AGP unearths fraud of billions in LESCO
From Our Correspondent
ISLAMABAD: The Auditor General of Pakistan (AGP) has unearthed irregularities worth billions of rupees including the purchase of 60,500 faulty meters valuing Rs248.05 million. In the audit report 2015-16 presented to the parliament, the auditor general has observed that in Iesco 60,500 meters valuing Rs248.05 million was procured from M/s SB Electronic Lahore (ICB-12) against contract dated February 17, 2009 under World Bank loan, which were found defective within warranty period. The audit noted that neither the matter was taken up with the manufacturers for replacement of defective energy meters nor any inquiry constituted to fix the responsibility. Non-implementation of the authority’s instructions resulted in loss of Rs248.05 million due to purchase of defective energy meters up to the financial year 2015-16. The matter was taken up with the management in September 2016 and reported to the ministry in December 2016. The management replied that all the energy meters were installed and working satisfactory. However, the auditor said that the reply was not acceptable as no documentary evidence was provided to substantiate the reply. In PMU Iesco, a variation order No 2 amounting to Rs23.87 million equal to 15.36 percent of the original contract price of the work of 132 KV SDT Transmission Line Hattian to Bagh, was irregularly approved by the CEO under ADB loan Tranche-II. The said variation order was not approved from the ADB which was irregular and unjustified. Non adherence to above instructions resulted in irregular payment of Rs23.87 million on account of variation order up to the financial year 2015-16. The matter was taken up with the management in August 2016 and reported to the ministry in December 2016. The management replied that the approval of the variation order No 2 was not required from the ADB. The reply was not tenable as the variation order No 2 was required to be approved from ADB.