/- 94.55%
Total Rs Rs. 144360600/- 100%
From above mentioned detail, it is evident that 94.69% expenditure was incurred on
work charged staff instead of 25% which led to irregular expenditure of Rs.
136856600/- on work charged staff during 2014-15.
It is therefore, irregular expenditure of Rs. 136856600/- incurred on work charged
staff may please be justified or be got regularized from Ministry of housing & Works
under intimation to internal Audit.

(Farhat Ullah)
PWD
OS NO. 4
Irregular and doubtful payment of work done executed six year ago Rs. 90500/-
doubtful payment of Rs. 3519415/- without provision of budget allocation
Date of work
Work :- Special Repair Heavy T & P (Repair of vehicle Nos. Leg-1296, GU-414, GE-
650, GP 3788, IDG-3230 and GE-164} For the year 2009-10
Agreement No. Nil of 2009-10
Contractor M/S Shafiq
Date of Start of work 15.12.2009 and date of completion 29.12.2009
First and Final bill of Rs. 90500/- was paid vide CV No. 36 dated 14.1.2015.
Observation Statement
i) The scrutiny of CV No. 36 dated 14.1.2015 revealed that a payment of Rs.

90500/- was made to contractor under IST & Final bill after a period of six
years without any justification and approval of Finance Division as after
lapse of three years no claim can be entertained and paid without
approval of finance as required under Federal Treasury Rules.
ii) Further scrutiny of monthly account for the Month of June, 2013, 2014 &
2015 revealed that an expenditure of Rs. 3519415/- Annexure was
incurred on heavy T & P but no allotment of funds was shown against said
head of account i.e. Heavy T & P which led to doubtful expenditure of Rs.
3519415/- the doubtful expenditure needs justification or regularization
from Ministry of Finance under intimation to internal audit. Moreover
source of funding, from which above doubtful expenditure was met, may
also please be intimated to internal Audit.
OS NO. 11
Non Production of log Book Vehicle NO. IDG-3182
During Scrutiny of list of Govt vehicles provided by Executive Engineer EM-1

Islamabad on audit period, it was noticed that 26 vehicles were under the
pool of Executive Engineer for repair and maintenance. The vehicle No. IDG-
3182 was shown attached with Deputy Director Budget and Accounts PAK
PWD. The record relating to vehicle log book was called for, but not produced
and stated by Executive Authority that the DY: DBA has been transferred in
May 2015 and Log book of vehicle would be produced to Audit. As far as
vehicle concerned, executive Staff that the vehicle is now under used by
Assistant Director Budget & Accounts, but their evidence regarding
handing/Taking over was not shown to Audit stated it. Hence the Audit of
expenditure incurred during the Year 2013-14 and 2014-15 could not be
carried out. It is requested that the where about of vehicle and their record
may please be produced to internal Audit for scrutiny.
OS NO. 12
Unauthorized Drawl of POL/CNG By officers/Official to vehicle Rs. 1767707/-
In terms of Para 9 cabinet Division staff car 1980, the use of staff car shall not be
allowed to an officer who is in receipt of conveyance allowance under
Supplementary Rule 25. Para 11 of cabinet division use of staff car of department by
Administrative Division. A staff can belonging to an attached department or a
subordinate officer of a division shall not be used by the Administrative department
except under Para 10 (Private) and every department or office shall be responsible
for any mis-use or irregularity committed in this behalf.
During scrutiny of record maintained in the office of EM-1 Division Islamabad for the
year 2013-14 and 2014-2015, it has been noticed that the vehicles as mentioned
below Annexure were permanently allotted to officers below 20 Grade for the
Purpose for use pick and drop and huge expenditure of Rs. 1767707/- have ben
incurred in shape of drawl of pol/cng. It was further worth mentioning that the
payments were made to officers concerned which was not permissible as the
amount required to be paid to the contractor / vender caused evasion of tax
(income & sales) , which is against financial as well as treasury rule. The un
necessary retention of vehicles by officers whose were not authorized as per above
policy and direct payment paid to officers/ official may be justified . Conveyance
charges if drawn by officers may also be calculated and recovery may be made
under report to internal Audit.
OS NO.13
NON Obtaining of Revised Performance security Rs. 2506621/-
Data of work
Work: - Construction of Statistics Davison and its attached department at Mauve
Area Islamabad (SH Installation of Lifts) NIT Rs. 18296500/- Premium 37% above
contract Cost Rs. 25066205/- Agreement No. CEN/124 of 2011-12. DOS 28.5.2012.
Original TS 19787865/- Revised TS 25066205/- WIP 7 th Running bill of Rs. 2009516/-
paid to contractor M/S Islamabad Industrial & Trading Co vide CV No. 12 dated
18.6.2015 and MB No. 377/P-76 (W.D Rs. 23981576/-}
As per clause 4.4 (Performance Security), the contract shall provide said security to
the employer in the prescribed form. The said security shall be furnished within 28
days after the receipt of the letter of Acceptance. The performance security shall be
an amount equal to 10% of the contract price stated in the letter of Acceptance.
Such Security shall at the option of the bidder, be in the form of either (a) bank
Guarantee from any schedule bank in Pakistan or (b) an insurance company having
at least AA rating from PACRA/JCR).
Contrary to above clause it was noticed that performance security amount to RS.
2506621/- OF 10% Contract agreement as per clause provision was provided by the
contractor which was expired on 23.5.2013 thereafter no further revised
performance security was obtained by the department till to date i.e 13.9.2015, and
payment up to 7th running bills have been made to contractor. Now obtaining of
revised performance security needs to be justified beside action taken against at
fault under intimation to internal audit.
O.S No. 14
OVERPAYMENT DUE TO UNJUSTIFIED EXCESS EXECUTION OF ITEM OF WORK RS.
548762/-
DATA OF WORK
Work :- Extension of intelligence Bureau Academy at H-11/1 Islamabad. Agreement
No. 153 2010-11 NIT Rs. 4940739/- { SH Electrification and Pumping Set} Award to
M/S Lal Zaman Vide LOA No. EE/AB/1155 dated 3.6.2010, at contract Cost Rs.
7806368/- 9th & Final of Rs. 339831/- Vide CV No. 01 dated 7.5.2015 MB 399/P-84.
The Scrutiny of 9th & Final bill (MB 399/P-84 refers) revealed that following items got
executed in abnormal excess quantity without abnormal change in design and
drawing of the work, which not only led to following excess expenditure of Rs.
548762/- but also violated the instructions of Government as laid down under PARA-
10 (I) & II OF General Financial Rules. The excess expenditure may please be
justified under report to Audit.
S.NO Nomenclat BOQ QTY Executed Excess Rate (Rs) EXCESS

