Audit Reports on the Accounts of Tehsil Municipal Administrations District Muzaffargarh

AUDIT REPORTS ON THE ACCOUNTS OF TEHSIL MUNICIPAL ADMINISTRATIONS DISTRICT MUZAFFARGARH

AUDIT YEARS 2009-2012

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 Observation Classified by Categories ...... vii Table 3: Outcome Statistics ...... viii Table 4: Irregularities Pointed Out...... ix CHAPTER-1 ...... 1 1. TEHSIL MUNICIPAL ADMINISTRATIONS, DISTRICT MUZAFFARGARH ...... 1 1.1 INTRODUCTION ...... 1 1.1.2 Comments on Budget and Accounts (Variance Analysis) ...... 2 AUDIT PARAS ...... 6 1.2 Tehsil Municipal Administration Muzaffargarh ...... 7 1.2.1 Non Production of Record ...... 8 1.2.2 Non Compliance of Rules ...... 10 1.3 Tehsil Municipal Administration Kot Addu ...... 27 1.3.1 Non Production of Record ...... 28 1.3.2 Non Compliance of Rules ...... 31 1.4 Tehsil Municipal Administration Alipur ...... 40 1.4.1 Non Production of Record ...... 41 1.4.2 Non Compliance of Rules ...... 43 1.5 Tehsil Municipal Administration Jatoi ...... 53 1.5.1 Non Production of Record ...... 54 1.5.2 Non Compliance of Rules ...... 56 1.5.3 Performance ...... 66 ANNEXURES ...... 68 ABBREVIATIONS AND ACRONYMS

AGP Auditor General of Pakistan AIR Audit and Inspection Report B&R Building & Road DAC Departmental Accounts Committee DG Directorate General IPSAS International Public Sector Accounting Standards MB Measurement Book MEFDAC Memoranda for Departmental Accounts Committee MRS Market Rate Schedule NAM New Accounting Model PAC Public Accounts Committee PAO Principal Accounting Officer PDG Punjab District Government PFR Punjab Financial Rules PLGO Punjab Local Government Ordinance, 2001 PPRA The Punjab Procurement Regulatory Authority S&GAD Services and General Administration Department TAC Tehsil / Town Accounts Committee TMA Tehsil / Town Municipal Administration TMO Tehsil / Town Municipal Officer TO (F) Tehsil / Town Officer (Finance) TO (I&S) Tehsil / Town Officer (Infrastructure & Services) TO (P&C) Tehsil / Town Officer (Planning & Coordination) TO (R) Tehsil / Town Officer (Regulation) TSE Technically Sanctioned Estimate

Preface

Article 169 & 170 (2) of the Constitution of the Islamic Republic of Pakistan, 1973 and section 115 of the Punjab Local Government Ordinance, 2001 require the Auditor General of Pakistan to conduct the audit of the receipts and the expenditure of the Local Fund and Public Accounts of Tehsil/ Town Municipal Administrations of the Districts.

The report is based on Audit of Tehsil Municipal Administrations of District Muzaffargarh for the years 2008-09, 2009-10 and 2010-11. The Directorate General of Audit District Governments Punjab (South), Multan, conducted audit during 2009-10, 2010-11 and 2011-12 on test check basis with a view to reporting significant findings to relevant stakeholders. The main body of Audit Report includes only the systemic issues and audit findings carrying value of Rs.1 million or more. Relatively less significant issues are listed in the Annexure-1 of the Audit Report. The Audit observations listed in the Annexure-1 shall be pursued with the Principal Accounting Officer at the DAC level and in all cases where the PAO does not initiate appropriate action, the Audit observation 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 internal controls to avoid recurrence of similar violations and irregularities.

Most of the observations included in this Report have been finalized in the light of written responses and discussion with the management.

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

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

EXECUTIVE SUMMARY

The Directorate General Audit, District Governments, Punjab (South), Multan, a Field Audit Office of the Auditor General of Pakistan is responsible to carry out the audit of all District Governments in Punjab (South) including Tehsil and Town Municipal Administrations. Its Regional Directorate of Audit, D.G.Khan has audit jurisdiction of District Governments, TMAs and UAs of four Districts i.e. D.G.Khan, Rajanpur, Layyah and Muzaffargarh.

The Regional Directorate has human resource of 21 officers and staff, constituting 3906 man days and a budget allocation of Rs3.723 million per financial year. It has the mandate to conduct financial attest audit, audit of sanctions, audit of compliance with authority and audit of receipts as well as the performance Audit of entities, projects and programs. Accordingly Regional Director Audit D.G.Khan carried out audit of the accounts of four TMAs of District Muzaffargarh for the financial years from 2008-09 to 2010-11 and the findings included in the Audit Report.

