Department of the Auditor General of Pakistan

AUDIT REPORT ON THE ACCOUNTS OF DISASTER MANAGEMENT ORGANIZATIONS - PUNJAB AUDIT YEAR 2018-19

AUDITOR GENERAL OF PAKISTAN

TABLE OF CONTENTS

ABBREVIATIONS & ACRONYMS ...... i PREFACE ...... iii EXECUTIVE SUMMARY ...... iv SUMMARY TABLES & CHARTS ...... vii Table 1 Audit Work Statistics ...... vii Table 2 Audit observations regarding Financial Management ...... vii Table 3 Outcome Statistics ...... viii Table 4Table of Irregularities pointed out ...... ix Table 5 Cost-Benefit ...... ix Chapter-1 ...... 1 Provincial Disaster Management Authority (PDMA) - Punjab ...... 1 1.1 Introduction of Authority ...... 1 1.2 Comments on Budget & Accounts (Variance Analysis) ...... 1 1.3 Brief Comments on the Status of Compliance with PAC Directives ... 1 1.4 AUDIT PARAS ...... 2 Chapter-2 ...... 8 District Disaster Management Authorities (DDMAs), Punjab ...... 8 2.1 Introduction of the Departments ...... 8 2.2 Comments on Budget & Accounts (Variance Analysis) ...... 8 2.3 Brief Comments on the Status of Compliance with PAC Directives ... 8 2.4 AUDIT PARAS ...... 9 Chapter-3 ...... 16 Punjab Emergency Service (Rescue-1122) ...... 16 3.1 Introduction of the Departments ...... 16 3.2 Comments on Budget & Accounts (Variance Analysis) ...... 16 3.3 Brief Comments on the Status of Compliance with PAC Directives . 16 3.4 AUDIT PARAS ...... 17 Chapter-4 ...... 35 Civil Defence Department ...... 35 4.1 Introduction of the Department ...... 35 4.2 Comments on Budget & Accounts (Variance Analysis) ...... 35 4.3 Brief Comments on the Status of Compliance with PAC Directives . 35 4.4 AUDIT PARAS ...... 36 Annexure-I (MFDAC)...... 42

ABBREVIATIONS & ACRONYMS AGP Auditor General of Pakistan AGPR Accountant General Pakistan Revenue AG Accountant General AIR Audit and Inspection Report BoP Bank of Punjab BOR Board of Revenue CDR Call Deposit Receipt CGA Controller General of Accounts CNIC Computerized National Identity Card CRI Control Room Incharge CTWO Computer Telephone Wireless Operator DAC Departmental Accounts Committee DCO District Coordination Officer DDMA District Disaster Management Authority DDO Drawing & Disbursing Officer DEO District Emergency Officer DG Director General DGPR Director General Public Relations DO District Officer DM Disaster Management DRTA District Regional Transport Authority EOT Extension of Time ESA Emergency Service Academy FAM Financial Audit Manual FBR Federal Board of Revenue FTR Federal Treasury Rules FY Financial Year GSM Global System for Mobile GST General Sales Tax HPPC High Power Purchase Committee HQ Headquarter HR Human Resource HRA House Rent Allowance INTOSAI International Organization of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards LD Liquidated Damages M/s Messer’s i

NBP National Bank of Pakistan NDMA National Disaster Management Authority NDMP National Disaster Management Plan NGO Non-Government Organization OBM Out Boat Motor PAO Principal Accounting Officer PABX Private Automatic Branch Exchange PDMA Provincial Disaster Management Authority PDMC Provincial Disaster Management Commission PDMF Provincial Disaster Management Fund PDP Propose Draft Para PEEDA Punjab employees efficiency disciplinary and accountability Act PES Punjab Emergency Service PFR Punjab Financial Rule PITB Punjab Information Technology Board POL Petrol Oil Lubricant PPRA Punjab Procurement Regulatory Authority PST Punjab Sales Tax PTS Patient Transfer Service Qty. Quantity R&M Repair and Maintenance SDA Special Drawing Account SOP Standard Operating Procedure SMS Short Message Service S&GAD Services and General Administration Department SMBR Senior Member Board of Revenue TOR Terms of Reference TPV Third Party Validation WHT Withholding Tax

PREFACE

Articles 169 & 170 (2) of the Constitution of the Islamic Republic of Pakistan read with Sections 8 and 12 of the Auditor General (Functions, Powers and Terms and Conditions of Service) Ordinance 2001, require the Auditor General of Pakistan to conduct audit of receipts and expenditure of the Federation and the Provinces or the accounts of any authority or body established by the Federation or a Province. The report is based on audit of the accounts of Disaster Management organizations of Government of the Punjab for the financial year 2017-18 and accounts of some formations for previous years. The Directorate General Audit (Disaster Management) conducted audit during the year 2018-19 on test check basis with a view to reporting significant findings to the relevant stakeholders. The main body of the Audit Report includes only the systemic issues and as a general principle, attempt has been made to include audit findings having value of rupees one million or more. Relatively less significant issues are listed in the Annexure-I of the Audit Report. The audit observations listed in the Annexure-I shall be pursued with the Principal Accounting Officers at the DAC level and in all cases where the PAOs do not initiate appropriate action, the audit observations will be brought to the notice of the Public Accounts Committee through the next year’s Audit Report. Audit findings indicate the need for adherence to the regularity framework besides instituting and strengthening of internal controls to avoid recurrence of similar violations and irregularities. Audit observations in this report have been finalized in the light of discussions in the DAC meetings. The Audit Report is submitted to the Governor of the Punjab in pursuance of the Article 171 of the Constitution of the Islamic Republic of Pakistan 1973, for causing it to be laid before the Provincial Assembly.

Dated: February, 2019 [Javaid Jehangir] Auditor-General of Pakistan

iii

EXECUTIVE SUMMARY The Directorate General Audit (Disaster Management) is mandated to conduct the audit of receipts and utilization of funds spent by Disaster Management Organizations of the Federal, Provincial as well as District Governments. The office conducts regularity audit, financial attest audit, compliance with authority audit, audit of sanctions and propriety and performance audit of ERRA, NDMA, DG Civil Defence, PDMAs, FDMA, DDMAs and Rescue-1122. The office is presently located at Islamabad. The Directorate General Audit (Disaster Management) has a human resource of 46 personnel with 7,440 man-days available. The annual budget of the Directorate General Audit (DM) for the financial year 2018-19 is Rs 59.028 million. There are 03 PAOs and 120 auditable formations in the Disaster Management Organizations of Punjab. As per Audit Plan 2018-19 both expenditure and receipts of these formations were audited on test check basis by selecting 18 out of 120 formations. a. Scope of audit Out of a total expenditure of Rs 7,305.978 million of Provincial Disaster Management Organizations, the DG Audit, Disaster Management audited an expenditure of Rs 2,016.731 million which in terms of percentage is 28% of auditable expenditure. The audit covered issues of propriety, efficiency and economy in public spending. b. Recoveries at the instance of audit Recoveries of Rs 39.603 million were pointed out by audit, out of which recovery of Rs 1.006 million was affected during the financial year 2017-18 at the time of compilation of this report. These recoveries were not in the notice of the Executive before audit. c. Audit Methodology The audit was conducted in accordance with the INTOSAI Auditing Standards as envisaged in Financial Audit Manual (FAM). The overall objective of the audit was to assess compliance with financial rules and adequacy of internal controls. The iv audit also included review of record, field visit and discussion with management along with analysis and comments on various policies of auditee. d. Audit Impact On pointation of audit, the Punjab Emergency Service (Rescue-1122) established internal audit wing to carry out internal audit functions. e. Comments on Internal Control and Internal Audit Department The organizations have Internal Controls in place but the same needs improvement. The weakness observed by the audit are opening of bank accounts by the DEOs (Rescue 1122) without approval of the Finance Department. Non- conducting internal audit and physical verification of store and stock. There is no internal audit wing in the PDMA Punjab which needs to be established. f. Key audit findings of the report i. Irregular payments/violation of rules was observed in 19 cases involving Rs 226.292 million.1 ii. Recoveries were pointed out in 03 cases amounting to Rs 39.429 million.2 iii. Lack of internal control was observed in 04 cases Rs 49.041 million.3 iv. Non Production of record was observed in 1 case involving Rs 10.00 million4. g. Recommendations Audit recommends that: i. Irregular/un-authorized payments should be regularized or recovered from the responsible as decided in the DAC. ii. Internal Controls should be strengthened and internal audit be conducted on a regular basis. The internal audit report needs to be shared with Audit. iii. The inventory management and control system needs to be made effective through continuous monitoring.

1Para 1.4.2, 2.4.3, 2.4.4, 2.4.6, 3.4.1, 3.4.2, 3.4.3, 3.4.4, 3.4.5, 3.4.7, 3.4.8, 3.4.13, 3.4.14, 3.4.15, 3.4.16, 4.4.1, 4.4.2, 4.4.3, 4.4.4 2 Para 1.4.2, 3.4.9, 3.4.14 3 Para 2.4.5, 3.4.9, 3.4.10, 3.4.11 4 Para 2.4.1 v

iv. The PPRA rules needs to be followed in letter and spirit to safeguard public money. v. Reconciliation of expenditure needs to be done regularly with AG and Treasury / banks along with timely surrender of unspent balances. vi. Inquiries ordered by DAC should be completed in time and their findings needs to be shared with Audit. vii. Contractual obligations may be observed in letter and spirit.

SUMMARY TABLES & CHARTS

Table 1 Audit Work Statistics (Rs in million) S. No. Description No. Budget 1 Total Entities (Ministries/PAO’s) in Audit 03 8,489.150 Jurisdiction 2 Total formations in audit jurisdiction 120 8,489.150 3 Total Entities(Ministries/PAO’s) Audited 03 8,489.150 4 Total formations Audited 18 8,229.91 5 Audit & Inspection Reports 18 8,229.91 6 Special Audit Reports - - 7 Performance Audit Reports - - 8 Other Reports - - .

Table 2 Audit observations regarding Financial Management

S. No. Description (Areas) Amount Placed under Audit Observation (Rs in Millions) 1 Asset management - 2 Financial management (specific) - 3 Internal controls relating to financial 57.946 management 4 Others 228.137 Total 286.083

vii

Table 3 Outcome Statistics (Rs in million) S.No. Description Expenditure Civil Receipts Others Total Total last on Acquiring Works current year Physical year Assets (Procurement) 1 Outlays - - - - 2,016.731 5,912.752 Audited 2 Amount Placed under Audit - - - 216.819 216.819 1515.563 Observations /Irregularities of Audit 3 Recoveries Pointed Out at the - - - 39.429 39.429 53.832 instance of Audit 4 Recoveries Accepted /Established - - - 0.322 0.808 1.305 at the instance of Audit 5 Recoveries Realized at - - - - - 1.006 the instance of Audit

viii

Table 4 Table of Irregularities pointed out (Rs in million) S. No. Description Amount Placed under Audit Observation 1 Violation of rules and regulations, violation of principle of propriety and probity in public 226.292 operations. 2 Reported cases of fraud, embezzlement, thefts and - misuse of public resources. 3 Accounting errors (accounting policy departure from IPSAS, misclassification, over or understatement of account balances) that are significant but are not - material enough to result in the qualification of audit opinions on the financial statements. 4 If possible quantify weaknesses of internal control 49.041 systems. 5 Recoveries and overpayments, representing cases of establishment overpayment or misappropriations of - public money 6 Non–production of record. 10.00 7 Others, including cases of accidents, negligence etc. 0.750 Table 5 Cost-Benefit

S. No. Description Amount (in million) 1 Outlays Audited (Items 1 of Table 3) 2,016.731 2 Expenditure on Audit 13.233 3 Recoveries realized at the instance of 1.006 Audit Cost-Benefit Ratio 1:0.075

Chapter-1 Provincial Disaster Management Authority (PDMA) - Punjab

1.1 Introduction of Authority The Provincial Disaster Management Authority (PDMA) is constituted under the NDM Act (National Disaster Management Act) in 2010. PDMA specializes in mitigation, preparedness and an organized response to a disaster. PDMA also acts as the coordinating authority, which articulates the coordination mechanism between key provincial departments. In case of emergencies, the PDMA works closely with District Governments to organize initial and subsequent assessment of disaster- affected areas and determine the course of action to ensure long-term rehabilitation of the affected population. 1.2 Comments on Budget & Accounts (Variance Analysis) (Rs in million)

Sr. Financial Budget Allocation Expenditure Saving No. Year (Rs) (Rs) (Rs) 1 2017-18 1,295.243 608.369 686.873 The difference between fund released and expenditure was due to non- surrender of Rs 601.658 million. 1.3 Brief Comments on the Status of Compliance with PAC Directives No PAC directives have been issued as this Directorate General conducted audit of Disaster Management organizations of Punjab during the year 2016-17 for the first time and the Audit Reports generated by this office have not yet been discussed in the PAC.