ure of Qty Qty Exp (Rs)
Items
1 7/7 S/F 500 MTR 2987.84 2487.87 75.92 188879/-
20MM DIA MTR MTR
PVC
Conduit
2 22/22 115 MTR 1370 MTR 1255 MTR 25 P.Mtr 31375/-
Wiring of
TV Antina
3 24/24 10 MTR 363 MTR 263 MTR 196.01 51550/-
Wiring of P.MTR
Sub-Main
with 2 x6
4 25/25 150 MTR 1237 MTR 1087 MTR 69.47 75514/-
S/Drawing MTR
of 2x2.5
mm core
PVC
insulated
Total 548762/-
(ABOVE
58%)
OS NO. 15
OVERPAYMENT DUE TO UNJUSTIFIED EXCESS EXECUTION OF ITEM OF WORK RS.
716015/-
DATA OF WORK
Work :- Up-gradation of power transformer/ Installation of Power at Benezir income

support Programme. Agreement 144 2012-13 NIT Rs. 4739648/- Awarded to M/S
Ghafar Construction at Contract cost Rs. 5071424/- 4th & Final bill of Rs. 59066/-
Vide cv No. 01 dated 3.5.2015 MB 354/P-15
The scrutiny of 4th & final bill (MB 354/P-51 Refers) revealed that following items
were got executed inabnormal excess quantity without abnormal change in design
and drawing of the work, which not only led to following excess expenditure of Rs.
716015/- but also violated the instructions of Government as laid down under PARA-
10 (I) & II OF General Financial Rules. The excess expenditure may please be
justified under report to Audit.
S.NO Nomenclat BOQ QTY Executed Excess Rate (Rs) EXCESS
ure of Qty Qty Exp (Rs)
Items
1 3/3 P/L 4 100 Mtr 237.27 137.27 2625 mtr 360333/-
Core PVC mtr
2 8/8 2000 Mtr 3384 MTR 1384 174.26 241175/-
S/Drawing P.Mtr
single core
PVC
3 2/2 (PVC 25 MTR 271 Mtr 246 mtr 137.84 33821/-
Conduit) P.mtr
P/F 40 MM
DIA PVC
4 6/6 (PVC 100 Mtr 255 mtr 155 MTR 218.35 33844/-
Conduit) MTR
P/F 40 X 40
Dia PVC
Total 716015/-
(ABOVE
7%)
OS NO. 16
Doubtful execution of work costing RS. 147683/-
Data of work :-
Work :- Maintenance of Passenger 2 Nos lfits 630 KG Capacity installed at F.P.S.C

