wis \ 28 Encore Where have all these ‘lacs’ gone? As an audit report speaks of irregularities in the running of Lahore Arts Council during 1995-2000, the then resident director waits confidently for a proper investigation A x By Ashraf Malknam he Punjab Governor has ordered a detailed inquiry into the financial affairs of the Lahore Arts Council (LAC) following reports of irregularities in funds to the tune of Rs 118 inillion in the five years between 1995-2000. Governor's Inspection Team has been entrusted to investigate the LAC account. However, the official whose name has been mentioned in connection with these alleged irregularities denies these charges categorically. He says the real picture will emerge only after the affair has been properly investigated. TNS learnt that the provin- cial audit team found the account records missing, and despite promises by the LAC officials no details were pro- duced before the team. It is learnt that the detailed audit was conducted after many complaints submitted to the Governor House. The two- “member team poinied out seri- ous irregularities in the way funds allocated for golden jubilee celebrations were used, while it also took exception to the non-availability of record of payments and the deposit and non-compliance with instructions to submit cash in the possession of LAC in a PLA bank account etc. The report said the govern- ment had released about Rs 1.7 million for the golden jubilee celebratio The amount was drawn fy Dra The New (o-3-0e the said five years an amount of Rs 7.2 million should have been received on account of securities. But the authors of the audit report found no record of receipts or securities with the LAC. Similarly, when making a reservation, the LAC was supposed to charge a sum for artist welfare fund. These receipts should have account- ed for more than a million but again there was no record. Booking record of different halls with the LAC showed that this wing also suffered from mismanagement. The total collection from booking of these halls for the period was Rs 41 million. This amount should have been brought on record of the LAC, but surprisingly the income shown on record was Rs 29.1 million — leaving about Rs 12 million unaccounted for. Chaudhry Nazir was the Resident Director of LAC for the period between 1995- 2000. When TNS talked to him about the allegations lev- elled against the Council in the audit report, he said these were preliminary observations of the audit department which had to be followed by proper proceedings at three different stages: First the matter will go the department's accounts committee, (hen to the special audit committee and lastly to the Publie Accounts Committee. The final observa- tions will be made only after this, and this will take two to three years. The e aniditjubilee celebrations. | The amount was drawn from PLA (government's account) and“ deposited in Bank of Punjab (BOP), Egerton Road, Lahore. Under rules money cannot be withdrawn from PLA unless it is needed immediately as the interest on the money kept in the bank goes to the govern- ment. Of the total, only Rs 184,355 were returned with ng. record where the remaining Rs. 1.5 million went. Similarly, the audit Feport said that Hagel saesmante The audit report said that illegal payments worth RS 3.2 million was made tnderwithdrawn trom PLA unless it is needed immediately as the interest on the money kept in the bank goes to the govern- ment. Of the total, only Rs 184,355 were returned with no record where the remaining Rs'1.5 million went. Similarly, the audit report said that illegal payments worth Rs 3.2 million was made under the head of develop- ment work carried out at vari- ous Punjab cities. The Council also failed to produce the paid bills before the team. Tt was also stated that dur- ing the period 1995-2000 irregular payments of Rs 3 million were made to employ- ees who were recruited despite an official ban on appointments. The LAC appointed these employees on daily wages. Rs 3.7 million were shown to have been spent on devel- opment schemes but the record of development grauts was not produced, the report said. Likewise, the Council purchased 12 split-type air- conditioners from a private firm for Rs 2.3 million when such spendings were banned. No stock entry was recorded with the LAC. Another alleged violation was that the Lahore Arts Council either kept Rs 29 mil- lion in hand or in the BOP account when the government. had instructed that receipts of the autonomous bodies, local bodies and boards must be credited in PLA (Punjab Ledger Account); The Council suffered a loss of Rs. 2 million due to bad investment decisions of the officials, said the audit report. Record showed that an amount of Rs 77.4 million was invested in various schemes/fixed deposits instead of keeping it in PLA. On the other hand Punjab govern- ment got an overdraft from the State Bank of Pakistan at the rate of 18 per cent per year, Calculations showed that the government suffered a loss of Rs 2 million due to this decision. The LAC received an amount of Rs 29 million from halls and other services. From this income 5 per cent should have been deducted and deposited in government accounts. The report said this was never done. As~per rules the LAC should have charged security along with the reservations made for different halls. As per calculations of rent during payments worth RS 3.2 million was made under . the head of development werk carried out at various Punjab cities. Chaudhry Nazir said the inquiry was the result of a grudge an official in the Information Department car- ried against him. “He wants to defame me,” Nazir said. Responding to the charges that he was guilty of employ- ing people while there was a ban on recruitment, he said these were lower grade employees who were recruited on daily wages to run office business and these seats were not. pensionable. “Further LAC is a corporation and does not need to get permission from the government for employing people on daily wages,” he explained. Nor Were there any irregu- larities in payment against development work commis- sioned by LAC in different cities, he said. “The resident director couldn’t make pay- ments without the consent of the commissioner. So there was no question of embezzle- ment of funds.” As for the allegation that he was guilty of keeping unautho- rised cash instead of sending it to the treasury, he said LAC’s income should remain with LAC and asked “Why should it go into the govern- ment account?" About the record that has been reported as missing, Chaudhry Nazir maintained it was not possible that such important details would disap- pear like this. “The record will be provided when a proper inquiry into the matter is held,” he said and then added: “When I joined the LAC there were no funds available apart from those which went into paying the salaries of the staff. When I left there was an amount of Rs 75 million in its accounts.”