1.4 AUDIT PARAS Irregularity & Non Compliance 1.4.1 Wastage of public money on account of non-utilization of biometric enrolment system - Rs 23.00 million As per rule 2.10(a)(1) of PFR Vol-I, in incurring and sanctioning expenditure from the revenues of the province the disbursing officers and sanctioning authorities should be guided by the fundamental canons of financial propriety and same vigilance should be exercised in respect of expenditure incurred from Government revenues, as a person of ordinary prudence would exercise in respect of the expenditure of his own money. In order to ensure the transparency, efficiency and accountability during relief operation a contract was awarded to M/s Supertek regarding biometric enrollment of disaster affectees in relief camps with a cost of Rs 23.00 million. During the scrutiny of record, it was observed that due to unprovoked firing by the Indian border security force on working boundary at Sialkot w.e.f. 18.01.2018 causing 13 deaths and 43 injuries. Resultantly, the District Administration established 07 Relief Camps to accommodate the victims, where food and medical treatment was provided. Moreover, local inhabitants were shifted to temporary camps to avoid further loss of life/injuries. Audit observed that a huge amount of public money was spent on procurement of the biometric enrollment system for disaster affected relief camps in midst of Flood season 2016. The department awarded the contract to M/s Supertek the only firm participated in the tendering process on the analogy that flood season was commenced and there was no sufficient time left to go for re-advertising the tender. However, despite lapse of sufficient time the project was not functional since one and half year, hence all the relief activities of Sialkot incident were carried through conventional method compromising the transparency during carrying out relief operation. Audit is of the view that said project should have been utilized in the event of disaster occurred in Sialkot for the biometric enrollment of affectees to monitor

2 receipt and distribution of relief goods/equipment at camp sites. This showed that PDMA, Punjab is only interested in procurement of items leaving their functionality behind resulting in wastage of public money. The matter was reported to the management in July, 2018. In response department replied that camp management is a comprehensive software based project, designed for permanent relief camps, while contents of the letter dated 20.01.2018 of the DC Sialkot clearly depicts that temporary relief camps were established. The DAC in its meeting held on 2nd January, 2019 directed to inquire the matter at Administrative department level within 30 days. Audit recommends that an inquiry committee be constituted at SMBR level to investigate the irregularities in incurring expenditure on account of purchase of biometric enrollment system. The disciplinary action under PEEDA Act, 2006 be initiated for nonfunctional biometric system during establishment of relief camps at Sialkot.

(PDP 186, PDMA Punjab) 1.4.2 Non-Deposit of Profit into Government Treasury - Rs 38.621 Million Rule 9(1) of Punjab Treasury Rules states that a Government servant may not, except with the special permission of the Government, deposit in a Bank moneys withdrawn from the Consolidated Fund or the Public Account of the Province under the provisions of Section VII of these rules. Further, Rule 2.2 of Punjab Subsidiary Treasury Rule states that Account sanctioned under Treasury Rule 9 must be opened with an office of the State Bank of Pakistan or with a branch of a Bank acting as its agent, according to the convenience of the officer opening the account. Where there is no office of the State Bank of Pakistan or branch of a bank acting as its agent, an account may be opened with the Post Office Savings Bank or, with the previous approval of the Government, with any other bank. PDMA, Punjab is maintaining 13 bank accounts (2 with NBP and 11 with BoP) having accumulated balance of Rs 2,404,021,992. Out of these 13 bank accounts 06 bank accounts are interest bearing with the profit of Rs 38,621,651 on the said balance as on 30.06.2018. The detail is given below: - 3

S. No. Account Title Amount (Rs) Profit as on 30.6.18 1. Current Account No. 22-11022-2 NBP 268,791 - 2. C.M. Relief Fund for Tameer-e-Pakistan 21,636,068 360,894 3. Project Director PMU/PDMA 747,143 - 4. C.M. Relief Fund of IDPs of NWFP 66,078,756 - C.M. Relief Fund for Relief and Assistance to the 5. 14,100,197 Affectees of Earthquake in Balochistan - 6. C.M. Relief Fund for Tameer-e-Sindh 78,680 1,312 7. DG, PDMA 2,157,406 42,000 8. C.M. Relief Fund for IDPs of North Waziristan 2,475,119 - 9. C.M. Relief Fund for Flood Relief 928,458,394 15,486,676 10. C.M. Relief Fund for IDPs of North Waziristan 978,963,614 16,345,752 11. Prime Minister’s Kissan Package 2015 9,160,382 - 12. Prime Minister’s Kissan Package 2015 373,025,832 6,270,282 13. Prime Minister’s Kissan Package 2015 6,871,609 114,735 Total 2,404,021,993 38,621,651 Audit is of the view that the funds were allocated from Provincial Government for certain projects which were required to be utilized and closed after completion of the projects. Accordingly, the closing balance should be surrendered to provincial government along with the profit earned. The matter was reported to the management in July, 2018. In response department replied that rule 9(1) of the Punjab Treasury Rules and Rule 2.2 of Punjab Subsidiary Treasury Rule allowed the Department to maintain the Bank Accounts for different purposes and did not impose or issue any specific direction/instructions regarding deposit of profit on these Bank Accounts into Treasury. The DAC in its meeting held on 2nd January, 2019 directed the department to get the clarification from Finance Department about the current account and profit bearing account regarding interest earned / retained / utilized. Audit recommends that the opening of profit bearing account without approved accounting procedure is irregular besides depositing the said balance along with profit into Government Treasury.

(PDP 187, PDMA Punjab) 4

Internal Control Weaknesses 1.4.3 Internal Audit of PDMA Punjab not conducted According to Government of Punjab instructions issued, vide notification No. SOE-II (P&D) 1-15/07 dated 2nd February, 2007, the Internal Auditor of the department shall exercise all budgetary and financial controls under the framed rules and the best practices prescribed by the Government. During audit of accounts of the PDMA Punjab it was observed that Internal audit of the department has not been conducted since inception which is not only the violation of Government rules but also raised questions on the internal controls of the department. The matter was reported to the management in July, 2018. In response department replied that the post of Audit & Accounts Officer is lying vacant since 25.06.2015 department has time and again requested to the office of the Controller General of Accounts, Islamabad for placement of services of an officer which is still awaited. The DAC in its meeting held on 2nd January, 2019 directed that Internal Audit will be conducted by constituting a team duly headed by an officer from Board of Revenue. Audit recommends implementation of the DAC decision.

(PDP 196, PDMA Punjab) 1.4.4 Physical Verification of Store/Stock not conducted worth – Rs 45,843.225 million Para 15.16 of Punjab Financial Rules Vol-I provides that a physical verification of all stores must be made at least once in every year. A certificate of verification of stores with its results should be recorded whenever such a verification is carried out. PDMA Punjab purchased different assets and relief equipment from time to time and in the light of the above mention rules the management was required to conduct annual physical stock verification of all kinds of store by nominating a person but the same was not conducted. However, contrary to above rules, physical 5 verification of the store was never carried out by the management of the PDMA. The amount spent on purchase of store, stock and assets under different heads of account is given in Annex-II Audit is of the view that physical verification of store/stock may be carried out immediately under intimation to Audit and physical verification report may be provided to audit. The matter was reported to the management in July, 2018. In response department replied that all the stores purchased are duly entered in the stock register kept in the warehouses. Physical verification of store/stock has been carried out and available for verification. The reply is not tenable as the physical verification of stock has not been carried out. The DAC in its meeting held on 2nd January, 2019 directed to conduct the physical verification of stock / store / relief items within 90 days. Audit recommends implementation of the DAC decision.

(PDP 197, PDMA Punjab) Performance 1.4.5 Non-convening of Provincial Disaster Management Commission meeting Section 14 of NDMA Act 2010 provides that subject to the provisions of this Act, a Provincial Commission shall have the responsibility for laying down policies and plans for disaster Management in the Province. PDMA works under the umbrella of PDMC. NDMA Act provides powers and functions of PDMC which includes: - i. Lay down the Provincial Disaster Management policy; ii. Approve Disaster Management plans iii. Review the implementation of the plan iv. Oversee the provision of funds for mitigation and preparedness measures v. Review development plans of the different departments

During audit of PDMA Punjab it was observed that Provincial Disaster Management Commission (PDMC) has not been constituted as policy making body to govern activities being performed by PDMA in the Province. Audit is of the view that in the absence of any governing mechanism the performance of PDMA may suffer. The matter was reported to the management in July, 2018. In response department replied that formulation of PDMC is under process. However, Chief Minister, Punjab vide notification dated 12.07.2017 has constituted Cabinet Committee on Floods. The DAC in its meeting held on 2nd January, 2019 directed to initiate a summary for constitution of PDMC at the earliest. Audit recommends implementation of the DAC decision.

(PDP 194, PDMA Punjab)

Chapter-2

District Disaster Management Authorities (DDMAs), Punjab

2.1 Introduction of the Departments The District Disaster Management Authorities were established under the National Disaster Management Act in 2010 in each District of the Punjab. The District Authority is responsible for the District planning coordinating and implementing body for disaster management in the District in accordance with the guidelines laid down by the National/ Provincial Authority. 2.2 Comments on Budget & Accounts (Variance Analysis)

(Rs in million)

Sr. Formation Financial Funds Expenditure Saving No. Year Released (Rs) (Rs) 1 Gujrat 2017-18 10.00 0.080 9.92 2 Muzaffargarh 2017-18 10.00 0.813 9.19 3 Jhang 2017-18 10.00 - 10.00 4 Sargodha 2017-18 10.00 1.606 8.39 5 Hafizabad 2017-18 10.00 2.253 7.75 Total: 50.00 4.752 45.248 The difference between fund released and expenditure of Rs 45.248 million was due to non-utilization. 2.3 Brief Comments on the Status of Compliance with PAC Directives This Directorate General conducted audit of Disaster Management organizations of Punjab during the year 2016-17 for the first time and the Audit Report generated by this office has not yet been discussed in PAC.