Agreement Contractor Date of start Date of Measurement not recorded on
contractor bill first bill of Rs. 147683/- was paid Vide CV NO. 02 dated 3.3.2014.
The scrutiny of contractor bill revealed that Nomenclature of work and status of
work i.e work in progress, nothing has been recorded like agreement , contractor,
date of start, date of measurement etc which leads to doubt that simply to draw the
payment out of public exchequer the CV No. 02 dated 3.3. 2015 of Rs. 147683/- was
passed, but work was not executed at site. That is why execution of work costing Rs.
147683/- is termed as doubtful.
It is therefore, requested that doubtful execution work Rs. 147683/- may please be
justified or be got regularized from the director General PAK PWD under intimation
to internal Audit.
OS NO. 17
NON ENTRY OF MATERIAL ON FORM 08 Purchased at cost of Rs. 477723/-

In terms of Para 105 of CPWA code, all materials received should be examined,
counted or measured, as the case may be entered in the stock register i.e. From-
08 .
Contrary to above referred rule material costing Rs. 477723/- detailed given below
has not been entered on relevant stock register i.e from-08. That is why receipt of
said materials is termed as doubtful.
It is worth mentioning that under requisition, division was requested to produce

relevant stock registers but despite repeated requests said stock registers were not
produced to internal Audit team. Therefore stock entry of the material could not be
confirmed.
It is therefore, requested that either stock entries of the material costing RS.
477723/- may please be got verified or payment made in this regard be recovered
from source at fault .
S.NO Cv No. & MB NO. & Supply Type of Cost (Rs.)

date Supplier Order Material
1 26/24.2.14 369 M/S Supply of 40/36 117630/-
Ideal material at Watts,
Engineering minister Candle,
enclave sever
during lamps,
2013-2014 copper pipe
2 28/26.11.14 371 M/S Supply of 40/36 107358/-
Abdul material at Watts,
Wahab Minister Candle,
Enclave sever
During lamps, Tube
2013-14 Rod
3 15/20.5.14 222 M/S Supply of 40/36 77613/-
Ideal material at Watts,
Engineering Minister Candle,
Enclave sever
During lamps, Tube
2013-14 Rod
4 17/20.6.14 316 M/S Ijaz Supply of Ceiling Fan 94600/-
& Co material at 56 45
Minister
Enclave
During
2013-14
5 68/20.6.14 No MB No Supply of No details 80522/-
Supplier material at of supply
Minister
Enclave
During
2013-14
Total Rs.477723/-
OS No. 18
Non-Production of record
During the course of internal audit on accounts of CEMD-1 PAK PWD Islamabad for
the year 2012-13 , 2013-14 & 2014-15, following record was requisitioned but
despite verbal requests the record was not produced to internal audit for scrutiny
and stated by the Executive Engineer that when the Ex-EE Subhash Chander
transferred to EM-III all these following records were teken away from this Division.
Hence due to non availability of such record the audit of expenditure incurred on
works could not be carried out.
i) Renovation / Rehabilitation of Minister Residence F/5/2 Islamabad Rs.

11633900/-
ii) Construction of New secretariat Block at Constitution Avenue Rs.
88607000/-
iii) Federal Judicial Academy Phase-II G-8/4 Islamabad Rs.
235075038/-
iv) Female Doctor Hostel at Federal Govt Services Hospital Rs.
4500000/-
OS NO. 19
Non revision of technical sanction of work completed beyond permissible limit of TS
Rs. 282582/-
Data of work
Work :- Improvement /Special Repair of Block NO. 1 & IV markaz G-6 (SH Split Type
Air conditioner) TS Rs. 903200/- {NIT Rs. 593095/-+51.0% above} work awarded to
M/S A.K International co vide LOA No. EE/CEMD-1/AB/3445 dated 8.6.2012 contract
cost Rs. 898539/- DOS 8.6.2012 4TH & Final bill Rs. 162599/- {WD Rs. 1185782/-
+50.51%} made to contactor vide CV No. 04 dated 8-02.2013 & MB No. 375 P-12.
The scrutiny of relevant technical sanction (TS) No. CEN/606 of 2011-2012 revealed
that estimate of Rs. 903200/- was technically sanctioned, but relevant MB No.
375/P-12 was showing that the work was completed at cost of RS. 1185782/- Which
is more than permissible limit of 15% of T.S. it is worth mentioning that excess
expenditure of Rs. 282582/- {1185782/- (-) 903200/- has been incurred due to
increase of including extra item but its justification was not available on record.
It is therefore requested that the excess expenditure of Rs. 282582/- i.e. 31%
beyond TS May please be justified besides revision of TS Under intimation to
internal Audit, as revision of TS is not available on in relevant agreement.
OS NO. 20
NON OBTAINING OF REVISED PERFROMANCE SECURITY RS. 3746495/-
DATA OF WORK
Work :- Construction of petroleum House G-5/2 Islamabad (SH Diesel Generating

