Audit Report on the Accounts of District Government Chitral Audit Year 2013-14 Auditor General of Pakistan

AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT CHITRAL

AUDIT YEAR 2013-14

AUDITOR GENERAL OF PAKISTAN

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS ...... i

Preface ...... ii

EXECUTIVE SUMMARY ...... iii

SUMMARY TABLES & CHARTS ...... vii Table 1: Audit Work Statistics ...... vii Table 2: Audit observations Classified by Categories ...... vii Table 3: Outcome Statistics ...... viii Table 4: Table of Irregularities pointed out ...... ix

CHAPTER 1 ...... 1 1.1 District Government Chitral ...... 1 1.1.1 Introduction ...... 1 1.1.2 Brief Comments on Budget and Expenditure (Variance Analysis) .... 1 1.1.3 Comments on the status of compliance with ZAC / PAC Directives .. 2 1.2 AUDIT PARAS ...... 3

1.2.1 Misappropriation/ Fraud ...... 3 1.2.2 Non Production of Record ...... 5 1.2.3 Irregularity/ Non compliance ...... 6 1.2.4 Internal Control Weaknesses ...... 12

ANNEXURE ...... 17

ii ABBREVIATIONS AND ACRONYMS

AA Administrative Approval AP Advance Para ADP Annual Development Plan AG Accountant General AOM&R Annual Ordinary Maintenance and Repair BHU Basic Health Unit BOQ Bill of Quantity CPWA Code Central Public Works Account Code CPWD Code Central Public Works Department Code CSR Composite Schedule of Rate C&W Communication and Works DAC Departmental Accounts Committee DAO District Account Officer DCO District Coordination Officer DG Director General DHQ District Headquarter EDO Executive District Officer GFR General Financial Rules GGDC Government Girls Degree College IPSAS International Public Sector Accounting Standards KPK Khyber Pakhtunkhwa MB Measurement Book MCC Medicine Coordination Cell MS Medical Superintendent PAC Public Accounts Committee PAO Principal Accounting Officer PC-I Planning Commission One PPHI People Primary Health Initiative RDA Regional Directorate of Audit RHC Rural Health Center TE Transfer Entry TS Technical Sanction WUA Water User Association XEN Executive Engineer ZAC Zilla Accounts Committee

Preface

Articles 169 &170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Sections 8 and 12 of the Auditor General‟s (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001, Section-115 of the Khyber Pakhtunkhwa Local Government Ordinance, 2001 (as amended) and Section 168 of Local Government Act 2012 require the Auditor General of Pakistan to conduct audit of the receipts and expenditure of District Fund and Public Account of District Government.

The report is based on audit of the accounts of various offices of District Government, Chitral for the financial years 2011-12 & 2012-13. The Director General of Audit, District Governments, Khyber Pakhtunkhwa conducted audit during 2013-14 on test check basis with a view to reporting significant findings to the relevant stakeholders.

Audit findings indicate the need for adherence to the regularity framework besides instituting and strengthening internal controls to avoid recurrence of similar violations and irregularities.

The observations included in this Report have been finalized in the light of written responses of the Departments. Requests for convening of DAC meeting were made which were not convened till finalization of this report.

The Audit Report is submitted to the Governor of Khyber Pakhtunkhwa in pursuance of Article 171 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Section 115 of Khyber Pakhtunkhwa Local Government Ordinance, 2001 (as amended), for causing to be laid before the Provincial Assembly of Khyber Pakhtunkhwa.

Islamabad (Muhammad Akhtar Buland Rana) Dated: Auditor General of Pakistan

EXECUTIVE SUMMARY

The Director General District Governments Audit, Khyber Pakhtunkhwa carries out the audit of 26 District Governments. Regional Directorate of Audit (RDA) Swat, on behalf of the DG District Governments Audit, Khyber Pakhtunkhwa carries out the audit of five District Governments namely Swat, Shangla, Dir Upper, Dir Lower and Chitral. This Regional Directorate has a human resource of 10 officers and staff, a total of 3030 mandays. The annual budget amounting to Rs12.550 million was allocated to this office during the financial year 2012-13. The office is mandated to conduct regularity (financial attest audit and compliance with authority audit) and performance audit of programmes/ projects.

District Government, Chitral conducts its operations under Khyber Pakhtunkhwa Local Government Ordinance, 2001 (as amended) and Local Government Act 2012. It comprises one Principal Accounting Officer (PAO) covering seven groups of offices i.e. Finance & Planning, Revenue, Works & Services, Education, Health, Community Development and Agriculture. Financial provisions of the Ordinance describe the Government as District Local Fund and Public Account for which Annual Budget Statement is authorized by the District Administrator in the form of budgetary grants as per Government of Khyber Pakhtunkhwa, Local Government and Rural Development Department notification No. SO(E- I)E&AD/9-49/2010 dated 20th February 2010.

Administratively, District Chitral is subdivided into two tehsils namely Chitral and Mastuj. District Administration comprises Zilla Nazim/District Administrator and Deputy Commissioner

Audit Objectives

Audit was conducted with the objectives to ensure that: 1. Money shown as expenditure in the accounts was authorized for the purpose for which they were spent. 2. Expenditure incurred was in conformity with the law, rules and regulations framed to regulate the procedure for expending public money.

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3. Every item of expenditure was incurred with the approval of the competent authority in the Government for expending the public money. 4. Public money was not wasted. 5. The assessment, collection and allocation of revenue were done in accordance with the law and there was no leakage of revenue which legally should come to Government. a. Audit Methodology

Audit was carried out against the standards of financial governance provided under various provisions of the Khyber Pakhtunkhwa LGO, 2001 (as amended), GFR Vol-I & II, Delegation of Financial Powers and other relevant overriding laws, which govern the propriety of utilization of the financial resources of the District Government in accordance with the regularity framework provided by the relevant laws.

The selection of the audit formations i.e. DDOs was made keeping in view the significance and risk assessment, samples were selected after prioritizing risk areas by determining significance and risk associated with identified key controls. Sample size selected for audit ranged from 10% to 35%. b. Expenditure audited

Total expenditure of the District Government Chitral for the financial year 2012-13, was Rs2,374.670 million covering one PAO and 81 formations. Out of this, Regional Directorate Audit (RDA) Swat audited expenditure of Rs633.670 million which, in terms of percentage is 27% of auditable expenditure. Four (04) formations were planned in Audit Plan and 100% achievement against the planned activities was made. c. Receipts audited

The receipts of District Chitral for the financial year 2012-13, were Rs4.271 million. Out of this, RDA Swat audited receipts of Rs1.495 million which, in terms of percentage, is 35% of auditable receipts.

d. Recoveries at the instance of audit

Recovery of Rs17.686 million was pointed out during the audit. However no recovery was effected till the finalization of this report. All the recoveries pointed out were not in the notice of the executive before audit.

e. Desk Audit

The audit year 2013-14 witnessed intensive application of desk audit techniques in RDA. This was facilitated through SAP connectivity, review of permanent files which helped auditors in understanding the systems, procedures, environment, and the audited entity before starting field activity. Desk Audit greatly facilitated in the identification of high risk areas for substantive testing in the field.

f. Changes in Rules, Practices and Systems

On pointation of audit, the management of the District Government agreed to conduct physical verification of the government assets. The management also agreed to deposit various government dues into government treasury. Audit stressed upon reconciliation of receipts and expenditure with the respective accounts office to which they agreed.

g. Key audit findings of the report; i. Fraud and Misappropriation of Rs3.588 million was noted in 2 cases.1 ii. Non production of record of Rs31.109 million was noted in 1 case.2 iii. Irregularity/ non-compliance of rules Rs28.080 million were noted in 06 cases. 3 iv. Internal control weaknesses of Rs69.301 million were noted in 06 cases.4 Minor irregularities/weaknesses pointed out during the audit are being pursued separately with the authorities concerned, as in Annex-A.

1 1.2.1.1, 12.1.2 2 1.2.2.1 3 1.2.3.1, 1.2.3.2, 1.2.3.3, 1.2.3.4, 1.2.3.5, 1.2.3.6 4 1.2.4.1,1.2.4.2, 1.2.4.3, 1.2.4.4, 1.2.4.5, 1.2.4.6 v

Recommendations i. Disciplinary action needs to be taken to stop the practice of violation of the rules and regulations in spending the public money. ii. Strenuous efforts need to be made by the departments to recover long outstanding dues on account of water charges. iii. Departments need to strengthen internal controls mechanisms to ensure that lapses of the kind reported in this audit report are preempted and fair value for money is obtained from public spending. iv. Deduction of taxes on supplies and contracts need to be ensured. v. Lapsed deposits need to be timely credited into treasury.