2.4 AUDIT PARAS Non Production of record 2.4.1 Non production of record of funds released to DDMA - Rs 10.00 million Section 14 (3) of the Auditor-General’s (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001 provides that any person or authority hindering the auditorial functions of the Auditor-General of Pakistan regarding inspection of accounts shall be subject to disciplinary action under relevant Efficiency and Discipline Rules, applicable to such person. During the scrutiny of record, it was observed that the funds amounting to Rs 10 million were placed at the disposal of DDMA, Jhang vide BOR letter no. 321- 217/560/B-I dated 31.08.2017 for the FY 2017-18. Audit found that there was no record maintained and made available to audit for scrutiny. Even the entity was totally unaware that amount was release to Deputy Commissioner, Jhang by the BOR. Audit is of the view that in the absence of any record audit is unable to verify utilization of funds or incurring any expenditure. The matter was reported to the management in September, 2018 to furnish reply but no reply was received. Audit recommends that the matter be investigate besides the reconciliation be made with the PDMA/BOR under intimation to audit. (PDP 224, DDMA Jhang) Irregularity & Non Compliance

2.4.2 Loss of public money due to non-replacement of defective tents – Rs 7.900 million As per rules 2.33 of PFR Vol-I, “every Government servant should realize fully and clearly that he would be held personally responsible for any loss sustained by Government through fraud or negligence on his part or to the extent he contributed to the loss by his own action or negligence. PDMA Punjab dispatched 1,000 tents to the DDMA, Hafizabad vide letter No. Flood-2016/387/B-I dated 25.07.2016. During audit of DDMA Hafizabad it was 9 observed that the stock was received by DEO, Hafizabad on behalf of DDMA. Accordingly, DEO Hafizabad pointed out the defects of the tents with the request to replace all the tents. The observations of Third Party Validations were as under:

Sr. No. Observations Tents Qty. 1 Poles and Pegs are not strong enough to be used 824 2 Tents with holes 04 3 Tents with fungus and rust 172 Total: 1,000 Audit is of the view that that due to above noted observations all the 1,000 tents supplied by the PDMA were defective and sub-standard. Non-replacement of substandard tents resulted in loss of Rs 7.900 million (1000 x 7900/cost per tent) The matter was reported to the management in August, 2018. Department replied that as the consignment of tents were made by the PDMA, Lahore so the matter rest with the PDMA. The DAC in its meeting held on 2nd January, 2019 directed to inquire the matter at Administrative department level within 60 days for non-replacement of defective tents Audit recommends that disciplinary action be initiated for non-replacement of defective tents besides the loss be made good from the persons at fault under intimation to audit.

(PDP 219, DDMA Hafizabad) 2.4.3 Vouched accounts not obtained –Rs 2.698 million As per rule 2.20 of PFR Vol-I, as a general rule every payment, including repayment of money previously lodged with Government, for whatever purpose, must be supported by a voucher setting forth full and clear particulars of the claim. As far as possible, the particular form of voucher applicable to the case should be used. Deputy Commissioner, Muzaffargarh transferred Rs 2.100 million to various officers to carry out relief activities during the financial year 2016-17. The funds were utilized for the relief activities but the detail of expenditures along with vouchers was not available in record for the verification of authenticity of expenditure. The necessary detail is given below:

Sr. No. Cheque No. Date Issued to Amount 1 499568 04.08.2016 AC (Muzaffargarh 1,00,000 2 499569 04.08.2016 AC (Jatoi) 300,000 3 499570 04.08.2016 AC (AliPur) 300,000 4 499571 04.08.2016 Secretary DRTA Mgh 500,000 5 499585 23.12.2016 DO Livestock 598,000 Total 2,698,000 Audit is of the view that in the absence of above mentioned information/ data the payment is doubtful. Consequently, audit is unable to ensure the authenticity of the claims/payments made to the affectees. The matter was reported to the management in August, 2018 to furnish reply but no reply was received. Audit recommends that matter be examined for making payment without observing codal formalities besides the vouched accounts be obtained.

(PDP 229, DDMA M. Garh) 2.4.4 Unverified expenditure on account of relief activities – Rs 2.669 million As per rule 2.20 of PFR Vol-I, as a general rule every payment, including repayment of money previously lodged with Government, for whatever purpose, must be supported by a voucher setting forth full and clear particulars of the claim. As far as possible, the particular form of voucher applicable to the case should be used. The Deputy Commissioner, Muzaffargarh expended an amount of Rs 2.669 million on different relief activities but the detail of expenditure and record was not available. Audit is of the view that in the absence of above mentioned information/ data the payment is doubtful. Consequently, audit is unable to ensure the authenticity of the claims / payments made to the affectees. The matter was reported to the management on 31.08.2018 to furnish reply but no reply was received. Audit recommends that matter be examined for making payment without observing codal formalities and report thereon may be forwarded to Audit. (PDP 231, DDMA M.Garh)

Internal Control Weaknesses

2.4.5 Unverified relief items dispatched by PDMA to DDMAs worth – Rs 47.277 million Rule 15.4(a) of Punjab Financial Rules Vol-I requires that all material received should be examined counted, measured and weighed as the case may be, when delivery is taken and then entered in the appropriate stock register. PDMA Punjab dispatched different relief goods to DDMAs for monsoon season 2017. During scrutiny of record of DDMAs it was observed that no record of said relief items was maintained by the DDMAs to verify that the items were received at DDMAs. Moreover, warehouse have also not been established for safe custody of the relief items. The detail of dispatches during monsoon 2017 obtained from PDMA Punjab is given in Annex-III. Audit is of the view that the items dispatched by the PDMA Punjab and not taken on charge by the DDMAs raise serious concerns and may result into loss to Government exchequer. The matter was reported to the management in September, 2018 to furnish reply but no reply was received. Audit recommends that matter may be probed and responsibility be fixed at the person(s) at fault under intimation to audit.

(PDP 207, 213, 225, DDMA Sdgh, Gujrat, Jhang) 2.4.6 Lapse of funds due to non-surrender - Rs 45.248 million Para 14.3 of Punjab Budget Manual, all savings or unspent funds shall be surrendered / reported to Govt. through statement of excesses and surrenders, so that balances may be transferred / distributed to other needy departments of the Government to avoid the lapse of appropriations. During the financial year 2017-18 funds amounting to Rs 10.00 were placed at the disposal of all DDMAs. Audit observed that the DDMAs spent a very nominal amount and the remaining balance remain unspent. The unspent balance was required 12 to be surrendered to Government but the same was not surrendered by the DDMAs. The detail is as under: -

Sr. No Name of DDMA Budget Expenditure Balance (Rs) (Rs) (Rs) 1 Gujrat 10.00 0.080 9.92 2 Muzaffargarh 10.00 0.813 9.19 3 Jhang 10.00 - 10.00 4 Sargodha 10.00 1.606 8.39 5 Hafizabad 10.00 2.253 7.75 Rs: 50.00 4.752 45.248 Audit is of the view that non-surrender of saving and lapse of budget allocation is a serious negligence and shows poorest financial discipline at part of the management. The matter was reported to the management in August, 2018 to furnish reply. DDMA Hafizabad replied that funds were allocated to carry out immediate rescue and relief operations. The natural causalities are not predictable, therefore, funds were not surrendered. The remaining DDMAs did not replied. The DAC in its meeting held on 2nd January, 2019 on the accounts of DDMA Hafizabad directed to refer the case to Finance Department for regularization. Audit recommends that the responsibility be fixed against the person at fault for not surrender of funds in time besides regularization from the Finance Department.

(PDP 206,212,218,228 DDMA Sdgh,Gujt,Hafizabad, Mgh) 2.4.7 Relief items not distributed timely resulting in expiry of food items and wastage of Government resources As per rules 2.33 of PFR Vol-I, “every Government servant should realize fully and clearly that he would be held personally responsible for any loss sustained by Government through fraud or negligence on his part or to the extent he contributed to the loss by his own action or negligence. During scrutiny of stock register and visit of warehouse maintained at Muzaffargarh it was observed that food hampers and mineral water was not issued or distributed to the deserving peoples as balance quantities were still reflected on stock

13 register. Due to non-issuing of the foods items timely the stock was expired causing loss to Government amounting to Rs 750,500. The detail of expired foods items is as under:

Stock Register Food Item unit Balance Rate (Rs) Amount (Rs) Page No. available 61 Food Hampers No. 260 2,475 643,500 68 Food Hampers No. 42 2475 103,950 65 Mineral Water Bottles 61 50 3050 Total: 750,500 Audit is of the view that due to not devising inventory management policy as well as retention and handling procedure of food and perishable items the Government sustained the loss. The matter was reported to the management in August, 2018 to furnish reply but no reply was received. Audit recommends that responsibility be fixed at the person(s) at fault, the loss be made good under intimation to audit. The policy may be devised for handling and retention of perishable food items.

(PDP 232, DDMA M.Garh) Performance 2.4.8 Non-preparation and submission of annual report to Provincial Government as required under NDM Act 2010 As per Section 41(2) of NDM Act 2010, “District Authority shall prepare once every year, in such form and at such time as may be prescribed by rules, an annual report giving a true and full account of its activities during the previous year and copies thereof shall be forwarded to the Provincial Government which shall lay it before the Provincial Assembly.” During security of record it was observed that the Annual Performance Report of DDMAs activities since promulgation of the NDM Act was required to be submitted to the Provincial Government and Provincial Assembly, but no such reports were made to the respective forum. Audit is of the view that non-preparation of said Report and further submission to the Provincial Assembly is violation of NDM Act. 14

The matter was reported to the management in August, 2018. The DDMA Hafizabad replied that flood fighting plans containing activity reports is being submitted to the quarters concerned every year. The reply of remaining offices was not received. The DAC in its meeting held on 2nd January, 2019 on the accounts of DDMA Hafizabad directed to prepare the Annual Report of DDMA and submit to lay down before the Provincial Assembly. Audit recommends that the Annual Report be prepared and submitted to the Provincial Assembly as required under the rules.

(PDP 209,216,223,233, DDMA Sdgh, Gujt,Mgh,Hafizabad)

Chapter-3 Punjab Emergency Service (Rescue-1122)

3.1 Introduction of the Departments The Punjab Emergency Service (Rescue 1122) was established under the Punjab Emergency Service Act, 2006 for professional management of emergencies such as road traffic accident, building collapse, hazardous material incident, fires and disasters. The mission of the department is “Development of Safer Communities through establishment of an effective system for Emergency Preparedness, Response and Prevention” and the objective is “Establishment of an emergency service for the purpose of maintaining a state of preparedness to deal with emergencies. To provide timely response, rescue and emergency medical treatment to the persons affected by emergencies and recommending measures to be taken by related organization to avoid emergencies.” 3.2 Comments on Budget & Accounts (Variance Analysis)

(Rs in Million) F.Y. Budget Expenditure Balance 2017-18 6,441.786 6,169.638 272.148

The difference between fund released and expenditure incurred was due to non-surrendering of Rs. 272.127 million. 3.3 Brief Comments on the Status of Compliance with PAC Directives This Directorate General conducted audit of Disaster Management organizations of Punjab during the year 2016-17 for the first time and the Audit Report generated by this office has not yet been discussed in PAC.

3.4 AUDIT PARAS Irregularity & Non Compliance 3.4.1 Illegal award of contract to blacklisted firm – Rs 29.835 million As per Bidding Document clause 7(v) a bidder shall submit an affidavit on legal stamp paper of Rs 50/- that the firm is not blacklisted on any ground by any Government (Federal/Provincial/District), a local body or a public organization. The bidder shall be debarred from bid on account of submission of false statement. Punjab Emergency Service (Rescue 1122) made payment to M/s World Wide Logistic of Rs 29.835 million vide cheque No.3358915 dated 23.06.2018 on account of procurement of safety shoes. Audit noticed that the department made procurement from the firm blacklisted by the PPRA for a period of three years w.e.f 27.04.2018. The matter was pointed out to the management in August, 2018. Department replied that the firm was blacklisted and declared ineligible for participating in any Public Procurement of Punjab Daanish Schools and Centers of Excellence Authority (PDS&CEA) for a period of three (3) years. The reply of the Management is not tenable because Punjab Procurement Regulatory Authority (PPRA), Lahore blacklisted M/s World Wide Logistics from participating in any public procurement for a period of three years not specifically for Punjab Danish School but for all public procurements. DAC in its meeting held on 14th December, 2018 directed to inquire the matter at Administrative department level for award of contract to blacklisted firm. Audit recommends implementation of the DAC decision.