Set) with rating 800-900 KVA) NIT Rs. 41283692/- premium 9.25% below contract
cost Rs. 37464950/- Agreement No. CEN/362 OF 2012-13 DOS 17.8.2012 TS
42064600/- WIP 4TH Running bill of Rs. 488030/- paid to contractor M/S Riaz & Son
vide cv No. 16 dated 22.6.2015 and MB No. 366/P-40 (W.D Rs. 36596612/-)
As per clause 4.4 (Performance Security), the contract shall provide said security to
the employer in the prescribed form. The said security shall be furnished within 28
days after the receipt of the letter of Acceptance. The performance security shall be
an amount equal to 10% of the contract price stated in the letter of Acceptance.
Such Security shall at the option of the bidder, be in the form of either (a) bank
Guarantee from any schedule bank in Pakistan or (b) an insurance company having
at least AA rating from PACRA/JCR).
Contrary to above clause it was noticed that performance security amount to RS.
3746495/- OF 10% Contract agreement as per clause provision was provided by the
contractor which was expired on 210.3.2013 thereafter no further revised
performance security was obtained by the department till to date i.e 13.9.2015, and
payment up to 4th running bills have been made to contractor. Now obtaining of
revised performance security needs to be justified beside action taken against at
fault under intimation to internal audit.
OS NO. 21
OVERPAYMENT DUE TO NON RECOVERY OF MINUSE BILL RS. 22672/-

Data of work
Work :- Special Repair of block NO. 1 & IV Markaz G-6 Islamabad contractor M/S
Chatta Enterprises Contract cost Rs. 450445/- TS Rs. 466000/- DOS 22.3.12 with
stipulated time of 2 Months DOC 1.6.12 4TH & Final bill (-) Rs. 22672/- passed on vide
CV No. 02 dated 18.2.2014 and MB No. 375 & 381.
The scrutiny of record revealed that work was finished on minus bill of Rs. 22672/-
vide CV No. 02 dated 18.2.2014 and MB No. 375 & 381. Which means that said
amount of RS. 22672/- should have been recovered from contractor but relevant
record was not showing said recovery from contractor. So it appears that
overpayment of RS. 22672/- has been made to contractor. Which may please be
justified or recovered from contractor under intimation to internal audit.
OS NO. 23
Un justified purchase of computer amounting to Rs. 33330/-
CV No. 18 dated 28.6.2014 ________Rs.33330/- purchase of computer (PL-II) Account
record for the year 2014-2015 revealed a sum of Rs. 33330/- was incurred on
account purchase of computer and their parts for office use, and payment made to
M/S Allied computer vide mb No. 344. The work was stared 206.2014 and completed
on 20.6.2014 through F/Final bill, which is irregular on the following ground.
i) Approval of competent authority for purchase of computer was neither

available on record nor produced.
ii) Accounted for of material on from 08 neither found on account record or
produced.
iii) Rate analysis of item purchase based on market along with T.S nether
produced or prepared.
OS NO. 24
Unauthorized Re-imbursement of amount to contractor RS. 20245/-
In terms of Finance Division O.M No. 5(3) /EXP-III/2009 dated 10.4.210 (b) No in-lieu
cheque will be issued in next financial year on behalf of un-encashed cheques of
current financial year.
The scrutiny of cash voucher No. 25 dated 26.5.2014 an amount of Rs. 20245 was
paid to M/S Madni E/Worker on account of Laps cheque on works Construction of
Enquiry office PAK PWD in the premises of Islamabad High court. Audit holds that
fresh cheque was only to be allowed for early revalidation through Supplementary
grants and their approval from Finance Division equal to lapsed amount. The record
regarding submission of Supplementary grants and their approval from Finance
Division was demanded from Executive Authority for verification. But no approval
was produced to Audit to verify the expenditure incurred on this regard. in the
absence of approval of Supplementary grants by Finance Division , the department
prepared fresh chque amounting to Rs. 20245/- in favour of contractor and payment
was made, stands violation of above referred Rule.
It is therefore requested that said irregular expenditure of Rs. 20245/- may please
be got regularized from the Finance Division, under intimation to internal.

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