SUMMARY TABLES & CHARTS

Table 1: Audit Work Statistics (Rs in million) S. No Description No. Budget 1 Total Entities (PAO) in Audit Jurisdiction 01 *2,378.941 2 Total formations in audit jurisdiction 81 2,378.941 3 Total Entities (PAO) Audited 01 #635.165 4 Total formations Audited 04 635.165 5 Audit & Inspection Reports 04 635.165 6 Special Audit Reports - - 7 Performance Audit Reports - - 8 Other Reports - - *Included receipt of Rs4.271 million. #Included receipt of Rs1.495 million.

Table 2: Audit observations Classified by Categories (Rs in million) Amount Placed under S. No Description Audit Observation 1 Unsound asset management - 2 Weak financial management 31.668 3 Weak Internal controls relating to financial management 69.301 4 Others 31.109 Total 132.078

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Table 3: Outcome Statistics (Rs in million) Expenditure Total on Acquiring Total Civil last S No Description Physical Receipts Others Current Works year Assets year

(Procurement) Outlays 490.831 1 13.528 137.759 1.495 482.383 635.165 Audited Amount Placed under Audit 2 0 26.549 - 105.529 132.078 255.861 Observations /Irregularities of Audit Recoveries Pointed Out 3 at the 0 11.983 - 5.703 17.686 8.928 instance of Audit Recoveries Accepted /Established 4 0 0 0 5.703 5.703 0.597 at the instance of Audit Recoveries Realized at 5. ------the instance of Audit

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Table 4: Table of Irregularities pointed out (Rs in million) Amount Placed S. No. Description under Audit Observation Violation of Rules and regulations, principle of propriety and 1 22.194 probity in public operation Reported cases of fraud, embezzlement, thefts and misuse of 2 0 public resources. Accounting Errors (accounting policy departure from NAM1, misclassification, over or understatement of account balances) 3 0 that are significant but are not material enough to result in the qualification of audit opinions on the financial statements.

4 Quantification of weaknesses of internal control systems. 69.301

Recoveries and overpayment, representing cases of establishment 5 5.703 overpayment or misappropriations of public monies

6 Non-production of record 31.109

7 Others, including cases of accidents, negligence etc. 3.77

Total 132.078

1 The Accounting Policies and Procedures prescribed by the Auditor General of Pakistan which are IPSAS(Cash). ix

CHAPTER 1

1.1 District Government Chitral

1.1.1 Introduction

Activities of District Government are managed through offices of District Coordination Officer and Executive District Officers under Khyber Pakhtunkhwa Local Government Ordinance 2001 (LGO 2001). Each group of District Offices consists of an Executive District Officer (EDO). The EDO by means of a standing order distributes the work among the officers, branches, and/or sections of each district office. Following is the list of departments which manages the activities of District Government.

1. District Coordination Officer (DCO) 2. Executive District Officer (Agriculture) 3. Executive District Officer (Community Development) 4. Executive District Officer (Education) 5. Executive District Officer (Finance and Planning) 6. Executive District Officer (Health) 7. Executive District Officer (Revenue) 8. Executive District Officer (Works and Services)

Under Section 29(k) of the Khyber Pakhtunkhwa LGO 2001, Executive District Officer (EDO) acts as Departmental Accounting Officer for his respective group of offices and he is responsible to the District Accounts Committee of the Zilla Council. All departments perform functions / activities under provisions of LGO, 2001, Khyber Pakhtunkhwa District Government Rules of Business, 2001 and provisions of Local Government Act 2012.

1.1.2 Brief Comments on Budget and Expenditure (Variance Analysis) (Rs in million) %age 2012-13 Budget Expenditure Saving/Excess Excess/Saving Salary 2202.8 2,059.72 143.08 6.495 Non-salary 235.25 234.846 0.40 0.170 Developmental 123.189 80.103 43.09 34.978 Total 2561.252 2,374.67 186.57 7.284

A budget of Rs2,561.252 million was allocated, against which an expenditure of Rs2,374.67 million was incurred by the District Government, Chitral with a saving of Rs186.57 million during 2012-13.

(Rs in million)

Detail is given at annex-B

1.1.3 Comments on the status of compliance with ZAC / PAC Directives

The audit reports pertaining to following years have been submitted to the Governor of Khyber Pakhtunkhwa. Detail of PAC/ZAC meetings is given below:

S No Audit Year PAC/ZAC meeting convened /Not convened 1. 2002-03 Not convened 2. 2003-04 Not convened 3. 2004-05 Not convened 4. 2005-06 Not convened 5. 2006-07 Not convened 6. 2007-08 Not convened 7. 2008-09 Not convened 8. 2009-10 Not convened 9. 2010-11 Not convened 10 2011-12 Not convened 11. 2012-13 Not convened

1.2 AUDIT PARAS 1.2.1 Misappropriation/ Fraud

1.2.1.1 Misappropriation on account of tube well boring - Rs 2.127 million

According to Para 23 of GFR Vol:-I every government officer should realize fully and clearly that he will be held personally responsible for any loss sustained by government through fraud or negligence either on his part or on the part of is subordinate staff .

Executive Engineer C&W Division Chitral paid Rs2,127,373 to a contractor for boring of tube well for quantity of 300 M @ 6864.41 /m in the work “Constt: of staff/student hostel SH: 50 student hostel in GGDC Booni” vide VR No.45/B dated 25/6/2013. Boring work was claimed twice in a single work which was irregular and leads to misappropriation.

Audit observed that the misappropriation occurred due to weak financial management, which resulted in loss to government.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as payment for boring work was allowed twice.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery and action against the person (s) at fault. AP No 10 (2012-13) (AC-I)

1.2.1.2 Misappropriation on account of water user association – Rs1.462 million

District Officer On Farm Water Management (OFWM) Chitral paid Rs1,461,608 to the water user associations on account of 04 water courses during 2006-07 and 2010-11 as detailed below. Neither efforts were made to complete the schemes till date of audit i.e. 24.04.2013 nor the amount recovered. Misappropriation cannot be ruled out.

1st Installment paid 2nd Installment paid S.No Name of W/C Total(Rs) Remarks Date Amount(Rs) Date Amount(Rs) 1 Azogai W/C 19.6.11 478,125 - - 478,125 In progress 2 Drunik W/C 19.6.11 354,105 - - 354,105 In progress 3 Istandoor W/C 17.5.07 187,971 11.6.07 167,087 355,058 In progress 4 Syed abad W/C 19.6.11 274,320 - - 274,320 In progress Total 1,461,608

Audit observed that the misappropriation occurred due to weak financial management, which resulted in loss to government.

When pointed out in April 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as neither the schemes were completed nor was the amount recovered.

Request for the convening of the DAC meeting was made on 3.05.2013 and 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery and action against the person (s) at fault. AP No 96 (2011-12)

1.2.2 Non Production of Record

1.2.2.1 Non production of record – Rs31.109 million

As per Section 14 (3) of Auditor General‟s Functions, Powers and Terms and Conditions of Service Ordinance, 2001, “any person or authority hindering the auditorial functions of the Auditor General regarding inspection of accounts shall be subject to disciplinary action under relevant Efficiency and Discipline Rules, applicable to such person.”

District Health Officer Chitral transferred Rs31,108,806 to Agha Khan Rural Support Program (AKRSP), Project for People's Health Initiative (PPHI) and Pakistan Red Crescent Society (PRCS) under Account-IV during the financial year 2012-13, but the record was not produced to verify the expenditure. Detail is give below:

Amount Particulars Period Transferred (Rs) Non salary AKRSP for 2 RHCs and 1THQ 2012-13 1,601,752 Salary AKRSP 2012-13 3,148,772 Non salary PPHI for BHUs 2012-13 13,416,576 Salary PPHI for BHUs 2012-13 12,766,295 Non salary PRCS for 1 BHUs and 2 Cds 2012-13 175,411 Total 31,108,806

Audit observed that non production of record occurred due to Violation of orders, which resulted in non verification of expenditure.

When pointed out in November 2013, Management stated that the departments concern would be approached for provision of record.

Reply was not satisfactory as no record was produced to audit.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends investigation of the matter and action against the person (s) at fault. AP No 20 (2012-13)

1.2.3 Irregularity/ Non compliance

1.2.3.1 Unnecessary retention of funds in Deposit-III –Rs13.665 million

According to Para 93 of GFR Vol: I, department incurring expenditure shall be responsible not only for seeing that allotment placed at his disposal in not exceeded but also that anticipated saving are notified, surrendered in time.

Scrutiny of the Deposit-III register of the Executive Engineer C&W Division Chitral revealed that an amount of Rs13,664,522 was laying unspent in 20 deposit works till 30.06.2013 and was unnecessarily retained. Detail is given at Annex-C.

Audit observed that the unauthorized retention occurred due to weak financial management, which resulted in violation of government rules.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as developmental funds were unnecessarily retained in 3rd deposit.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends that the unspent balances needs to be surrendered to the departments concerned. AP No 01(2012-13) (AC-I)

1.2.3.2 Unauthorized purchase of medicine beyond competency - Rs4.744 million

According to Director General Health Services Peshawar letter No.6537- 60/AR/A-1 dated 29-11-2007, the Director General Health Services being head of the department is competent to accord sanctions for the purchase of medicines.