(PDP 244, Rescue 1122 HQ)

3.4.2 Irregular expenditure on account of procurement of call monitoring system - Rs 19.400 million As per Rule 38 (2)(a) of the Punjab Procurement Rules 2014, a tender on the basis of “Single stage two envelopes bidding method for procurement of call monitoring and Wireless equipment was adopted. 17

Department advertised a tender for procurement of call monitoring and wireless equipment and last date for submission of bids was 18.04.2017. Initially tender was floated to provide equipment to create a wireless communication system as mentioned below:

Sr. No. Items to be procured No 1 Installation of call monitoring software 93 2 Virtual PABX Call Monitoring System 10 3 Digital Base Radio 298 4 Digital Mobile Radio 1,762 5 Digital Walkie Talky 536 Digital Dispatcher software e of wireless 6 system 9 7 GSM Mobile phones 1,500 During the Purchase Committee meeting held on 09.05.2018 it was decided by the procurement committee to use the services of Telenor Pakistan instead of creating own wireless communication system. Audit observed following:  Last date for submission of bids (Technical & Financial) was 18.04.2017 while Telenor Pakistan gave financial bids on 09.05.2018.  Nature of tender was changed due to procurement of Services of Telenor (Mobile Office) instead of conventional wireless system, so this procurement should have been retendered for healthy open competition. Audit is of the view that procurement was made in violation of the Punjab Procurement Rule 2014 showing lapse at the part of the management. The matter was pointed out to the Management in August, 2018. Department replied that the tender for virtual PABX call monitoring software and GSM mobile was floated separately in leading newspapers “Daily Express”, “The News” on 31st March, 2017 and also on PPRA website in accordance with Punjab Procurement Rules 2014. It was revealed that the technically responsive firms for virtual PABX Call Monitoring Software were Service providers and they offered GSM mobile sets in their financial bids along with the said software as Turnkey solution (Complete 18 package includes calls, connections, call rate, internet package, warranty and backup solutions). Due to this the Purchase Committee decided to scratch separately floated tender for virtual PABX Call Monitoring Software to avoid the duplication and wastage resources. Accordingly, both vendors have submitted their revised bids for GSM mobiles along with detail / comprehensive package as per requirement of the Service on 09-05-2018”. The reply of the management is not tenable because PABX Call Monitoring Software and GSM mobiles were advertised in the same tender i.e. 31st March 2018. Department changed the procurements items/services after receiving the technical bids by the bidders. If department wanted to procure different call and SMS packages along-with GSM mobiles instead of conventional communication system based on wireless, then it was to be re-tender the whole procurement for healthy open competition. DAC in its meeting held on 14th December, 218 directed to inquire the matter at Administrative department level. Audit recommends implementation of the DAC decision.

(PDP 247, Rescue 1122 HQ) 3.4.3 Unjustified payment of overtime allowance – Rs 6.481 million As per Finance Department Punjab notification no SOW-II(S&GAD)15- 5/2017 dated 20.11.2017 overtime allowance at the rate existing per hour gross salary upto maximum 4 hours per day and 80 hours per month to the staff of Patient Transfer/Referral service (Rescue 1122) was allowed. An amount of Rs 6.481 was paid to the employees of Rescue 1122 Muzaffargarh on account of overtime for Patient Transfer Service (PTS) during the financial years 2016-17 and 2017-18. Audit observed following irregularities: - i. Duty roster was mandatory to grant emergency overtime allowance. The duty roaster of all employees was not maintained. ii. Payment was made to CTWOs for performing duty in control room but the claim was not verified/countersigned by the control room in-charge (CRI).

19 iii. The payment was allowed for 04 hours per day upto maximum of 80 hours per month but the record regarding minimum and maximum duty hours was not available. iv. The record regarding number of operational PTS vehicles was not available to verify the claim. Audit is of the view that the payment made without maintaining proper and complete record of overtime allowance is irregular. The matter was reported to the management in September, 2018. The management replied that Shift incharge and Station coordinator are liable to properly monitor the duties performed by the staff, they provided the hours detail of each rescuers and accordingly payment was made. Shift incharges and Station coordinator also prepared the duty roaster of control room, the hours performed by CTWOs. The reply is not tenable as the duty rosters was to be prepared with the consultation of CRI. The duty roster and the claims were to be verified by the control room incharge as well. There are discrepancies in payment of overtime allowance. DAC in its meeting held on 14th December, 2018 directed to inquire the matter at Administrative Department level to ascertain the transparency in payment of overtime allowance.

Audit recommends implementation of the DAC decision.

(PDP 167, DEO 1122 Mgh)

3.4.4 Fictitious bills on account of repair of vehicles - Rs 7.285 million Rule 17 of Punjab Emergency Service Financial Rules provides that the Service shall advertise, pre-qualify and shortlist a workshop for emergency repair of a category of equipment or vehicle in a district for ensuring timely repair and availability of an emergency vehicle and equipment for quick management of an emergency. Audit observed that DEO Muzaffargarh incurred an expenditure of Rs 4.344 million on repair and maintenance of vehicles from 2016-18 and work was got done from General Order Supplier despite that 05 workshops for R&M of vehicles were prequalified. The detail given in Annex-IV 20

Audit also observed that DEO Kasur made payment of Rs 2.941 million to different vendors (General Orders Suppliers) on account of repair and maintenance of vehicles maintaining their workshops in Lahore and there is approximately 50 Km distance in between Lahore and Kasur. There is no entry in the logbooks regarding movement of vehicles to Lahore. Further, it was observed that invoices provided by the vendors are numbered in a sequence which creates doubts on the genuineness of the claims. Audit is of the view that repair of vehicles from a general order supplier creates question mark on the legitimacy of expenditure incurred, quality of work done, genuineness of spare parts. Further, giving the work order for repair work to general order supplier instead of prequalified workshops is violation of Punjab Emergency Financial Rules. The matter was reported to the management in September, 2018 to furnish reply but no reply was received. DAC in its meeting held on 13th and 14th December, 2018 directed to inquire the matter at Administrative Department level. Audit recommends that matter be inquired to ascertain authenticity of the amount and the action be taken against the responsibles. This practice should be discontinued in future and firms should be prequalified.

(PDP 169, 279 DEO 1122 Mgh & Kasur) 3.4.5 Unnecessary delay in executing repair and maintenance work of emergency vehicles As per Government of the Punjab (Planning & Development Department), order no. SO (E-II) PES (P&D) 1-4/2006 special dispensation for repair of Emergency Vehicles of Punjab Emergency Service (Rescue 1122) was approved to enable to get Emergency Vehicles repaired and made operational within the minimum possible time. During audit it was found that District Emergency Offices get repair and maintenance work of emergency vehicles. Audit observed that considerable time lapsed in getting unnecessary approval from the Rescue (HQ) against the SOP for repair and maintenance work of emergency vehicles. The emergency vehicles 21 remained off road for a significant period hampering the operational activities and smooth functioning of emergency service in the districts. The detail is given in Annex-V. The matter was pointed out to the management in August, 2018. Department replied that all emergency vehicles are exempted from tender procedure according to the financial rules of Punjab emergency Service. The reply of the management is not tenable even though Rescue-1122 is dispensed from tendering process. Despite of this exemption, Rescue 1122 not get repaired vehicle early as required. DAC in its meeting held on 13th December, 2018 directed that matter will be inquired at Administrative department level regarding delay in repair & maintenance of operational vehicles despite relaxation from PPRA rule. Audit recommends that the matter for unnecessary delay be inquired and operational vehicles be repaired on urgent basis in future.

PDP 275, 286, 302, 312, 334, 344, 357, 370(DEO Kasur, Sgh, Bwp, RYK, Jhang, Swl, Lodhran, Attock) 3.4.6 Undue favour to contractor for provision of pending items As per PFR-Vol-1 15.4 (a) All materials received should be examined, counted, measured and weighed, as the case may be, when delivery is taken, and they should be kept in charge of a responsible Government Servant. The passing and the receiving Government servants should see that the quantities are correct and their quality good, and record a certificate to this effect. The receiving Government servant should also be required to give a certificate that he has actually received the materials and recorded them in his appropriate stock registers. Rescue Headquarter Lahore procured Kinglong Ambulances from M/s Ahmed Medix and further provided to the District Emergency Offices for emergency services. These vehicles were required to be equipped / fabricated as per the specifications. During physical checking of vehicles audit observed that vehicles provided by supplier were not been inspected to verify the quantity / quality of the medical

22 emergency equipment required to be installed in the Ambulances. The detail is given in Annex-VI. Non-provision of medical equipment in accordance with contract specifications is not only loss to Public Exchequer but may hinder the adequate provision of first aid to victims etc. The matter was pointed out to the management in August/September 2018. Department replied that mostly pending items have been received. The reply of the Management is not acceptable because during physical verification said equipment were not available in the ambulance despite that these Ambulances have almost completed their useful life. DAC in its meeting held on 13th December, 2018 directed that the matter will be inquired within 60 days at Administrative department level regarding delay / non- providing pending items despite that ambulances have almost completed their useful life. The DAC also directed that liquidated damages may be recovered for the items received late and cost of the items not provided be recovered

Audit recommends implementation of the DAC decision.

(PDP 292, 278, 305, 325, 346, 376 DEO 1122 Sgh, Kasur, Bwp, RYK, Swl, Attock) 3.4.7 Non-transparent award of work - Rs 1.050 million According to Rule 4 of PPRA 2014, a procuring agency, while making any procurement, shall ensure that the procurement is made in a fair and transparent manner, the object of procurement brings value for money to the procuring agency and the procurement process is efficient and economical. As per rule 2.10 of Punjab Financial Rules Vol I, same vigilance should be exercised in respect of expenditure incurred from Government revenues, as a person of ordinary prudence would exercise in respect of the expenditure of his own money. DEO Lodhran awarded work to M/s Ahmed Medix (Pvt) limited of Rs 1.050 million on account of repair and maintenance of vehicles. Audit found that the firm is based at Lahore but the quotation was received at Lodhran. As per comparison of the quotation the firms quoted rate remained lowest. Audit found that the vehicles were transported to Lahore for repair and maintenance and consumed extra POL and other

23 expenses i.e. TA/DA of staff, hence it become higher than the other bidders. The detail of the expenditure is given in Annex-VII. The matter was pointed out to the management in September, 2018. In response department replied that the DEO Office investigated the matter and found out that all payments awarded to M/s Ahmad Medix (Pvt) Limited through ranking as lowest quoted rates do not affect commutative procurement process or raise any question mark on the transparency of the work”. The reply of the management is not acceptable because the department awarded the work in violation of PPRA rules and it was also not cost effective. DAC in its meeting held on 13th December, 2018 directed matter may be inquired at Administrative department level for awarding work to M/s Ahmad Medix in violation of canon of financial propriety Audit recommends implementation of the DAC decision and discontinuation of this practice.