Each Tehsil Municipal Administrations in District Muzaffargarh is headed by a Tehsil Nazim / Administrator. He/she carries out operations as per Punjab Local Government Ordinance, 2001. Tehsil Municipal Officer being Principal Accounting Officer (PAO) acts as coordinating and administrative officer and responsible to control land use, division and development and to enforce all laws including Municipal Laws, Rules and By-laws. The provisions of Local Government Ordinance, 2001 require the establishment of Tehsil / Town Local Fund and Public Account for which Annual Budget Statement is authorized by the Tehsil Council / Nazim / Administrator in the form of Budgetary Grants.

The total Development Budget of four TMAs in District Muzaffargarh mentioned above, for the financial years from 2008-09 to 2010-11, was Rs1,157.871 million and expenditure incurred of Rs925.304 million showing savings of Rs232.567 million in these years. The total Non development Budget for financial years 2008-2011 was Rs761.889 million and expenditure of Rs707.833 million, showing savings of Rs54.056 million. The reasons for savings in Development and Non development Budgets are required to be provided by the TMO and PAO concerned.

iii

Audit of TMAs of District Muzaffargarh was carried out with the view to ascertain that the expenditure was made with proper authorization, in conformity with laws/ rules/ regulations, economical procurement of assets and hiring of services etc.,

Audit of receipts / revenues was also conducted to verify whether the assessment, collection, reconciliation and allocation of revenues were made in accordance with laws and rules and there was no leakage of revenues and revenue did not remain outside Government account/ Local Fund. a. Audit methodology

Audit was conducted after understanding the business processes of TMA with respect to its functions, control structure, prioritization of risk areas by determining their significance and identification of key controls. This helped the Auditors in understanding the systems, procedures, environment, and the audited entity before starting field audit activity. Audit used desk audit techniques for analysis of compiled data and review of permanent files / record. Desk Audit greatly facilitated identification of high risk areas for substantive testing in the field. b. Audit of Expenditure and Receipts

Total Development Budget allocation for financial years 2008-11 was Rs1,157.871 million, out of which total expenditure was Rs925.304 million. Audit of the development expenditure of Rs388.627 million was carried out which was 42% of total expenditure. Audit of Non- Development expenditure of Rs247.741 million out of total expenditure of Rs707.833 million for these years were conducted which is 35% of total expenditure. Total overall expenditure of the TMAs of District Muzaffargarh for the financial years 2008-11 was Rs1,633.137 million, out of which, overall expenditure of Rs636.368 million was audited which, is 39% of total expenditure. Therefore, there was 100% achievement against the planned audit activities. Total receipt of TMAs District Muzaffargarh for the financial years 2008-11 was Rs747.205 million. RDA, D.G.Khan audited receipt of Rs389.135 million which is 52% of the total receipts.

iv c. Recoveries at the instance of Audit

Recoveries of Rs32.903 million were pointed out through various audit paras but no recovery was effected till compilation of this Report. d. Desk Audit

Desk review helped auditors in understanding the systems, procedures, environment of entity and identification of high risk areas for additional compliance testing in the field. The Audit Command Language (ACL) was applied centrally on the Payroll part of appropriation account. As a result, certain irregularities and overpayments were identified, which were communicated to field audit officers for verification and follow-up action. e. The Key Audit Findings of the Report; i. There were 04 cases pertaining to non production of record –Rs442.926 million.1 ii. Violation of rules / financial property amounting to Rs190.690 million was noted in 26 cases.2 iii. Non recovery of government dues amounting to Rs32.903 million was noted in 08 Cases3. iv. Management negligence involving an amount of Rs37.538 million was noted in 06 Cases4.

Audit Paras on the accounts for 2008-11 involving procedural violations including internal control weaknesses and irregularities which were not considered worth reporting to Provincial PAC, have been included in Memorandum For Departmental Accounts Committee, (Annexure-A).

______1Para 1.2.1.1, 1.3.1.1, 1.4.1.1, 1.5.1.1

2Para 1.2.2.1, 1.2.2.2, 1.2.2.3, 1.2.2.4, 1.2.2.5, 1.2.2.7, 1.2.2.8, 1.2.2.9, 1.2.2.10, 1.2.2.11, 1.3.2.3, 1.3.2.4, 1.3.2.5, 1.3.2.7, 1.3.2.8, 1.4.2.1, 1.4.2.2, 1.4.2.5, 1.4.2.6, 1.4.2.7, 1.5.2.1, 1.5.2.2, 1.5.2.3, 1.5.2.6, 1.5.2.8, 1.5.2.10