As per Para No. 7 of the MCC Notification No. 4020-4200/ MCC dated 27-12-2012, payment shall not be released without submission of contract

6 execution certificate, duly signed by the MCC authority to the purchaser by the firm concerned.

District Health Officer Chitral purchased medicines amounting to Rs4,743,625 from various suppliers as per detail at annex-D during 2012-13, without obtaining sanction of the DG Health Services Peshawar. Moreover, contract agreements were not executed with the suppliers.

Audit observed that unauthorized purchase occurred due to negligence, which resulted in violation of government instructions.

When pointed out in November 2013, Management stated that sanction had been obtained from Deputy Commissioner Chitral.

Reply was not satisfactory as sanction of the DG Health Services was not obtained.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends investigation of the matter and action against the person (s) at fault. AP No 17 (2012-13)

1.2.3.3 Overpayment due to wrong calculation in MB –Rs2.342 million

According to Para 209 (d) of CPWA Code, it is incumbent upon the person, responsible for measurements in the measurement book (MB), to record the correct and actual figures.

Executive Engineer C&W Division Chitral during 2012-13 overpaid Rs2,342,531 to the contractor due to incorrect calculation in MB No. 3465 page 90-92. Record entry of 11,500 cubic feet was made instead of actual (11500/35.32) 325.59 M3 (work done of 11,500 cubic feet was taken as m3 without conversion. CSR rates are in M3 and measurement recorded in cubic

7 feet), thus excess quantity of 11,174.41 M3 was paid to the contractor. Detail is given below:

Quantity paid Required Qty Excess Qty Rate Amount (M³) (M³) (M³) (Rs/M³) (Rs) 11,500 325.59 11,174.41 182.29 2,036,983 Add: 15% 305,547 Total 2,342,531

Audit observed that the overpayment occurred due to weak financial management, which resulted in loss to government.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as excess quantity was paid.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery of the amount and action against the person (s) at fault. AP No 28 (2012-13) (AC-I)

1.2.3.4 Non supply of medicines - Rs2.326 million

As per Para No. 7 of the MCC Notification No. 4020-4200/ MCC dated 27-12-2012, the supply of the stock is required to be completed within 30 days or the period extended vide clause 07, after receipt of orders. The supplier may, however, avail 15 days extension with 2% penalty on the cost of non supplied items and after the expiry of said extension another 15 days can be availed but with total 5% penalty on the cost of non- supplied items. After the expiry of these extended periods, the order shall stand cancelled and the purchaser will have the right and authority to arrange alternate purchase at the risk and cost of the supplier.

MS DHQ Hospital Chitral paid Rs2,326,228 to various suppliers on account of purchase of medicines during the financial year 2012-13. The 8 medicines were not supplied till date of audit. Neither supply orders were cancelled nor penalty @ 5% amounting to Rs116,308 was imposed. Detail at annex-E.

Audit observed that non supply of medicines occurred due to negligence, which resulted in violation of rules.

When pointed out in October 2013, Management stated that reply would be submitted after scrutiny of record.

Reply was not satisfactory as no progress was shown till date.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends investigation for late supply and recovery of penalty and action against the person(s) at fault. AP No 07 (2012-13)

1.2.3.5 Overpayment due to allowing higher rates than approved– Rs3.696 million

According to approved PC-I the rate of Rs 208 per M³ is allowed for formation of embankment, item No (3-7-d) of CSR 2009 allows rate of Rs 103.18 per M³ for excavation in shingle gravel in foundation, item No (3-61-a) allows rate of Rs222.42 per M³ for formation of embankment in common material filling and item No (3-32) allows rate of Rs 88.68 per M³ for stone filling.

Executive Engineer C&W Division Chitral overpaid Rs3,695,621 to the contractors for various items due to allowing higher rates then approved. Detail is given at Annex-F:

Audit observed that the overpayment occurred due to ignoring the schedule rates, which resulted in loss to government.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as high rates were paid.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery and action against the person (s) at fault. AP No 05 & 06 (2012-13) (AC-I)

1.2.3.6 Non imposition of penalty for delay in completion of work in stipulated period - Rs1.31 million

According to Clause-2 of the conditions of the Contract Agreement, the contractors have to pay compensation @ 1 to 10% of the estimated cost per day for the delay in completion of work.

Executive Engineer C&W Division Chitral awarded a work “ Const: of food grain godown at Booni” to a contractor with an estimated cost of Rs12,254,400 having expenditure of Rs13,107,595 up to June, 2013. The work was required to be completed up to June 2012 but was not completed in stipulated period, therefore, penalty @ 10% amounting to Rs 1,310,759 (13,107,595 x 10%) was required to be imposed & recovered from the contractor but was not done.

Audit observed that the irregularity occurred due to weak financial management, which resulted in loss to government.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as work was not completed in stipulated period.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report. 10

Audit recommends recovery of the amount and action against the person(s) at fault. AP No 20 (2012-13) (AC-I)

1.2.4 Internal Control Weaknesses

1.2.4.1 Non-credit of lapsed deposit into government revenue – Rs35.013 million

According to Para 399(iii) of CPWA Code, Balances unclaimed for more than the three complete accounting years shall be credit to government as lapsed deposits.

Executive Engineer C&W Division Chitral did not credit lapsed securities amounting to Rs35,013,717 of 173 contractors during the financial year 2012-13, which were lying unclaimed for more than three years. Detail is given at Annex- G.

Audit observed that the irregularity occurred due to weak financial management, which resulted in violation of government rules.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as lapsed deposits were lying unclaimed for more than three years.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends that the unclaimed balances needs to be credited to government revenue. AP No 27 (2012-13) (AC-I)

1.2.4.2 Unauthorized payment out of lapsed deposits –Rs14.501 million

According to Para 395 of the CPWA Code, without special orders of the competent authority, no security deposit should be repaid or retransferred to the depositor, or otherwise disposed of, except in accordance with the terms of his agreement or bond. 12

Executive Engineer C&W Division Chitral paid Rs14,501,777 as refund of securities to 31 contractors during the financial year 2012-13. The securities were lapsed up to June 2008, which were required to be credited into government revenue instead of paying to the contractors. Detail at Annex-H.

Audit observed that the unauthorized payment occurred due to weak financial management, which resulted in violation of government rules.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as payment out of the lapsed deposits were made.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery and action against the person(s) at fault. AP No 25 (2012-13) (AC-I)

1.2.4.3 Lapse of funds due to non surrender of savings under the head AOM&R roads–Rs9.543 million

According to Para No.95 of GFR Vol-I, all anticipated saving should be immediately surrendered to the government before the close of the financial year.

Executive Engineer C&W Division Chitral incurred expenditure of Rs21,978,109 on account of AOM&R roads during the financial year 2012-13 against the final grant of Rs31,521,450, which resulted into savings of Rs 9,543,341which was not surrendered in June 2013 and was lapsed.

Audit observed that the irregularity occurred due to weak financial management, which resulted in violation of government rules.

When pointed out in November 2013, Management stated that detail reply would be submitted after verification of record.

Reply was not satisfactory as developmental funds were lapsed. 13

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends investigation of the matter and action against the person(s) at fault. AP No 34 (2012-13)

1.2.4.4 Overpayment on account of Conveyance Allowance –Rs5.704 million

According to Government of Pakistan Accountant General Khyber Pakhtunkhwa letter No Computer/HR-LAB/CIC/203 dated 4-8-2011, Para 2(iv) Conveyance allowance is not admissible to government servant who resides in the office premises.

District Health Officer and MS DHQ Hospital Chitral paid Rs3,808,800 and Rs1,895,280 respectively on account of Conveyance Allowance to 91 officers/officials during 2010-11,2011-12& 2012-13 for which they were not entitled as they were residing in Government accommodation inside the premises as per detail given at annex-I.

Audit observed that the overpayment of Conveyance allowance occurred due to violation of finance department instructions.

When pointed out in November 2013, Management stated that the matter would be investigated and necessary deductions would be made.

Reply was not satisfactory as no recovery shown to audit.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery of the amount and action against the person(s) at fault. AP No 03 &15 (2012-13)

1.2.4.5 Recovery of wrong payment– Rs2.509 million

According to CSR 2009 item No(16-10) the rate allowed for removal of Malbas was Rs 15.01/M³, Item No. (16-11-b) allowed the rate of Rs 285.17 per M³ for dense graded bitumen and the approved PC-I allowed the rate of Rs 103/M³ for excavation in foundation.