(PDP 358, DEO 1122 Lodhran) Internal control weaknesses 3.4.8 Irregular prequalification of workshops Rule 17 of Punjab Emergency Service Financial Rules provides that the Service shall advertise, pre-qualify and shortlist a workshop for emergency repair of a category of equipment or vehicle in a district for ensuring timely repair and availability of an emergency vehicle and equipment for quick management of an emergency. The R&M committee comprising the head of repair and maintenance wing, District Emergency Officer, Emergency Officer and Transport Maintenance Inspector shall select the workshop. During audit of District Emergency Office, Muzaffargarh it was observed that R&M committee prequalified 05 workshops. Audit found following irregularities in the prequalification process: i. All three firms i.e. M/s Trade Channel, M/s Ehsan Fareed Trading company and M Sarfaraz & brother were owned and controlled by the same owner. 24

ii. All the above three firms were register with FBR on same address i.e. House no. 283, Block-7, Dera Ghazi Khan. iii. The prequalification forms were filled with same handwriting. iv. All three companies were registered with FBR as wholesaler instead of service provider. v. Bio data of technical staff of M/s Trade Channel, M/s Ehsan Fareed Trading Company were same. vi. Proof of 2S authorization was also not available. Audit is of the view that the prequalification of the workshop was not done with due diligence which raised question mark. The matter was reported to the management in September, 2018. The management replied that after careful examination of all the documents finally workshops were prequalified by the Head of R&M Wing and discrepancies identified by audit will be discussed accordingly. The reply is not tenable. The prequalification process was not transparent and was undue favour to a specific contractor. DAC in its meeting held on 14th December, 2018 directed to inquire the matter at Administrative Department level. Audit recommends implementation of the DAC decision.

(PDP 162, DEO 1122 Mgh) 3.4.9 Unauthorized opening of bank accounts by DDO Rule 9(1) of Punjab Treasury Rules states that a Government servant may not, except with the special permission of the Government, deposit in a Bank moneys withdrawn from the Consolidated Fund or the Public Account of the Province under the provisions of Section VII of these rules. Audit observed that District Emergency Officer Muzaffargarh is maintaining bank accounts without prior approval of the Finance Department and also retained balance as per detail given below: -

Sr. No Account Title Bank Account No Balance as on 30.06.18 (Rs) 1. District Emergency Officer NBP 4050109387 323,780 2. DDO Emergency Service Shehr Sultan NBP 4137157385 300 3. DDO Emergency Service Ali Pur NBP 4137157394 7

Audit is of the view that the opening of account without prior approval of Finance Department and retention of balance in DDO account is irregular. The matter was reported to the management in September, 2018. The management replied that bank accounts were opened for depositing cheque issued in favor of DDO. The reply is not tenable. The approval for opening of bank accounts was mandatory besides the unspent balance needs to be deposited into the Government Treasury. DAC in its meeting held on 13th December, 2018 directed to deposit the amount kept in DDO account into Government Treasury besides the case regarding opening of bank accounts may be referred to the Finance department. Audit recommends that matter be inquired for opening of bank accounts without prior approval of Finance Department besides the closing balances be deposited into government treasury under intimation to audit.

(PDP 177, DEO 1122 Mgh) 3.4.10 Fictitious purchase of tyres from vendor- Rs 1.44 million Rule 4 of Punjab Procurement Rules 2014 provides that a procuring agency, while making any procurement, shall ensure that the procurement is made in a fair and transparent manner, the object of procurement brings value for money to the procuring agency and the procurement process is efficient and economical. DEO Muzaffargarh procured tyres from different vendors. Audit found that procurement was made from the favored vendors and found following irregularities: a) As per bill No 96, tyres amounting to Rs 42,000 were purchased from M/s Bilal Trader & Stationers. The date of Job Satisfactory Report was 01.11.2016, whereas date of invoice generated by vendor was 21.11.2016.

This make the procurement dubious/fake. Moreover, the vendor is based at Bahawalpur and selection of the vendor is also favoritism. b) The procurement process was initiated and completed in one day which made whole process doubtful. M/s Pakistan Rubber & Tyre is Karachi based company and buying tyres from Karachi take at least two days to reach the good from Karachi to Muzaffargarh. The analysis of sample transaction was as below: -

Sr. No Description Date of event 1. Issuance of Work order 09.10.2015 2. Invoice generated by Pakistan Rubber & Tyre 09.10.2015 3. Tyre Transportation (From Karachi) 09.10.2015 4. Satisfactory Job done Report 09.10.2015 5. Entry in Vehicle Maintenance Register 09.10.2015 Audit is of the view that the purchase of tyres amounting to Rs 1.444 million raises serious doubts on the procurement process. The matter was reported to the management in September, 2018. The management replied that it contains the memo number and date of that bill not the date of generating the satisfactory report. The reply is not tenable. The record of R&M register checked by the audit showed the entry on the same date as well. DAC in its meeting held on 14th December, 2018 directed to inquire the matter at Administrative Department level. Audit recommends implementation of the DAC decision.

(PDP 163, DEO 1122 Mgh) 3.4.11 Physical verification of store / stock not conducted Para 15.16 of Punjab Financial Rules Vol-I provides that a physical verification of all stores must be made at least once in every year. A certificate of verification of stores with its results should be recorded whenever such a verification is carried out. During audit of Punjab Emergency Service (Rescue 1122), Headquarter and its District Emergency Offices it was found that physical verification of stores /

27 stocks as well as physical verification of physical assets (Vehicles, Machinery and Equipment and Furniture etc.) was not carried out by the department which is irregular and violation of Government rules. The matter was pointed out to the management in August 2018. Department replied that “Physical Inspection of the store have been made during the year under audit in accordance with the Punjab Emergency Service Financial Rules, 2007 and accordingly the reports have been submitted to concerned quarters. The reply of the management is not acceptable because no documentary evidences was provided to the audit. DAC in its meeting held on 14th December, 2018 directed that the physical verification of store and stock may be carried out through notified committee and reports may also be provided to Audit. Audit recommends implementation of the DAC decision. (PDP 273, 283, 298, 311, 327, 339, 356, 369, 378, Rescue 1122 HQ, DEO Kasur, Sgdh, Bwp, RYK, Jhang, Swl, Lodhran, Attock Performance 3.4.12 Surrender of funds due to non-completion of approved schemes – Rs 679.517 As per Accounting Policies and Procedure Manual Para (3.3.12.6), all anticipated saving must be surrendered to Government immediately as they are foreseen, but no later than 15th May each year. Government of Punjab approved different schemes under Annual Development Plan (ADP 2015-16) on account of establishment / expansion of Punjab Emergency service (Rescue 1122). Funds of Rs 1,046.455 million were allocated in F.Y. 2017-18 for completion of different schemes. The timelines for completion of each schemes were as under:

S# Name of Scheme PC-I COST Fund Fund Completio Date of Date of (million) released F.Y surrendered n period as Admin completion 2017-18 per PC-I Approval Establishment of Emergency Service in Tehsils covering under 1 448.246 31.286 30.400 2 years 13.11.15 13.11.17 ADP Schemes in 10-Tehsils/ Towns (Revenue) Establishment of Emergency 2 4168.685 15.510 15.200 3 years 21.06.16 21.06.19 Service in 62-Tehsils Establishment of Emergency 3 104.556 15.638 15.200 2 years 28.10.16 28.10.18 Service in Hassanabdal&Jand Establishment of Emergency 4 53.490 15.638 15.200 2 years 16.11.16 16.11.18 Service in Khokharan, Multan Establishment of Emergency 5 61.222 15.638 15.200 2 years 28.10.16 28.10.18 Service at Mustafabad, Kasur Establishment of Emergency 6 103.178 689.173 496.811 2 years 28.10.16 28.10.18 Service at Shad Bagh, Lahore. Establishment of Emergency 7 49.810 263.572 91.506 2 years 26.10.16 26.10.18 Service in Vehova Total 4989.187 1046.455 679.517 Audit observed that despite allocation of budget for completion of approved schemes, department failed to get the schemes completed within their scheduled time frame and surrendered funds of Rs 679.517 million. The matter was pointed out to the management in August, 2018. Department replied that the funds were surrendered only due to delay in decision making by the HPPC rather than ill planning & week monitoring by the Service. The reply of the management is not acceptable as the department not planning their schemes/ projects properly as the lapse of significant time resulted blockage of fund. DAC in its meeting held on 14th December, 2018 directed the Administrative Department will examine the matter to expedite the schemes for early completion. Audit recommends implementation of the DAC decision.

(PDP 265, Rescue 1122 HQ)

Others 3.4.13 Unverified expenditure on procurement of different items - Rs. 26.268 million As per rule 2.10(a)(1) of PFR Vol-I, every public officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money. Audit observed that District Government provided funds of Rs 26.683 million for Capacity Building of District Emergency Office (Rescue 1122) Jhang. The DEO Jhang deposited the amount into the bank account No. 4035395043 and incurred expenditure of Rs 26.268 million for procurement of medical and relief items and payment to daily wages staff. Audit found following irregularities: i. The amount incurred without intimation to Punjab Emergency Headquarter Lahore ii. Admin approval of the PC-1 was not obtained from the competent authority. iii. Expenditure incurred beyond the powers of DEO 1122. iv. Cash book of the expenditure was not maintained. v. Voucher register not prepared. vi. Incomplete tendering record produced to audit Audit is of the view that in absence of the above mentioned documents the expenditure incurred for procurements of medical/relief equipment and payment made to daily wages staff is doubtful. The matter was pointed out to the management in September, 2018. Department replied that the funds were received from District Government during the flood activities in year 2014-15 for POL charges, life jacket, food items, and also for procurement of relief items for flood activities through tender under the supervision of DCO and EDO (F&P). All the tender was process through District Government committee representative. All the bills were pre audited from DO (Accounts) office of the Executive District Officer (Finance and Planning). After this, cheques were issued

30 to concerned vendors. All the files along with bank statement, cheque book and other concerned record were handed over to audit team for checking. The reply of the management is not tenable because incomplete record was provided to the audit. DAC in its meeting held on 13th December, 2018 directed that matter may be probed by the DG, PES and report within 30 days

Audit recommends implementation of the DAC decision.

(PDP 328, DEO 1122 Jhang) 3.4.14 Violation of procedure for occupation of Government accommodation allotted to DEO - Rs 484,014 Punjab Emergency Service letter no. 5383/FW/13(PES) dated 11.11.2013 clarifies deductions on occupying designated official residence. The purpose of such accommodations is not to draw house rent allowance and ensure deduction of 5% house rent allowance from their salaries for optimal utilization of resources. Moreover, if they are not willing to reside in the emergency accommodation, the deduction of house rent allowance and 5% house rent from monthly salary is mandatory as per Government instructions. Audit observed that District Emergency Officer Muzaffargarh and Sahiwal did not occupy the purpose built accommodation and the same was remained vacant resulting in loss of Rs 484,014 to Government in form of recovery of HRA and 5% deduction. The matter was reported to the management in September, 2018. The DEO Muzaffargarh replied that the residence was converted into store during the vacant period as per request submitted by the store keeper due to no enough storage space available in the office. The DEO Sahiwal replied that he has not occupied the official residence completely. The reply is not tenable. The residence was purpose built residential accommodation instead it was used as a store. Non-occupying the residence resulted into loss to Government.

DAC in its meeting held on 13th and 14th December, 2018 directed to deposit the amount in Government Treasury

Audit recommends implementation of the DAC decision.