Executive Engineer C&W Division Chitral overpaid Rs480,535 to a contractor for various items by allowing higher rates than approved in CSR and PC-I in the work “Improvement /resurfacing of internal roads SH: Singoor road”. Technical Sanction was also not shown to audit. Detail is given below:

Paid Admissible Overpayment items Diff:(Rs) Qty(M³) rate (Rs) CSR rate(Rs) (Rs) Excavation in foundation 117.69 103 14.69 185.29 2,722 Excavation in foundation 133 103 30 111.07 3,332 Removal of malbas 187 15.01 171.99 976.84 168,007 dense graded bitumen 330 285.17 44.83 3884.74 174,153 348,214 Add: 15% cost factor 52,232 Add: 20% premium 80,089 Total 480,535

Moreover, an amount of Rs2,028,498 was overpaid to the contractor for excess quantity of Dense Graded Bitumen executed than actually required as per quantity of Tack coat. Detail is given below:

Required quantity Paid quantity of Quantity of Tack Difference Amount of dense graded dense graded Rate(Rs) coat executed(M²) (M²) (Rs) bitumen(M²) bitumen (M²) 4169.96 4169.96 8061.33 3891.37 377.74 1,469,926 Add: 15% cost factor 220,489 Add: 20% premium 338,083 Total 2,028,498

Audit observed that the irregularity occurred due to weak financial management, which resulted in loss to government.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as excess quantity and high rates were paid.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends recovery of the amount and action against the person(s) at fault. AP No 14 (2012-13)

1.2.4.6 Retention of government money due to uncleared cheques – Rs 2.032 million

According to Para 14.5.1.1 of Accounting Policies And Practice Manual (APPM), cash transactions relating to the Public Account shall be reconciled as part of the routine monthly bank reconciliation process, in accordance with APPM, „Bank Reconciliation‟.

Executive Engineer C&W Division Chitral did not clear PW cheques amounting to Rs2,032,072 as shown in CPWA form 26/51 “Schedule of Monthly Settlement with Treasury” for the month of June 2013. Cheques of the said amount were issued to contractors in June 2001 to 2012 but were not cashed/cleared up to 30-06-2013.

Audit observed that the irregularity occurred due to weak financial management, which resulted in violation of government rules.

When pointed out in November 2013, Management stated that detail reply would be submitted after consultation of record.

Reply was not satisfactory as cheques were not cleared.

Request for the convening of the DAC meeting was made on 19.11.2013. DAC meeting could not be convened till finalization of this report.

Audit recommends that outstanding cheques needs to be cancelled and the amount be credited to government revenue. AP No 09 (2012-13) (AC-I)

ANNEXURE Annex - A MFDAC Paras (Rs in million) S AP Department Gist of Para Amount No No. 1 EDO Non reporting of clinical efficacy of medicines 0.3942 Health 2 Unauthentic expenditure on account of medicines 0.2288 3 Non supply of medicines and non imposition of penalty 0.237 Unauthorized issuance of medicines without DTL report 0.394 4 Non recovery of HRA 0.471 5 Unauthorized local purchase of medicines 0.275 6 Misappropriation on account of double drawl 0.051 7 Loss due to non deduction of Income Tax and Sales Tax 0.237 8 Excess withdrawal on account of Home Firewood 0.139 Allowance 9 Loss due to ignoring the MCC rates 0.150 10 1 MS DHQ Irregular expenditure on account of purchase of Bedding 0.754 clothing 11 2 Non deposit of Ambulance receipts 0.115 12 4 Irregular purchase of medicines 0.13854 13 5 Loss to due to non deduction of stamp duty 0.0946 14 6 Loss to Government due to non-deduction of House Rent 0.168 Allowance 15 8 Non recovery of penalty 0.052 16 09 Non deduction of Income Tax 0.556 17 10 Over payment on account of Non Practicing Allowance 0.324 18 36 EDO (Edu) Irregular/Unauthentic expenditure on account of petty 0.12879 repair & CRC million 19 37 Irregular expenditure on account of purchase of furniture 3.127 20 38 Unauthentic/doubtful transfer of students stipend 0.3551 21 39 Non deduction of income tax/sales tax and stamp duty 0.373 22 40 Non Reconciliation 3.11. 23 C&W A/C-I Overpayment due to allowing high rates then approved 0.652 24 Overpayment due to allowing high rates then approved in 0.938 PC-I 25 Unjustified payment 0.537 26 Non accountal of drawl amount 0.9673 27 Unjustified payment on non schedule item without 0.224 approval 28 Overpayment due to allowing high rates then approved in 0.355 BOQ

29 Unauthorized payment on banned item 0.698 30 Overpayment due to allowing high rates for earth filling 0.1932 behind retaining wall 31 Overpayment due to allowing high rates for sand filling 0.164 32 Unauthorized purchase 0.786 33 Overpayment due to allowing high rate then approved 0.5435 34 Overpayment due to allowing high rates 0.1695 35 Overpayment due to allowing high rates 0.2743 36 Recovery on account of cost of tender form fee 0.281 37 Variation in receipts between reconciled receipt statement 0.1139 and PIT 38 Overpayment by to allowing additional cost factor on 0.1266 analyzed/non-schedule rates 39 Excess payment on electric cable than actual requirement 0.124 40 Irregular drawl from II deposits without pre-audit 0.227 41 C&W A/C- 0.5462 Irregular expenditure on AOM&R building IV 42 Unauthorized expenditure on AOM&R (buildings) beyond 0.1545 competency 43 Unauthorized expenditure without agreement & TS 0.13277 44 Excess expenditure than tender amount 0.277 45 Misappropriation on account of double drawl 0.333 46 Unauthorized expenditure on repair of buildings other than 0.1144 the District Govt. 47 Doubtful expenditure 0.334 48 Overpayment due to allowing high rates then approved in 0.058 BOQ 49 Misappropriation on account of work not done 0.141 50 Unauthorized expenditure on account of liabilities of 0.3948 AOM&R Roads Total 21.733

Annex-B EDO wise Expenditure Summary District Chitral 2012-13

Expenditure S.No Descriptions Salary Non-Salary Total Percentage (Rs) (Rs) (Rs) District Coordination 1 Officer (DCO) 29,928,651 39,816,552 69,745,203 2.94% Executive District Officer 2 (Agriculture) 55,019,823 6,328,516 61,348,339 2.58% Executive District Officer (Community 3 Development) 45,489,929 9,969,364 55,459,293 2.34% Executive District Officer 4 (Education) 1,435,544,554 57,440,935 1,492,985,489 62.87% Executive District Officer 5 (Finance and Planning) 12,045,544 2,841,477 14,887,021 0.63% Executive District Officer 6 (Health) 298,010,114 74,858,679 372,868,793 15.70% Executive District Officer 7 (Revenue) 28,756,762 2,249,758 31,006,520 1.31% Executive District Officer 8 (Works and Services) 154,925,904 41,340,288 196,266,192 8.26% Total Current Expenditure 2,059,721,281 234,845,569 2,294,566,850 Percentage 86.74 9.89 96.63 96.63% Developmental Expenditure 80,103,204 3.373% Grand Total 2,374,670,054 100.00

Annex-C Detail of retention in 3rd deposit Item Balance as on Transaction date Work name No. 30.06.2013 25/25 00.09.1990 GGPS Yarkhun 64,469 26/26 00.10.1995 Const. of 45 CMS Ph"III 22,200 27/27 00.10.1995 installation of connection in education 7,621 28/28 00.11.1996 Booni mastuj road flood demages 8,337,479 31/33 00.06.2003 G/Chashma road 58,464 33/35 00.06.2003 GHS Rashun 28,581 35/38 00.03.2005 Play ground khandan lasht 161,426 38/42 00.05.2006 Chive bridge 31,096 39/43 00.05.2006 Graram chashma road 854,121 47/52 00.06.2007 Mastuj shandur road 53,858 49/55 00.07.2007 RITE drosh 556,857 50/57 00.11.2007 J/Bridge goch shishikoh 32,285 50/57 00.11.2007 Bakar abad road 536,772 51/59 00.12.2007 Gowgole road 80,574 52/61 00.02.2008 football gorund at mroai 24,758 54/63 00.06.2008 GPS Balin 32,408 57/66 00.09.2008 Bridge at gole deh 86,013 58/67 00.09.2008 Land compensation mastuj shandur road 2,695,003 64/64 00.03.2010 Dress shop at bamburate 360 65 00.05.2011 TMA Complex booni 177 Total 13,664,522

Annex-D

Detail of Purchase of Medicines without Sanction and Contract execution Ref Cheque Amount Deptt Name of Firm Name of Items Date No. no. (Rs) 1 Inj ARV Admn Novartice pharma 28.06.2013 473920 199,793 2 RHC GlaxoSmithKline Polyfax skin ointment 23.0`1.2013 429021 39,000 2 RHC Medipak Salfacitamite 23.0`1.2013 429021 10,200 2 RHC GlaxoSmithKline Augmentine 23.0`1.2013 429021 24,865 2 RHC GlaxoSmithKline Tab septran 23.0`1.2013 429021 30,699 2 RHC Zafa Zoxicilline 23.0`1.2013 429021 21,960 2 RHC Zafa Zampiclx 23.0`1.2013 429021 13,410 2 RHC Zafa Tab H2 REC 23.0`1.2013 429021 8,759 2 RHC Stanley Cap ferussulphate 23.0`1.2013 429021 40,000 2 RHC GlaxoSmithKline Augmentine 23.0`1.2013 429021 11,112 3 RHC Reko pharma Cap Dekomycine 14.02.2013 429389 17,250 3 RHC Reko pharma Rekozol 14.02.2013 429389 13,480 4 RHC Rehmn ranbow Madicated dressing 07.02.2013 429189 25,200 4 RHC Rehman ranbow Pop bandage 07.02.2013 429189 35,400 4 RHC Rehman ranbow Gauze cloth 07.02.2013 429189 68,400 Susp azithromycine 5 RHC Caylex phar 250 28.06.2013 473887 28,500 Susp azithromycine 5 RHC Caylex phar 500 28.06.2013 473887 78,900 5 RHC Caylex phar Tab montelukast 28.06.2013 473887 27,480 SARU 6 RHC international Black silk 28.06.2013 473810 12,550 6 RHC GlaxoSmithKline Syp Augmentine 28.06.2013 473810 19,040 6 RHC GlaxoSmithKline Syp amoxil 28.06.2013 473810 17,850 6 RHC Zafa Inj amoxiciline 28.06.2013 473810 21,600 6 RHC Zafa inj amoxiciline 500 28.06.2013 473810 28,640 6 RHC Paktex Gauze cloth 28.06.2013 473810 99,510 7 RHC Maga pharama Daisy tab 28.06.2013 473891 13,500 7 RHC Maga pharama Megagenac tab 28.06.2013 473891 27,000 7 RHC Maga pharama Curofam 28.06.2013 473891 63,000 7 RHC Maga pharama Megadip 28.06.2013 473891 36,000 8 MCH Medipak Sulphacetamid 23.01.2013 428987 17,000 8 MCH Stanley Ferussulphate 23.01.2013 428987 3,200 8 MCH GlaxoSmithKline Augmentine 23.01.2013 428987 6,694 9 MCH Reko pharma Rekozol 18.02.2013 429442 33,869 Wahid enterprise 10 THQ pesh Oxygen 23.01.2013 428982 9,380 11 THQ GlaxoSmithKline Polyfax skin oin 20 23.01.2013 429022 30,303 11 THQ GlaxoSmithKline Polyfax skin oin 20 23.01.2013 429022 8,697 11 THQ GlaxoSmithKline Polyfax skin oin 6 23.01.2013 429022 17,000 11 THQ Medipak Sulphacetamid 23.01.2013 429022 10,200 11 THQ GlaxoSmithKline Cap Amoxil 23.01.2013 429022 39,576 11 THQ GlaxoSmithKline Seftran tab 23.01.2013 429022 30,699 11 THQ GlaxoSmithKline Augmentine syp 23.01.2013 429022 24,865 11 THQ Frontier dextrose Sterifluid 1000ml 23.01.2013 429022 91,400 21

11 THQ Frontier dextrose Sterifluid 100ml 23.01.2013 429022 31,250 11 THQ Frontier dextrose Sterilyte 500ml 23.01.2013 429022 27,950 11 THQ Stanley Cap ferussulphate 23.01.2013 429022 80,000 11 THQ Stanley Cap ferussulphate + 23.01.2013 429022 31,500 11 THQ GSK Augmentine tab 23.01.2013 429022 22,269 12 THQ Nabi qasim Acetylstrup 14.02.2013 429392 19,800 Susp Azithromycine 13 THQ Caylex phar 250 mg 26.06.2013 432480 28,500 Susp Azithromycine 13 THQ Caylex phar 500 mg 26.06.2013 432480 78,900 Tab montelukast 13 THQ Caylex phar sodium 26.06.2013 432480 27,480 14 THQ Rehman ranbow Medicated dressing 14.02.2013 429373 25,200 14 THQ Rehman ranbow Pop bandage 14.02.2013 429373 35,400 14 THQ Rehman ranbow Gauze cloth 14.02.2013 429373 68,400 15 CDs GlaxoSmithKline Polyfax eye ointment 23.01.2013 429023 17,000 Polyfax eye ointment 15 CDs GlaxoSmithKline 20gm 23.01.2013 429023 39,000 15 CDs GlaxoSmithKline Sulphacetamid 23.01.2013 429023 34,000 15 CDs GlaxoSmithKline Amoxil 250 23.01.2013 429023 39,578 15 CDs GlaxoSmithKline Septran 100g 23.01.2013 429023 30,699 15 CDs GlaxoSmithKline Augmentine 60 ml 23.01.2013 429023 41,441 15 CDs GlaxoSmithKline Sterifluid 1000 ml 23.01.2013 429023 91,400 15 CDs GlaxoSmithKline Sterifluid 100 ml 23.01.2013 429023 31,250 15 CDs GlaxoSmithKline Sterilyte 500ml 23.01.2013 429023 27,950 15 CDs Stanley Syp ferussulphate 23.01.2013 429023 17,500 15 CDs GlaxoSmithKline Augmentine 375 mg 23.01.2013 429023 70,558 16 CDs Reko pharma Dekomycine 14.02.2013 429388 17,250 16 CDs Reko pharma Rekozol 14.02.2013 429388 67,400 17 CDs Rehman ranbow Medicated dressing 07.02.2013 429201 25,200 17 CDs Rehman ranbow Pop bandage 07.02.2013 429201 35,400 17 CDs Rehman ranbow Gauze cloth 07.02.2013 429201 68,400 18 CDs Mega pharma Megafenac tab 20.02.2013 429478 59,400 18 CDs Nabi qasim Acefyl syp 20.02.2013 429478 48,000 Sadiq public 19 CDs chemical Strycnine 25.02.2013 429526 15,500 Susp azithromycine 20 CDs Caylex phar 250 mg 28.06.2013 473819 57,000 Susp azithromycine 20 CDs Caylex phar 500 mg 28.06.2013 473819 67,551 Sadiq public 20 CDs chemical Strycnine 28.06.2013 473819 20,400 SARU 21 CDs international Black silk 28.06.2013 473809 25,100 21 CDs Elite pharma inj lignocaine 28.06.2013 473809 3,820 21 CDs Elite pharma inj metoclopramid 28.06.2013 473809 19,925 21 CDs Zafa inj amoxicillin 250 mg 28.06.2013 473809 32,400 21 CDs Zafa inj amoxicillin 500 mg 28.06.2013 473809 42,960 inj hydrocartisone 250 21 CDs Zafa mg 28.06.2013 473809 38,370 21 CDs Broker pharma Pyodine 28.06.2013 473809 59,670 21 CDs Rehman ranbow Absorbent cotton wool 28.06.2013 473809 69,690 22

21 CDs Paktex Gauze cloth 28.06.2013 473809 29,853 21 CDs Paktex Crepe bandage 28.06.2013 473809 3,333 21 THQ Astellas pharma Cephradine 29.06.2013 474144 135,150 21 THQ Astellas pharma Inj cefotaxim 250 29.06.2013 474144 15,070 21 THQ Astellas pharma Inj cefotaxim 500 29.06.2013 474144 21,970 21 THQ Elite pharma inj lignocaine 29.06.2013 474144 7,640 21 THQ Elite pharma inj metoclopramid 29.06.2013 474144 12,925 21 THQ Reckitt Dettol solution 29.06.2013 474144 26,965 21 THQ Paktex Gauze cloth 29.06.2013 474144 99,510 21 THQ Paktex Crepe bandage 29.06.2013 474144 3,333 21 THQ GSK Syp Augmentine 29.06.2013 474144 19,040 21 THQ GSK Syp amoxil 29.06.2013 474144 17,850 21 Disp Caylex phar Susp: Azithromycine 28.6.2013 473809 57,000 21 Disp Caylex phar Susp: Azithromycine 28.6.2013 473809 67,552 Sadiq public 21 Disp chemical Strycnine 28.6.2013 473809 20,400 Tab mefnamic acid 22 MCH Jawa 500 27.06.2013 473739 30,500 22 MCH Jawa syp paracetamole 27.06.2013 473739 9,900 22 MCH Jawa Cap Omeprazole 20mg 27.06.2013 473739 18,500 22 MCH Jawa Tab atenolol 100 mg 27.06.2013 473739 10,000 23 RHC Nenza pharma Masgel susp 27.06.2013 473702 30,206 23 RHC Nenza pharma Nendol tab 27.06.2013 473702 27,389 23 RHC Jawa Tab atenolol 100 mg 27.06.2013 473702 10,000 Syp metronidazole 200 23 RHC Jawa mg 27.06.2013 473702 10,384 Tab mefnamic acid 24 CDs Jawa 500 27.06.2013 473703 30,500 24 CDs Jawa syp paracetamole 27.06.2013 473703 9,900 24 CDs Jawa syp iuprofen 27.06.2013 473703 11,480 24 CDs Jawa Cap Omeprazole 20mg 27.06.2013 473703 37,000 24 CDs Jawa Syp aminophyline 27.06.2013 473703 5,990 Syp metronidazole 200 24 CDs Jawa mg 27.06.2013 473703 12,980 24 CDs Jawa Tab atenolol 100 mg 27.06.2013 473703 25,000 24 CDs Munawar pharma Tab Chlorophenrmine 27.06.2013 473703 14,900 24 CDs Munawar pharma Tab Dexamethsone 27.06.2013 473703 25,000 24 CDs Munawar pharma Inj deminhydrinate 27.06.2013 473703 11,950 National institute 24 CDs of H ARV Viccine 27.06.2013 473703 6,000 25 THQ Nenza pharma Masgel susp 27.06.2013 473699 15,490 25 THQ Nenza pharma Nendol tab 27.06.2013 473699 44,900 25 THQ Munawar pharma Tab chlorophenrmine 27.06.2013 473699 14,900 25 THQ Munawar pharma Tab dexamethsone 27.06.2013 473699 25,000 25 THQ Munawar pharma Inj deminhydrinate 27.06.2013 473699 11,950 26 CDs Mega pharma Daisy tab 28.06.2013 473890 10,665 26 CDs Mega pharma Daisy tab 28.06.2013 473890 2,025 26 CDs Mega pharma Daisy tabs 10mg 28.06.2013 473890 810 26 CDs Mega pharma Megadip tabs 10mg 28.06.2013 473890 36,000 26 CDs Mega pharma Megafenac tabs 50 mg 28.06.2013 473890 25,785 26 CDs Mega pharma Megafenac tabs 50 mg 28.06.2013 473890 1,215 26 CDs Mega pharma Curofam 40 mg 28.06.2013 473890 58,275 23