(PDP 176, DEO 1122 Mgh) (PDP 349, DEO 1122 Swl) 3.4.15 Loss due to irregular award of contract - Rs 2.880 million As per Sr. No 06 of tender published by Punjab Emergency Service (Rescue 1122) “Bids not fulfilling minimum requirements as stipulated in the bidding documents shall be declared non-responsive and financial proposals of such non- responsive / disqualified bidders shall be returned un-opened”. Punjab Emergency Service (Rescue 1122) called a tender on the basis of single stage two envelopes bidding method for procurement of 20,000 units of dead body sheets on 01.02.2018 and paid Rs 5.820 million @ of Rs 291/unit to M/s MIT solution. It was further observed that the 10 firms participated in tendering process out of which 06 firms were technically qualified. Detailed is given below:

S.No. Firm Name As per Technical Decision Financial Financia Difference evaluation of Bid (Rs) / l bid amount score/accepted technical per unit Rating (1st and firms committee 3rd lowest firm)

M/s Ahmed Medix (Pvt) 1 60 Accepted 392 6th Ltd 2 M/s Hashim Traders 42 Accepted 294 5th

3 M/s Umair Traders 53 Accepted 292 4th 2,880,000 4 M/s MIT Solution 41 Accepted 291 3rd

5 M/s Kareem & sons 60 Rejected 148.59 2nd due to low M/s Sakhi Ahsan 6 56 quality 146.99 1st Enterprises As per technical evaluation scores technical bids of the above mentioned firm were accepted. Technical proposal of firms at Sr. no. 5&6 were rejected by the technical committee due to low quality and awarded the contract to M/s MIT Solution

32 which obtained low score whereas rate was quoted high as compared to the rejected firms as clearly shown from table above. The following irregularities were pointed out by the audit: - 1. The firms were technically rejected but the financial bids of these firms were opened which is violation of PPRA rules 38 (2) and Sr.No.6 of tender documents. 2. No change in the specification of the Dead body sheets observed why chose 3rd lowest firm. 3. Sample test reports was not produced to audit. 4. Evidence of rejection by the technical committee not produced to audit. 5. Government sustained loss to state Rs. 2.880 million due to ignoring 1st lowest. The matter was pointed out to the management in August, 2018. Department replied that 06 firms participated out of which 04 firms were technically qualified and 02 firms M/s Kareem & Sons, and Sakhi Ahsan were rejected due to provision of low quality/ substandard samples. The reply of the management is not tenable as the management did not produce test reports of the said item and the technical score of the rejected firm did not support the stance of department. DAC in its meeting held on 14th December, 2018 directed that the matter may be probed at Administrative Department level. Audit recommends implementation of the DAC decision.

(PDP 266, Rescue 1122 HQ) 3.4.16 Doubtful expenditure on procurement of general store items - Rs 1.521 million As per supply order by Punjab emergency Service (Rescue 1122) Lahore dated 24.03.2018 to M/s MIT Solutions, Punjab emergency Service (Rescue 1122) Lahore gave a supply order for the procurement of General Stores Items amounting Rs 1,521,000.

Department incurred an expenditure of Rs 1.521 million for the procurement of General Stores items (Washing Powder) and payment made to M/s MIT Solution through cheque No. 3359292 dated 26.06.2018. It was further observed that M/s MIT Solution provided CDR (call deposit receipt) amounting Rs 1,521,000 dated 20.06.2018 which was valid till the date of audit. Audit is of the view that provision of CDR for whole amount of contract price i.e. Rs 1,521,000 created doubts about the procurement. The matter was pointed out to the Management in August, 2018. Department replied that the concerned vendor was directed to submit 5% Performance Guarantee in compliance of the work order awarded to him for supply of 10,000 kg washing powder. But the firm provided the CDR equivalent to the work order amount. The reply of the Management is not tenable as there is a doubt from the business point of view in sparing a huge fund of Rs 1,521,000 for CDR of 100% instead of 5% Performance Guarantee. DAC in its meeting held on 14th December, 2018 directed to refer the case to Finance department. Audit recommends implementation of the DAC decision.

(PDP 255, Rescue 1122 HQ)

Chapter-4 Civil Defence Department

4.1 Introduction of the Department Civil Defence department is attached department of Home department, Government of the Punjab with a mission of providing auxiliary service in War and Peacetime. The main object of Civil Defence is to pool national resources and conduct and control Civil Defence operation to minimize the effects of Enemy during war time. Civil defence department perform mainly following functions: -  Help civil administration in peace and war emergency through warden service and available resources.  Render first aid, evacuate causalities during emergencies.  Provide assistance, render advice in bomb disposal.  Conduct survey regarding fire preventive measures. 4.2 Comments on Budget & Accounts (Variance Analysis)

(Rs in Million) F.Y Budget Exp. Diff. 2017-18 542.121 527.971 14.150 The difference between fund released and expenditure of Rs 14.150 million was due to non-surrendering of unspent balance. 4.3 Brief Comments on the Status of Compliance with PAC Directives This Directorate General conducted audit of Disaster Management organizations of Punjab during the year 2016-17 for the first time and the Audit Reports generated by this office have not yet been discussed in PAC.

4.4 AUDIT PARAS Irregularity & Non Compliance 4.4.1 Non-surrender of unspent balances - Rs 12.455 million Para 14.3 of Punjab Budget Manual, all savings or unspent funds shall be surrendered / reported to Govt. through statement of excesses and surrenders, so that balances may be transferred / distributed to other needy departments of the Government to avoid the lapse of appropriations. Audit observed that funds placed at the disposal of following offices during the financial year 2017-18 were not utilized fully and the unspent balances were not reported to Government for the purpose of surrender before the close of fiscal year. Resultantly, a huge amount under different heads of accounts was lapsed amounting to Rs 12.455 million. (Rupees in million) Office Name Budget Allocation Expenditure Difference Incurred Director, Civil 58.543 54.395 4.148 Defence, Lahore Asstt. Director, 5.268 3.559 1.710 Faisalabad Civil Defence 78.870 72.273 6.597 Office, Faisalabad Total: 142.681 130.227 12.455 Audit is of the view that the non-surrender of saving and lapse of budget amounting to Rs 12.455 million is a serious negligence at the part of the management and poorest financial discipline maintained by the management. The matter was reported to the management in August, 2018. The management replied that final statement of Excess and Surrender was proposed with due diligence and utmost care. The saving was incurred due to the circumstance beyond control i.e. announcement of Supplementary Budget by Government of Punjab in May, 2018 resulting in late receiving of final statement of excess & surrender from Finance Department in May 15, 2018. The reply is not tenable. The amount was to be surrendered in time.

DAC in its meeting held on 11th November, 2018 decided that Para is kept pending till the appropriation accounts of the department is to be discussed by the PAC. Audit recommends that disciplinary action be initiated for non-surrender of funds besides regularization from the Finance Department.

(PDP 234, Director Civil Defence, Lahore) (PDP 239, AD Civil Defence, Faisalabad) 4.4.2 Doubtful expenditure on Emergency Service Station – Rs 1.500 million According to rule 2.10 of Punjab Financial Rules volume I, same vigilance should be exercised in respect of expenditure incurred from Government revenues, as a person of ordinary prudence would exercise in respect of the expenditure of his own money. Government revenues should not be utilized for the benefit of a particular person or section of the community Directorate of Civil Defence maintained an Emergency Service Station at Thokar Niaz Baig and deployed 03 Rescuer and 01 Fireman along with a Rescue van No. LEI-8650 and Suzuki ambulance no. LHR-5019 at this emergency station. An amount of Rs 1.500 million was incurred on the pay and allowances as well as on POL/repair and maintenance of vehicles. Audit found that this arrangement was a dummy just for placement/adjustment of staff and vehicles and the emergency service station was not functional. Following irregularities have been observed: - i. No landline number was installed for communication from Directorate, General Public or from any other department like Police to attend the emergency. ii. Vehicles were stationed without drivers. iii. Roster of the duty staff was not available iv. Record of emergencies attended was not available. Audit is of the view that amount incurred by the department was wasteful and unauthorized. The matter was reported to the management in August, 2018. The management replied that an Emergency Service Station (ESS) was established at 37

Thokar Niaz Baig and deputed 03 Rescuers and 01 Fire Man to deal with emergencies. A landline number installed but was disconnected during the construction of Orange line Train. An authentic record of all kind of emergencies attended is also available. The reply is not tenable. During audit it was observed that no operational vehicle in running condition was deployed, no landline number is installed and the directorate is not equipped with the necessary equipment to deal emergencies. DAC in its meeting held on 11th November, 2018 directed to probe the matter by the Administrative Department and submit report within 90 days. Audit recommends implementation of the DAC decision.

(PDP 235, Director Civil Defence, Lahore) 4.4.3 Wasteful expenditure on medical unit establishment – Rs 5.126 million According to rule 2.10 of Punjab Financial Rules volume I, same vigilance should be exercised in respect of expenditure incurred from Government revenues, as a person of ordinary prudence would exercise in respect of the expenditure of his own money. As per duties/functions of officers, the Assistant Director (Medical) is responsible for organization and implementation of the Civil Defence Casualty Service Schemes in all the classified towns of the Province. Furthermore, he is responsible for the demand, procurement, storage & maintenance of Civil Defence medical equipment required. A medical unit was established for organization and implementation of Civil Defence Casualty Service Schemes. An amount of Rs 5.126 million incurred during the financial year 2016-17 and 2017-18. Audit found that the key posts of Assistant Director (Medical) was vacant since more than 10 years hence the public money spent on this medical unit without yielding any output is wasteful.

The vacancy position of Medical Establishment is as under:

Sr. No. Name of Post BPS Sanctioned Filled Vacant Strength 1 Assistant Director (Medical) 17 01 - 01 2 Assistant 16 01 - 01 3 Stenographer 15 01 - 01 4 Senior Clerk 14 01 01 - 5 Junior Clerk 11 01 - 01 6 Store Keeper 07 01 01 - 7 Driver 04 08 - 08 8 Demonstrator-cum-Dispenser 01 01 01 - 9 Chowkidar 01 02 01 01 10 Naib Qasid 01 02 01 01 Total - 19 05 14 Audit is of the view that incurring of expenditure without contributing the core objective is wastage of government money. The matter was reported to the management in August, 2018. The management replied that several requests for appointment of Assistant Director (Medical) through transfer have been sent to Health Department. The staff of Medical Establishment is working under command of Provincial Rescue Officer. The Causality Scheme is under process in all classified towns under the control of Provincial Rescue Officer. The reply is not tenable. The vacancy of the post of medical officer shows that the objectives of the establishment of medical unit was not fulfilled and expenditure on this unit is wastage of public resources. DAC in its meeting held on 11th November, 2018 directed that it is a policy issue which requires submission of case to Administrative department for proper utilization of Government resources. Audit recommends that the medical unit may be closed and the existing staff may be deployed/utilized some other needed area of the department to save the government resources under intimation of audit.

(PDP 236, Director Civil Defence, Lahore)

Performance 4.4.4 Unverified emergencies attended by fire truck of Civil Defence Rule 2.33 of Punjab Financial Rules Vol I states that “Every Government servant should realize fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part. Director Civil Defence, Punjab incurred an amount of Rs 112,280 on account of POL and repair and maintenance of Fire Truck No. LEI 8462. Audit observed that record of emergency prima facie was not authentic. Therefore, the data of fire incidents dealt by Civil Defence for the FY 2017-18 was compared with the data of fire incidents reported and attended by Rescue 1122. On comparison it was observed that only one fire incident of Civil Defence matched with Rescue 1122. As per record, Civil Defence was regularly responding fire cases but the same were not reported by Rescue 1122. It is beyond understanding that Rescue 1122 being the first responder is unaware of such fire cases. It is pertinent to mention here that the Civil Defence record of fire incidents is not reliable and authentic as it is maintained manually. The comparison of data is given below: -

Fire Incident Reported by Sr. No Date Civil Defense Rescue 1122 1 3-Jul-17 Yes No 2 7-Jul-17 Yes No 3 16-Jul-17 Yes No 4 18-Jul-17 Yes No 5 18-Aug-17 Yes No 6 27-Oct-17 Yes No 7 8-Dec-17 Yes No 8 5-Jan-18 Yes No 9 8-May-18 Yes Yes Moreover, the current operational condition of fire truck and without any facility of water hydrant proved that fire truck did not attend fire emergencies as reported by the Civil Defence Directorate.