26 CDs Mega pharma Curofam 40 mg 28.06.2013 473890 2,835 26 CDs Mega pharma Curofam 40 mg 28.06.2013 473890 1,890 26 CDs FYNK Inj diclofenac sodium 28.06.2013 473890 65,842 27 THQ FYNK Inj diclofenac sodium 28.06.2013 473892 74,000 28 THQ Nabi qasim Acefyl syrup 30.08.2012 330024 19,800 28 THQ Zafa Syp amodiaquine 30.08.2012 330024 5,525 28 THQ Zafa Xynosine drop 30.08.2012 330024 5,400 28 THQ Alshifa medicos LP 30.08.2012 330024 10,850 Sadiq public 29 CDs chemical Strycnine 29.08.2012 330014 25,500 30 CDs Nabi qasim Acefyl syrup 27.09.2012 330305 47,520 Heal Syp metronidazole 200 30 CDs pharmacuticals mg 27.09.2012 330305 25,000 30 CDs Saydon pharma Inj SG 20mg 27.09.2012 330305 26,000 31 RHC Chitral marketing Local Purchase 18.10.2012 330573 38,000 32 RHC Chitral marketing Local Purchase 07.11.2012 330807 9,000 Alam medicos 33 THQ chitral Local Purchase 27.12.2012 428576 18,216 Trade and project 34 RHC swat Local Purchase 02.05.2013 430492 49,030 Trade and project 35 THQ swat Local Purchase 02.05.2013 430491 49,030 Trade and project 36 RHC swat Local Purchase 27.05.2013 431191 50,780 Trade and project 37 THQ swat Local Purchase 24.05.2013 431092 50,780 Total 4,743,625

Annex-E

Detail of non supply of medicines

Penalty Rate Amount Name of Firm Name of medicine QTY @5% (Rs) (Rs) (Rs) Brooks Phrama Inj Acuron 5*5 ml 1000 112 112,000 5,600 Brook Phrama Pyodin solution 450ml 1000 198.90 198,900 9,945 Brook Phrama Pyodin serub 450ml 500 250.75 125,375 6,268 Global Phrama Cap: Amoxicilline 50000 2.84 142,000 7,100 500mg Global Phrama Cap: Tranexaminic 100000 0.59 59,000 2,950 Acid Global Phrama Tab: Dig0xin 250 mg 5000 1.19 5,950 297 Global Phrama Tab:Ibuprofen 100000 0.74 74,000 3,700 Global Phrama Inj:Nalbuphine 2000amps 40/amp 80,000 4,000 Global Phrama Tab:Meloclopramide 100000 0.25 2,500 125 HCL M/s Siza Life saving Drug 17100 123,590 6,179 international amp M/s Jawa Phramame Medicine 400,920 20,046 M/s Shahbaz Phrama Dextrose salin 2000 47.1 94,200 4,710 M/s Shahbaz Phrama Dextrose 5% 2000 45.5 91,000 4,550 M/s Shahbaz Phrama Mannitol 20% 500 87 43,950 2,197 M/s Frontier Life saving Drugs 193,855 9,692 Dextrose Tahir scientific X-Ray filam (12*15) 50 8200 410,000 20,500 supplier Tahir scientific X-Ray filam (10*12) 22 5500 121,000 6,050 supplier Tahir scientific X-Ray filam (8*10) 12 3999 47,988 2,399 supplier Total 2,326,228 116,308

Annex- F Detail of overpayment Name of Work: Construction of 200 KM road SH: Garam Chashma road KM-2 Admissible Paid rate Overpayment Items CSR Diff:(Rs) Qty(M³) (Rs/M3) (Rs) rate(Rs/M3) Filling formation 404 208 196 2491.50 488,334 Stone filling 1246 88.68 1157.32 380.52 440,383 Common material filling 820 222.42 597.58 1274.06 761,352 Excavation in shingle 133 103 30 1569.50 47,085 gravel 1,737,185 Add: 15% cost factor 260,577 Total 1,997,762 Name of work: Repair & Reh: of 200 KM roads in PF 90 Chitral Excavation in foundation 187.20 103.18 84 15254.10 1,281,344 in shingle gravel Excavation in foundation 187.20 103.18 84 1528.87 128,425 in shingle gravel Formation of 240 222.42 17.58 2601 45,725 embankment Formation of 240 222.42 17.58 1189.12 20,905 embankment 1,476,399 Add: 15% cost factor 221,459 Total 1,697,859 Grand Total 3,695,621

Annex-G Detail of lapse deposit Transaction Amount (Rs) Item No. Name of contractor Work name date 30.06.2013 0 5/1988 Saeedur Rehman C/M of Sore Laspur 200 0 6/1999 Nasiruddin Parwak Mastuj Road KM1x2 4,659 0 8/1999 Khalid Khan CMS Dargirdini Drosh 16,434 0 3/2003 Mir Azam Govt: Centenial School Chitral 21,060 0 5/2003 H.Said Azim Upgradation of DHQ Hospital Chitral. 257,753 0 12/2003 M.Saeedud Din Upgradation of DHQ Hospital Chitral 40,938 20/21 12/2003 Amanullah Upgradation of DHQ Hospital 257,753 22/25 12/2003 Taimoor Shah Upgradation of DHQ Hospital 736 26/29 12/2003 Riazuddin Upgradation of DHQ Hospital 10,319 29/38 12/2003 Gul Wali Khan Upgradation of GPS Harchin/GGPS 32,286 30/40 12/2003 Mohammad Nadir AOM&R to all Govt: Building Chitral. 11,741 31/41 3/2004 Sultanuddin GPS Sore Laspur (Main Building) 143 32/42 3/2004 Saeedur Rehman GPS Sore Laspur W/S & G/L 18,412 33/44 3/2004 Ghulamullah Jeepable Bridge Kushum (P.I) 5,409 AOM&R to all Govt: Machinery 34/45 3/2004 Moghal Baz Chitral. 4,638 35/46 3/2004 Haji Mohd Khan Construction of G.G College at Booni 76,452 W/Improvement of Beori road KM 36/49 5/2004 Mohammd Dawood NO.3 120,254 37/53 5/2004 Wazir Ahmad & Co Construction of W/Shop GHS Reshun 80,186 W/Improvement of Beori road KM 38/50 5/2004 Mohd Dawood NO.4 173,793 W/Improvement of Rech road KM 40/56 6/2004 Sher Hakim NO.2 38,420 W/Improvement of Rech road KM 41/57 6/2004 Mohammad Javed NO.3 77,500 W/Improvement of Rech road KM 42/58 6/2004 Ashar Jalal NO.4 16,579 W/Improvement of Rech road KM 43/60 6/2004 Baberuddin NO.5 38,046 W/Improvement of Rech road KM 44/60 6/2004 Rahmat Murad Baig NO.6 17,032 Upgradation of BHU Drassun into 48/66 6/2005 Mashfirat Shah RHC (Elec) 50,923 Upgradation ofGGPS Nishko (M 50/68 6/2005 Sher Nadir Building) 10,324 Construction of GGPS Birga Bala 51/72 6/2005 Abdul Subur (M.Building) 20,639 Provision of B/F of GGPS Kosht 52/73 6/2005 Ghulamullah G.Latrine 13,920 Provision of B/F of GPS Shabronz 54/75 6/2005 Sarwarul Mulk G.Latrine 16,976 Provision of Bund Charun 2nd rang 56/79 6/2005 Rahmat Ayaz road 52,186 27

Provision of Bund Charun 2nd rang 66/107 6/2005 Lal Mohammad road 36,200 67/110 6/2005 Saidul Ghafar Upgradation of DHQ Hospital Chitral 42,380 68/113 6/2005 Yaqoob Khan S/R to G.College Booni (Elec) 46,797 69/114 6/2005 Yaqoob Khan Upgradation of GMS Madak (M.B) 50,250 70/116 6/2005 Nasir Azad Upgradation of GGMS Broze (M.B) 38,930 71/117 6/2005 Nasir Azad Upgradation of GGMS Broze W/S 42,789 74/125 6/2005 Allauddin Upgradation of GGPS Nishko SH: W/S 45,135 Provision of B/F of GPS Yarkhun 75/132 3/2006 Mohammad Javed G.Latrine 26,592 76/134 3/2006 Mohammd Rahim Shah Addl: Class room (Elec) 4,292 77/135 3/2006 Sardar Wali Provision of B/F of BPS Sonoghar 255,858 Upgradation of GMS to H/L Shagram 79/138 6/2006 Mohammd Rahim Shah (Elec) 90,527 Establishment of M/Form Chitral 81/141 6/2006 Tilla Mohammad (Elec) 6,700 Establishment of M/Form Chitral 82/142 6/2006 Sibghatullah (Elec) 25,195 85/145 8/2006 Taj Mohammad Construction of GPS Chitral (W/S) 8,229 Construciton of GGMS Potoniandeh 86/147 8/2006 H.Mehboob Drosh 23,698 Construction of GGMS Khot & GGMS 88/153 8/2006 H.Mehboob Shotkhar 15,102 B/T of Khandan Warijun road KM 90/155 8/2006 Habibur Rehman No.1 307,765 97/170 8/2006 Sher Wahid Repair of Kawti Road 20,000 102/179 9/2006 Ghulamullah AOM&R to all Buildings Chitral 22,228 Construciton of Foot Ball Ground 110/186 7/2006 H.Rehmat Wali Moroi 7,054 111/187 7/2006 Mir Azam Khan Construciton of bridge Terich 33,179 112/188 7/2006 Mohammad Ayub Construciton of Ujnoo road 1,818,695 Construction of C/Office & GPS 117/199 7/2006 M.Rahim Shah Balach 15,558 125/122 " Mir Gulab Khan Cosntruction of Shiluto Kazar road 3,245 130/228 12/2006 Nasir Ahmad Establishment of Poly technic (P/W) 28,765 132/231 12/2006 M.Zahir Shah Improvement of Play Ground Booni 23,726 134/237 12/2006 Niamatur rEhman Renovation of Chitral Museum(C/W) 19,911 137/240 12/2006 Javad Akhtar Renovation of Chitral Museum (Store) 50,081 142/248 2/2007 Sultanuddin R/R of RHC Mastuj 29,500 143/250 2/2007 H.Abdul Baqi R/R of BHU Kosht W/Supply 6,554 146/256 2/2007 Ubaidullah R/R of BHU Kosht Elec 23,143 147/258 2/2007 Sajjad Ahmad R/R of BHU Broze Elec 11,823 148/264 2/2007 Javad Iqbal Bomborate Museum (M.Building) 63,177 149/265 2/2007 Mohammad Sharif Bomborate Museum 35,990 28

150/266 20/2007 Ijlaluddin Bumborate Museum Elec: 55,865 151/267 20/2007 Ziur Rehman Bumborate Museum W/S 53,674 152/268 20/2007 Abdur Razaq Bomborate Museum Elec 57,036 155/271 20/2007 Shapir Wali Reconstruction of CD Boroghal 21,369 156/272 20/2007 Saidul Ghaffar Repair of RHC Mastuj Elec 16,895 157/275 20/2007 Mohammad Khan R/R Jashtan Khana Birir 14,772 162/286 4/2007 Israr Ahmad Construction of GPS Boroghal 55,916 163/287 4/2007 Sharif Mohammad 8 Nos C/Rooms in GPS Shot Melp 51,990 166/297 4/2007 Abdul Hakim Reconstruction of FD Zondragram road 4,005 167/298 4/2007 Anwar Wali Construction of Jeepable Bridge Broze 49,919 168/301 4/2007 Shakirullah B/F in GGPSBirgadan etc 15,719 169/302 4/2007 Ubaidullah B/F in GGPS Ursoon/GPS Ursoon W/S 12,619 170/303 4/2007 H.Mehboob B/F in GPS Potoniandeh 50,216 171/304 4/2007 Faizur Rehman B/F in GGPS Lone GPS Muzhen 2,547 175/310 4/2007 Mehboob Dastagir B/F in Zang Lasht 53,876 179/314 4/2007 Shafiqur Rehman B/F in GPS Miragram GGPS Awi W/S 13,296 180/315 4/2007 Sardar Ahmad B/F in GPS Brok GPS Gaht 18,150 181/316 4/2007 Ziaur Rehman GPS Sarghuz GPS Chuinj GPS Khuzh 19,950 182/318 4/2007 Musa Wali Khan B/F GPS Power GPS Kosht 31,936 B/F in GPS Parwak Payeen BPS 183/319 4/2007 Jamiluddin Parwak Bala 6,061 185/326 4/2007 Sarwarul Mulk B/F in GPS Broze GGPS Shoghre 31,196 186/327 4/2007 Commander Khan B/F in GPS Rumboor W/S 1,140 187/328 4/2007 Mohammad Ibrahim B/F in GPS Bomborate Payeen 4,050 189/340 4/2007 Aminur Rehman B/F in GPS Sweer GPS Wardap 13,950 190/345 4/2007 Aminul Haq Addl C/Room GGPS Shahnigar 1,142 192/348 4/2007 Shafiqur Rehman Cosntruction of Addl C/R Elec: 27,584 193/350 4/2007 Sher Ali Shah Construction of Addl C/R GMS Seen 26,171 195/355 4/2007 Mir Sahib Baig Restoration of C/DISP Yarkhun Lasht 27,470 196/357 4/2007 Nasirullah B/F in Miragram G.Latrine 109,570 Upgradation of P.S to M/S GGPS 197/358 5/2007 Tilla Mohammad Hinjil Elec 15,914 Construction of 2 Nos Mosque School 198/361 5/2007 Hayat Khan Elec 14,873 Construction of 2 Nos M/S To H/L 199/362 5/2007 Sibghatullah Elec 2,255 200/363 5/2007 Zainullah Esttab: of Pry: School Elec: 44,895 2001/364 5/2007 Zainullah Construction of 8 Nos C/Room Elec 40,709 202/365 5/2007 Tilla Mohammad Doctor Colony Elec: 330,057 29

203/366 5/2007 Fazlur Rehman. Construction of P/Q Brok Laspur 24,854 Construction of D.College Booni 204/369 6/2007 M.Zahir Shah (B.W) 222,295 Construciton of Post Graduate GDC 205/371 6/2007 Sardraz Khan Booni Elec: 38,881 Construction of 100 Student Hostel 206/372 6/2007 Mohammad Dawood Booni 107,052 Construction of 100 Student Hostel 207/373 6/2007 Ahmad Karim Booni Elec 79,186 208/374 6/2007 Qazafi & Co Construction of 100 Student Hostel 200,201 Construction of 100 Student Hostel 209/375 6/2007 Bashir Ahmad Booni Elec 81,615 210/376 6/2007 Qazafi & Co S/R Road damaged Booni Torkhow 14,467 211/377 6/2007 H.Mohammad Khan C/R in Road Booni Rain 22,733 213/381 6/2007 H.Mohammad Khan S/Repair of Trucc RCC Bridge Mastuj 1,652,971 216/385 6/2007 Amirullah AOM&R to all Road 2009-10 27,344 221/404 6/2007 Hisamud Din 100 Student Hostel GDC Booni 36,285 219/394 9/2007 Gul zar NERP Project Package No. 3 64,000 227/413 11/2007 H.Mohammad Khan Rep/Reh: of damaged Brep Bridge 1,383,040 228/414 11/2007 H.Mohammad Khan Rep/Reh: of P.Bud Shishi Koh 597,573 Upgradation of DHQ Hospital 229/415 11/2007 M/S Qazafi & Co KU/CCU 20,017 231/424 11/2007 Shafiqur Rehman Upgradation of DHQ Hospital Chitral 148,510 232/425 11/2007 Sultanuddin Upgradation of DHQ Hospital Chitral 22,361 235/428 11/2007 Obaidullah Primary Institute Teacher Edu Drosh 25,902 236/429 11/2007 Haji Mehboob Primary Institute Teacher Edu Drosh 41,072 Regional Teacher Edu Drosh Old 240/435 1/2008 Saeedud Din Bridge 36,534 241/437 1/2008 Rashid Zaffar B/T of Khandan Warijun Road 633,012 242/438 1/2008 Qazafi & Co Booni Shahgram road 1.5 KM 2,394,598 B/T of Achingole Bakarabad road KM 244/446 1/2008 Sher Wazir Shah 0.5 12,594 246/448 2/2008 Israr Ahmad B/T of Domoon Broze Road 0.5 KM 66,547 247/449 2/2008 Nisar Dastagir B/T of Jinjirate Road 1 KM 1,409,490 Regn: Str: Teacher Edu Drosh O/Head 248/450 2/2008 Rehmat Elahi tank 46,941 252/459 4/2008 M/S Dir Shiringle B/T Sweer road 2 KM 2,956,010 253/460 4/2008 Haji Shahabuddin Construction of Shishi Koh road 1 KM 2,361,549 254/461 4/2008 Habibur Rehman Cosntruction of Shishi Koh road 2 KM 1,910,281 255/462 4/2008 Rehmat Wali Shah Cosntruction of Shishi Koh road 3 KM 2,111,099 256/463 12/2003 H.Mir Gulzar Improvement of DHQ Hospital Chitral 17,330 257/464 10/2003 Habibur Rehman Improvement of RHQ Hospital Chitral 12,005 258/465 12/2007 Mohammad Naeem Improvement of DHQ Hospital Chitral 1,590 30