Audit is of the view that record of the emergencies maintained by the department is unverifiable and cannot be authenticated. The matter was reported to the management in August, 2018. The management replied that record of all kind of emergencies attended by ESS is authentic. All kind of emergencies attended are penned down in station diary and log books. All the fire calls have been verified by fire Brigade Office. Availability of the hydrant in the premises of Directorate of Civil Defence is in process. The reply is not tenable. The evidence provided by the department is not authentic. DAC in its meeting held on 11th November, 2018 directed to probe the matter by the Administrative Department. The TORs may be got vetted by the Audit. Audit recommends that the matter may be probed to check the authenticity of fire incidents and legitimacy of the expenditure incurred.

(PDP 237, Director Civil Defence, Lahore)

Annexures Annex-I (MFDAC) PDP Name of Subject Amount No. Formation in million 193 PDMA Punjab Non-imposition of liquidated damages on account of late 0.705 delivery of equipment - Rs 705,096 195 PDMA Punjab Weak contract Management on hiring of contractor for - turnkey project - Rs 82.937 million 202 PDMA Punjab Irregular payment of TPV not belonging to disaster 2.998 activities - Rs.2.998 million 208 DDMA Non establishment of stockpiles of disaster relief items for - Sargodha emergency situation as required under NDM Act 2010 210 DDMA No Disaster Management Plan at District Level - Sargodha 211 DDMA No Vulnerability and capacity assessment survey in Sargodha Sargodha District 214 DDMA Gujrat Non-functioning of District Fire Safety Committee (DFSC) - 215 DDMA Gujrat Non establishment of stockpiles of disaster relief items for - emergency situation as required under NDM Act 2010 217 DDMA Gujrat Non conducting of vulnerability and capacity assessment survey of Gujrat District 226 DDMA Jhang Non-functioning of DDMA Jhang - 227 DDMA Jhang Non Convening of meetings of DDMA - 230 DDMA Irregular release of funds to DEO Muzaffargarh - Rs 0.401 Muzaffargarh 401,696 161 DEO Non-surrender of unspent balances to Government - Rs. 6.15 Muzaffargarh 6.154 million 164 DEO Underutilization of power backup resources Muzaffargarh 165 DEO Abnormal expenditure on repair and maintenance of 5.35 Muzaffargarh ambulances – Rs 5.347 million 166 DEO Irregular shifting of communication system from wireless to Muzaffargarh mobile operator 168 DEO Irregular procurement of tyres in violation of PPR – Rs 1.26 Muzaffargarh 1.257 million 170 DEO Non-deduction of Punjab sales tax on services - Rs 211,330 0.21 Muzaffargarh 171 DEO Non-provision of 2s workshops facility for king long Muzaffargarh ambulances in violation of contract agreement 173 DEO Dubious payment through fictitious bills - Rs 662,344 0.66 Muzaffargarh 174 DEO Irregular procurement in violation of PPR – Rs 766,358 0.77 42

Muzaffargarh 175 DEO Misclassification of expenditure - Rs 882,924 0.88 Muzaffargarh 179 DEO Unauthorized purchase of medicines - Rs 599,666 0.60 Muzaffargarh 180 DEO Irregular local purchases from vendors not based at 0.39 Muzaffargarh Muzaffargarh - Rs 391,444 181 DEO Operational deficiency due to vacancy of key positions Muzaffargarh 184 DEO Non-adherence to quality service indicator - Muzaffargarh 245 Rescue-1122 Undue favour to the firm due to non-obtaining of 34.52 HQ performance guarantee – Rs 34.516 million 246 Rescue-1122 Irregular expenditure on account of printing and 28.76 HQ publication- Rs 28.761 million 248 Rescue-1122 Irregular procurement of medicine through rate contract - Rs 79.40 HQ 79.398 million 249 Rescue-1122 Irregular award of contract to m/s trade international Rs. 4.28 HQ 4.279 million 250 Rescue-1122 Non-deduction of Punjab sales tax on services – Rs 8.789 8.79 HQ million 252 Rescue-1122 Wrong deduction of Sindh sales tax instead of Punjab sales 0.99 HQ tax on services Rs 993,600 254 Rescue-1122 Less deduction of income tax Rs 4,242,515 , PST Rs 7.48 HQ 2,860,364 and media tax Rs 377,997 on account of advertisement and publicity 256 Rescue-1122 Irregular expenditure on account of procurement of tissue 1.05 HQ box- Rs 1.050 million 260 Rescue-1122 Undue favour to the firm due to non-renewal of 3.03 HQ performance guarantee – Rs 3.027 million 267 Rescue-1122 Expenditure on purchase of snorkel without signing of 690.32 HQ service level agreement (sla) Rs 690.320 million 269 Rescue-1122 Irregular appointment of staff of Punjab Emergency - HQ Services 271 Rescue-1122 Doubtful expenditure on POL by monitoring and evaluation 0.12 HQ officer Rs 119,857 274 DEO Kasur Unjustified expenditure on the procurement of tyres - Rs 0.39 389,400 275 DEO Kasur Irregular expenditure on account of repair and maintenance 0.53 of vehicles Rs 530,429 276 DEO Kasur Splitting of expenditure to avoid open tender Rs 2.358 2.36 million 277 DEO Kasur Loss to govt. due to non-deposit of sales tax Rs 3.485 3.49 million 287 DEO Sargodha Weak communication system for motorbike ambulance Rs 11.10 43

11.097 million 288 DEO Sargodha Irregular expenditure on repair and maintenance without 1.48 tendering Rs 1.479 million 289 DEO Sargodha Unjustified expenditure on the procurement of tyres Rs 2.38 2.381 million. 290 DEO Sargodha Splitting of expenditure to avoid open tender Rs 3.221 3.22 million 291 DEO Sargodha Irregular payment - Rs.3.888 million 3.89 295 DEO Sargodha Irregular procurement of general store & medical items 1.34 1.340 million 303 DEO Loss to govt. due to improper measure adopted by the 0.83 Bahawalpur department - Rs 831,209 304 DEO Unauthorized opening of bank account and non-deposit of - Bahawalpur profit into government treasury since 2011 307 DEO Doubtful payment - Rs 2.526 million 2.53 Bahawalpur 308 DEO Weak communication system for motorbike ambulance - Rs 11.10 Bahawalpur 11.097 million 313 DEO R.Y.Khan Wasteful expenditure without provision of fire vehicle and 17.089 fire equipment 317 DEO R.Y.Khan Non-deduction of income tax and pst – Rs 130,888 0.13 319 DEO R.Y.Khan Discontinuation of life insurance after payment of premium 0.51 - Rs. 507,080 321 DEO R.Y.Khan Irregular payment of daily allowance of Rs. 77,380 0.77 324 DEO R.Y.Khan Unauthorized opening of bank account - 329 DEO Jhang Irregular purchase from GST non-active firm - Rs 3.783 3.78 million 336 DEO Jhang Unauthorized opening of bank account - 337 DEO Jhang Unjustified expenditure on the procurement of tyres Rs 1.99 1.994 million 340 DEO Sahiwal Irregular procurement of stationery & medical item without 1.90 tendering - Rs 1.902 million 341 DEO Sahiwal Discontinuation of life insurance after payment of premium 0.25 Rs 251,137 345 DEO Sahiwal Unauthorized opening of bank account - 347 DEO Sahiwal Weak communication system for motorbike ambulance - Rs 11.10 11.097 million 350 DEO Sahiwal Doubtful procurement of general stores items & repair work 0.51 of equipment - Rs. 512,190 351 DEO Sahiwal Unauthorized allotment and replacement of vehicles in - violation of staff car rules 352 DEO Sahiwal irregular expenditure on account of repair and maintenance 12.46 of vehicles – Rs 12.461 million 353 DEO Sahiwal Unjustified expenditure on the procurement of tyres - Rs 0.83 831,940 44

354 DEO Sahiwal Doubtful utilization of cash received as a donation - Rs 0.16 161,000 359 DEO Lodhran Non deduction of PST 0.175 362 DEO Lodhran Irregular expenditure on procurement of general stores items 0.41 and repair work of equipment - Rs 407,238 363 DEO Lodhran Irregular procurement of medical item without tendering - 0.42 Rs. 418,656 375 DEO Attock Unauthorized opening of bank account - 238 Director Civil Non notifying the draft policy 2015 - Defence, Lahore 242 Civil Defence No collection / transfer of funds @1% of the total income of - Office, Lahore Municipal Committees / Union Council

Annex II to Para1.4.4 Physical verification of store / stock not conducted Sr. No Financial Year Head Description Amount 1 2012-13 A-03970 Others 3,553,346,123 2 2013-14 A-05270 Others 1,180,797,645 3 2014-15 A-03942 Cost of other stores 876,078,596 4 2014-15 A-05270 Others 16,853,453,631 5 2014-15 A-09301 Food 508,506,770 6 2015-16 A-03942 Cost of other stores 704,624,124 7 2015-16 A-05270 Others 20,383,262,918 8 2015-16 A-09301 Food 757,908,423 9 2015-16 A-09501 Transport 3,742,000 10 2016-17 A-03942 Cost of other stores 625,366,236 11 2016-17 A-09301 Food 94,243,948 12 2016-17 A-09501 Transport 31,075,500 13 2017-18 A-03942 Cost of other stores 267,041,622 14 2017-18 A-09301 Food 3,778,145 Total 45,843,225,681

Annex III to Para 2.4.5 Unverified relief items dispatched by PDMA to DDMAs Date Veh # Dispatch No # Tent Boat 19 ft. Boat 24 ft. OBM 40 HP Life Ring De- watering Plastic Mate Set

13.06.17 LES:1469 347 - 1 - 1 - - 200 14.06.17 LPT:2954 347 - - 1 1 100 - - 14.06.17 LOK:8170 347 - - 1 1 - - - 14.06.17 LOK:4878 347 - 1 - 1 - - - 14.06.17 LES:1580 347 200 ------14.06.17 LES:4674 347 - 1 - 1 - - - 14.06.17 LOT:2909 347 - - - - - 5 - 14.06.17 LOK:685 347 - - - - - 5 - 14.06.17 JGA:399 347 - - 1 1 - - - Total Quantity Received 200 3 3 6 100 10 200 Per unit cost of relief items 7900 199786 334786 281970 6250 210000 820 Total cost 1,580,000 599,358 1,004,358 1,691,820 625,000 2,100,000 164,000 Total 7,764,536 Date Vehicle # Dispatch No # Tent Boat 24 ft OBM 40 HP Life Ring De- watering Mosquito Nets Plastic Mate Set

11.06.17 LES:5402 321 - 1 1 11.06.17 LES:5824 321 - 1 1 - - - - 11.06.17 LES:5708 321 - 1 1 - - - - 11.06.17 LES:8993 321 - 1 1 - - - - 11.06.17 LES:8994 321 - 1 1 - - - - 11.06.17 LES:8985 321 - 1 1 - - - - 11.06.17 LET:1737 321 50 - - 25 5 50 50 22.7.17 LES-8988 477 - - - - 5 - - Total Quantity Received 50 6 6 25 10 50 50 Per unit cost of relief items 7,900 199,786 334,786 281,970 210,000 - 820 Total cost 395,000 1,198,716 2,008,716 7,049,250 2,100,000 - 41,000 Date Veh # Dispatch Tent Boat 24 ft De- wetring 5-KV Masquito Plastic No # Ste Genrator Nets Mate 13-Jun-17 LWN:1266 334 - 1 - - - - 13-Jun-17 LRC:5260 334 - - 10 - - - 13-Jun-17 LES:2321 334 200 - - - - - 13-Jun-17 LES:3915 334 200 - - - - - 13-Jun-17 GTI:194 334 200 - - - - - 13-Jun-17 LES:2341 334 200 - - - - - 13-Jun-17 LRC:2175 334 200 - - - - - 13-Jun-17 LES:1210 334 200 - - - - - 13-Jun-17 LES:2517 334 200 - - - - - 13-Jun-17 LES:8019 334 200 - - - - - 13-Jun-17 LES:5371 334 200 - - - - - 13-Jun-17 LES:3135 334 200 - - - - - 13-Jun-17 LRJ:8265 334 200 - - - - - 13-Jun-17 LES:4472 334 200 - - - - - 13-Jun-17 LES:6780 334 200 - - - - - 13-Jun-17 LES:6613 334 200 - - - - - 13-Jun-17 LES:4807 334 200 - - - - - Total Quantity Received 3,000 1 10 - - - Per unit cost of relief items 7900 199786 281970 0 0 0 Total cost 23,700,000 199,786 2,819,700 - - - Grand Total 47.277 million