259/466 12/2007 Sultanuddin Improvement of DHQ Hospital Chitral 6,900 Reconstruction of Chitral G/Chashma 260/467 6/2008 Mohammad Naeem road 27,026 Reconstruction of Sayurch Public 261/468 6/2008 Abdul Qudus School 19,215 262/471 6/2008 H.Shahabuddin Restoration of Internal Road 50,195 264/474 6/2008 Hazratuddin Restoration of Arkari Road. 11,322 268/480 6/2008 Mohammad Naeem Restn: of Valley road G/Chashma 45,228 269/483 6/2008 M/S Dir Shiringle Restn: of Bridge Arrandu 64,730 270/486 6/2008 Tajud Din Restn: of Kessudeh road. 8,000 272/489 6/2008 Sabir Mohammad Restn: of Goldeh Broze Road 15,779 274/492 6/2008 Moghal Baz Restn: of Jughoor Kuru road. 4,150 275/493 6/2008 M/S Dir Shiringle Restn: of Dudishi aspar road 48,655 276/497 6/2008 H.Mohammad Aziz Muzhdeh Beaori Payeen & Balla road 18,694 277/499 6/2008 Amirullah S/R upgradation of Hall Arrandu 65,841 279/504 6/2008 Mir Nizamud Din Restn: of Khot road 33,088 280/505 6/2008 Mir Gulzar Restn: of Rech road 19,919 283/508 6/2008 Ghulamullah Resurfacing of Booni Bridge to Bazar 26,360 284/509 6/2008 Rahmat Nawaz Restn: of Shahgram Bridge 9,698 287/515 6/2008 Hayatur Rehman Rep: of Nishko Bridge 32,288 288/312 6/2008 Rehmat Ayaz Restn: of Valley road U.C Owir 135,689 289/517 6/2008 Sher Bahader Restn: of Rech Bridge 10,000 302/525 6/2008 Mir Azam Restn: of Charun Zondrangram Road 12,097 304/531 6/2008 Fazal Soft Ware Shahi Plaza Chitral 3,400 307/536 6/2008 Abdul Baqi AOM&R to Govt: Road Chitral 46,142 308/537 6/2008 H.Mohammad Khan AOM&R to Govt: Road Booni 130,398 309/539 6/2008 Hisamuddin AOM&R to Govt: Road Drosh 59,143 310/166 12/2003 Meraj Hussain Upgradation of DHQ Hospital Chitral 71,095 313/541 11/2008 Sher Hussain S/Repair to GPS Kosht 20,050 315/546 11/2008 Ziaur Rehman Rep:of Jeepable bridge Mogh Balla 1,600 316/547 11/2008 Abdul Majeed C/R Road damaged due to road. 96,944 317/548 11/2008 Akhtar Hussain Trout Fisheries Main Building 5,600 318/549 11/2008 Shujaul Mulk Construction of Trout Fisheries C/W 60,738 Constn: of Trout Fisheries Recovery 319/550 11/2008 Sarwarud Din Groun store 94,381 320/550 11/2008 Khosh Azam Costn: of Trout Fisheries H.Way 92,962 321/552 11/2008 Fakhrun Nabi Cnstn: of Trout Fisheries W/S 30,684 322/553 11/2008 Sikandar Hayat Cnstn: of Trout Fisheries Outlet Drain 12,225 31

Cnstn: of Trout Fisheries Mitchery 323/554 11/2008 Aftab Nabi Room 79,897 324/555 11/2008 Mohammad Khan C/R due to snow fall suspension bridge 201,335 B/T of G.Chashma road KM 41-50 to 325/564 5/2009 Nasir Ahmad 24-5 KM 5,273,974 B/T of G/Chashma road KM 42-50 to 326/565 5/2009 Noor Ahmad 43-50 KM 3,226,770 Total 35,013,717

Annex-H

Item Transaction Name of Payment Work Name Amount(Rs) No. date contractor made on 25/28 12/2003 Nawaz Khan Upgradation of DHQ Hospital 30,070 5/2013 46/64 6/2005 Sh: Sikandrul Mulk Upgradation of GBHU Drassun 72,080 2/2013 into RHC 84/144 8/2006 Moahmmad Fazal Upgradation of Trout Hitchery 16,787 10/2012 91/156 8/2006 Yaqoob Khan B/T of Singoor, Uchust road. 308,935 3/2013 109/185 10/2006 Shafiqur Rehman Construction of Poly Technic Elec 335,788 6/2013 119/201 7/2006 Sajjad Ahmad Construciton of C/Office GPS 12,773 6/2013 Booni 123/218 11/2006 Mir Nizamuddin Repair of Yakhdiz road u.c Khot 18,649 6/2013 124/219 " Mehboob Wali Shah Repair of Yakhdiz road u.c Khot 21,300 6/2013 126/224 12/2006 Qazafi & Co Establishment of Poly Technic 741,394 10/2012 Hostel Chitral 127/225 12/2006 Meraj Hussain Constrcution of Poly Technic 562,254 10/2012 D/Colony 128/226 12/2006 M/S Shoaib Co Establishment of Poly technic 852,479 8/2012 (M.B) 129/227 12/2006 M.Naeem Khan Establishment of Poly technic 49,383 6/2013 (B/W) 131/229 12/2006 Sultan Dawood Establishment of Poly technic 193,799 4/2013 (Hostel) 133/235 12/2006 Asmar Khan Renovation of Chitral Museum 54,434 3/2013 139/242 2/2007 Habibullah Repair of DHQ Hospital Chitral 90,360 3/2013 145/254 2/2007 M.Rahim Shah R/R of BHU Reshun Elec 23,378 6/2013 159/279 20/2007 M.Saad & Co Upgradation of GMS Ursoon 177,660 11/2012 161/284 4/2007 Mir Ashraf Constn Establishment of GPS Lone 13,861 3/2013 Koshum 173/307 4/2007 Murad Hussain GPS Uthool GPS Gaht 21,900 12/2013 174/308 4/2007 Allauddin B/F in GGPS Kashum G.Latrine 46,188 12/2013 176/311 4/2007 Mir Nizamuddin B/F in GPS Khot Bala 23,133 06/2013 183/319 4/2007 Jamiluddin B/F in GPS Parwak Payeen BPS 50,000 10/2012 Parwak Bala 222/406 6/2007 Fazlur Rehman. Construction of Jeepable Bridge 86,654 9/2013 at Shishikoh 250/452 3/2008 Sarfaraz Shah S/Package Kalash Minority 12,979 9/2013 Bumborate 255/462 4/2008 Rehmat Wali Shah Cosntruction of Shishi Koh road 3 1,000,000 5/2013 KM 265/475 6/2008 H.Mohammad Khan Restn: of P/Ground Road & 10,050 10/2012 Hospital road 267/477 6/2008 M.Wali Shah Restn: of Valley road Chitral 8,144 6/2013 278/503 6/2008 Mehboob Wali Shah Restn: of Shotkhar Yakhdiz road 82,000 6/2013 299/522 6/2008 Musa Wali Restn: of Valley road U.C 10,000 6/2013 Drassun 311/539 11/2008 Gul Wali Khan S/Repair to GPS Balim 37,657 6/2013 312/540 11/2008 Fakhruddin S/Repair to GHS Drosh 19,864 1/2013 Total 14,501,777