Annex-IV to Para 3.4.4 Fictitious bills on account of repair of vehicles Bill No. Date Firm Name Bill Cheque Date Amount No 18 25.08.17 M/s Syed Sons 14,480 2964547 30.08.17 32 25.08.17 M/s Syed Sons 27,695 2964547 30.08.17 85 16.10.17 M/s Syed Sons 47,105 3024173 23.10.17 86 16.10.17 M/s Syed Sons 48,788 3024173 23.10.17 87 16.10.17 M/s Syed Sons 45,720 3024173 23.10.17 88 16.10.17 M/s Syed Sons 64,680 3024173 23.10.17 89 16.10.17 M/s Syed Sons 47,477 3024173 23.10.17 90 16.10.17 M/s Syed Sons 37,292 3024173 23.10.17 91 16.10.17 M/s Syed Sons 30,267 3024173 23.10.17 92 16.10.17 M/s Syed Sons 44,889 3024173 23.10.17 93 16.10.17 M/s Syed Sons 49,719 3024173 23.10.17 94 16.10.17 M/s Syed Sons 68,397 3024173 23.10.17 95 16.10.17 M/s Syed Sons 41,500 3024173 23.10.17 96 16.10.17 M/s Syed Sons 45,698 3024173 23.10.17 97 16.10.17 M/s Syed Sons 49,938 3024173 23.10.17 8 08.08.16 M/s Syed Sons 91,468 2738420 25.08.16 9 08.08.16 M/s Syed Sons 98,448 2738420 25.08.16 10 08.08.16 M/s Syed Sons 28,992 2738420 25.08.16 31 02.09.16 M/s Syed Sons 57,295 2760647 29.09.16 32 02.09.16 M/s Syed Sons 75,837 2760647 29.09.16 63 25.10.16 M/s Syed Sons 99,076 2760831 31.10.16 64 25.10.16 M/s Syed Sons 27,144 2760831 31.10.16 65 25.10.16 M/s Syed Sons 95,642 2760831 31.10.16 66 25.10.16 M/s Syed Sons 77,872 2760831 31.10.16 67 25.10.16 M/s Syed Sons 99,179 2760831 31.10.16 84 08.12.16 M/s Syed Sons 37,973 2799108 13.12.16 108 02.01.17 M/s Syed Sons 98,860 2799367 16.01.17 109 02.01.17 M/s Syed Sons 82,871 2799367 16.01.17 110 02.01.17 M/s Syed Sons 79,266 2799474 31.01.17 111 02.01.17 M/s Syed Sons 58,785 2799474 31.01.17 113 03.01.17 M/s Syed Sons 99,021 2799367 16.01.17 126 03.01.17 M/s Syed Sons 97,596 2799498 07.02.17 136 07.02.17 M/s Syed Sons 99,809 2870628 20.02.17 137 07.02.17 M/s Syed Sons 97,094 2870628 20.02.17 138 07.02.17 M/s Syed Sons 99,610 2870628 20.02.17 154 01.03.17 M/s Syed Sons 37,579 2870780 09.03.17 155 01.03.17 M/s Syed Sons 77,527 2870780 09.03.17 156 01.03.17 M/s Syed Sons 96,127 2870780 09.03.17

157 01.03.17 M/s Syed Sons 86,094 2870780 09.03.17 161 02.03.17 M/s Syed Sons 83,381 2870780 09.03.17 162 03.03.17 M/s Syed Sons 98,498 2870780 09.03.17 170 16.03.17 M/s Syed Sons 88,289 2870894 25.03.17 79 11.11.15 M/s Syed Sons 29,344 2556706 20.11.15 88 17.11.15 M/s Syed Sons 15,912 2556737 26.11.15 103 10.12.15 M/s Syed Sons 56,033 2556893 16.12.15 104 10.12.15 M/s Syed Sons 34,023 2556893 16.12.15 113 28.12.15 M/s Syed Sons 59,650 2633031 02.01.16 114 28.12.15 M/s Syed Sons 98,985 2633031 02.01.16 156 25.02.16 M/s Syed Sons 99,743 2633496 29.02.16 157 25.02.16 M/s Syed Sons 34,818 2633496 29.02.16 158 25.02.16 M/s Syed Sons 63,714 2633496 29.02.16 159 25.02.16 M/s Syed Sons 96,526 2633496 29.02.16 182 01.04.16 M/s Syed Sons 94,076 2647411 14.04.16 183 01.04.16 M/s Syed Sons 94,472 2647411 14.04.16 184 01.04.16 M/s Syed Sons 99,514 2647411 14.04.16 185 01.04.16 M/s Syed Sons 19,635 2647411 14.04.16 228 06.06.16 M/s Syed Sons 20,027 2705277 17.06.16 229 06.06.16 M/s Syed Sons 77,206 2705277 17.06.16 230 06.06.16 M/s Syed Sons 72,835 2705277 17.06.16 231 06.06.16 M/s Syed Sons 99,267 2705277 17.06.16 232 06.06.16 M/s Syed Sons 98,405 2705277 17.06.16 245 15.06.17 M/s Syed Sons 83,541 2705299 18.06.16 246 15.06.17 M/s Syed Sons 73,782 2705299 18.06.16 247 15.06.17 M/s Syed Sons 88,148 2705299 18.06.16 248 15.06.17 M/s Syed Sons 1,350 2705299 18.06.16 Total 4,343,984

Annex-V to Para 3.4.5 Unnecessary delay in executing repair and maintenance work of emergency vehicles Vehicle Firm Name Description Delay Period No. (months) SGA-07 M/s CGS traders Major accident repair 11 work SGF-03 M/s Pakistan rubber & tyre Purchase of Tyres 3 Co.

KSA-02 Khobaib Traders Engine overhauling 2 complete KSF-01 Ghafoor& Sons PTO Gear Box 1 BA-03 M/s Ahmed Medix EMT Cabin Re- 4 fabrication BA-04 -do- EMT Cabin Re- 4 fabrication BA-06 -do- EMT Cabin Re- 6 fabrication BA-05 -do- EMT Cabin Re- 10 fabrication BA-01 -do- EMT Cabin Re- 6 fabrication RYR-01 M/s Rubber & tyre Store Tyre replacement 4 RF-02 4 RF-04 3 WB-01 1 RECV- 5 01 WRT-01 5 JNF-01 Accident/ damage work 4 SLA-01 Complete fabrication 10 EMT Cabin SLA-02 Complete accident work 24 -do- Fabrication EMT cabin SLA-03 -do- 4 SLA-04 -do- 7 LDA-2 EMT cane Fabrication 2 LDA-4 1.5 ATA-5 AL Riaz Traders Accident Damage 4

ATA-8 Prefect Enterprises Accident Damage 10

ATR 01 H.S traders Tyre Change 3 ATF 01 3

Annex-VI to Para 3.4.6 Undue favour to contractor for provision of pending items Vehicle Pending item Vehicle Status (Pending / No. Receiving Date Delay) HZA-1 Portable Ventilator (01), Filter of 25.06.16 Pending APR mask (02) JACK set 10 months Wheel Spanner 10 months Tool Kit 10 months A.E.D 10 months Dead body bags 06 month Foldable stair Chair 10 months HZA-2 Portable Ventilator (01) 25.06.16 Still pending Foldable stair Chair 10 months Dead body bags 06 month A.P.R mask 10 months HZF-1 Manual Ascender and Descender (02 19.07.16 Pending Pairs) Metal Blades of Angular Grinder (10) Extra Chain of Chain Saw (01) SLA-01 Head Immobilizer 03.01.16 Pending

RYA-02 Automatic External Defibrillator 13 month delay RYA-03 RYA-04 SLA-01 Head Immobilizer 03.01.16 Pending RYA-02 Automatic External Defibrillator 13 month delay RYA-03 RYA-04 RYA-01 Adjustable head immobilizer with 29.02.16 6 month RYA-02 forehead and chin strap protection RYA-03 system within the spinal board RYA-04 SGA-02 Adjustable head immobilizer with 01.03.16 Pending SGA-06 forehead 01.03.16 Pending and chin strap protection system within the spinal board KSA-5 Portable ventilator 20.06.13 Pending KSA-6 -do- KSA-7 -do- BA-04 Head Immobilizer 07.03.16 08 months BA-04 Automatic External Defibrillator 07.03.16 08 months BA-05 Head Immobilizer 07.03.16 08 months

BA-05 Automatic External Defibrillator 07.03.16 08 months BA-06 Head Immobilizer 07.03.16 08 months BA-06 Automatic External Defibrillator 07.03.16 08 months BA-07 Head Immobilizer 07.03.16 08 months BA-07 Automatic External Defibrillator 07.03.16 08 months HAS-01 Portable Ventilator (01) 21.06.16 05 months HAS-01 Mouth Opener (01) 21.06.16 05 months HAS-01 Dead Body Sheat (10) 21.06.16 05 months HAS-02 Portable Ventilator (01) 21.06.16 05 months HAS-02 Mouth Opener (01) 21.06.16 05 months HAS-02 Dead Body Sheat (10) 21.06.16 05 months HRF-01 Fire Extinguisher Halotron 2KG (01) 28.07.16 Pending HRF-01 RPM Meter (01) 20.03.16 Pending HRF-01 Manual Ascender (02 pairs) 07.03.16 Pending HRF-01 Manual Descender (02 pairs) 20.06.16 Pending

Annex-VII to Para 3.4.7 Non transparent award of work S. Bill vehicle Name of firm Amount quoted Work award amount No. No. No. without GST including GST Ahmed Medix LHR 200,900 235,052 1 134 LDA-2 Bilal Traders BWP 230,220 SaimENt.BWP 242,300 Ahmed Medix LHR 214,550 241,429 2 132 LDA-4 Bilal Traders BWP 238,320 SaimENt.BWP 250,000 Ahmed Medix LHR 85,000 99450 3 82 LDA-1 HamzaEnt. BWP 97,000 SaimENt.BWP 95,000 Ahmed Medix LHR 80,000 93,600 4 85 LDA-1 HamzaEnt. BWP 92,000 SaimENt.BWP 90,000 Ahmed Medix LHR 75,500 88,335 5 71 LDA-3 Sial&Co. BWP 85,400 SiddiqueEnt. BWP 83,000 Ahmed Medix LHR 79,550 93,073 6 72 LDA-3 Sial & Co. BWP 92,405 Siddique Ent. BWP 88,800 Ahmed Medix LHR 85,150 99,625 7 83 LDA-1 Hamza Ent. BWP 95,000 Saim Enterprises BWP 97,370 Ahmed Medix LHR 85,000 99,450 8 81 LDA-3 Bilal Traders BWP 95,000 Sial & Co. BWP 96,800 Total (Rs) 1,050,014