3 Para 1.2.2.6, 1.2.2.12, 1.2.2.13, 1.3.2.1, 1.3.2.2, 1.4.2.3, 1.5.2.4, 1.5.2.5

4 Para 1.2.3.1, 1.3.2.6, 1.4.2.4, 1.5.3.1, 1.5.2.7, 1.5.2.9 v f. Recommendations

Audit recommends the Tehsil Municipal Administrations (TMAs) to focus on the following issues. i. Production of record to audit for verification ii. Compliance of relevant laws, rules, instructions and procedures, etc. iii. Expediting recoveries pointed out by Audit as well as others recoverable in the notice of management iv. Strengthening of internal controls v. Holding of DAC meetings well in time vi. Proper maintenance of accounts and record vii. Appropriate actions against officers/officials responsible for negligence in performance of duties and achievement of targets viii. Addressing systemic issues to prevent recurrence of various omissions and commissions.

SUMMARY, TABLES & CHARTS

Table 1: Audit Work Statistics (Rs in million) Sr. Budget/ Description No. No. Expenditure Total Entities (PAOs) in Audit 1. 04 1,919.760 Jurisdiction 2. Total formations in audit jurisdiction 04 1,919.760 3. Total Entities (PAOs) Audited 04 1,919.760 4. Audit & Inspection Reports 04 - 5. Special Audit Reports Nil Nil 6. Performance Audit Reports Nil Nil 7. Other Reports Nil Nil

Table 2: Audit Observation Classified by Categories

(Rs in million) Amount Placed Sr. Description under Audit No. Observation 1. Asset management - 2. Financial management 32.903 3. Internal controls - 4. Violation of rules 190.690 5. Others 480.483 Total 704.076

vii

Table 3: Outcome Statistics (Rs in million) Sr. Physical Civil Description Receipts Others Total No Assets Works 1. Outlays audited 27.931 653.964 747.205 1,237.865 2,666.965 Amount placed under audit 2. 6.320 598.031 49.568 50.157 704.076 observation /irregularities Recoveries 3. pointed out at the 0 1.213 31.690 0 32.903 instance of Audit Recoveries accepted / 4. 0 0 0 0 0 established at the instance of Audit Recoveries 5. realized at the 0 0 0 0 0 instance of Audit

* The amount mentioned against Serial No.1 in column of "Total" is the sum of Expenditure and Receipts whereas the total expenditure for the period was Rs1,919.760 million.

viii

Table 4: Irregularities Pointed Out (Rs in million) Amount Placed Sr. Description under Audit No. Observation Violation of rules and regulations and violation 1. of principle of propriety and probity in public 190.690 operations. Reported cases of fraud, embezzlement, thefts 2. - and misuse of public resources. Accounting Errors (accounting policy departure from NAM1 misclassification, over or understatement of account balances) that are 3. - significant but are not material enough to result in the qualification of audit opinions on the financial statements. Quantification of weaknesses of internal 4. - control systems Recoveries and overpayments, representing 5. cases of establishment overpayment or 32.903 misappropriations of public monies 6. Non production of record 442.945 Others, including cases of accidents, 7. 37.538 negligence, non accountal of store etc. Total 704.076

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

CHAPTER-1 1. TEHSIL MUNICIPAL ADMINISTRATIONS, DISTRICT MUZAFFARGARH

1.1 INTRODUCTION

Tehsil Municipal Administration (TMA) consists of Tehsil Nazim, Tehsil Naib Nazim and Tehsil Municipal Officer. Each TMA comprises five Drawing and Disbursing Officers i.e. TMO, TO (Finance), TO Infrastructure & Services (I&S), TO (Regulation), TO Planning and Coordination (P&C), Tehsil Nazim and Tehsil Naib Nazim. The main functions of TMAs are as follows: i. Enforce all municipal laws, rules and bye-laws governing TMA’s functioning; ii. Prepare budget, long term and annual municipal development programmes in collaboration with the Union Councils; iii. Propose taxes, cesses, user fees, rates, rents, tolls, charges, surcharges, levies, fines and penalties under Part-III of the Second Schedule and notify the same; iv. Collect approved taxes, cess, user fees, rates, rents, tolls, charges, fines and penalties; v. Manage properties, assets and funds vested in the Tehsil Municipal Administration; vi. Develop and manage schemes, including site development in collaboration with District Government and Union Administration; vii. Issue notice for committing any municipal offence by any person and initiate legal proceedings for commission of such offence or failure to comply with the directions contained in such notice; viii. Prosecute, sue and follow up criminal, civil and recovery proceedings against violators of Municipal Laws in the courts of competent jurisdiction; ix. Maintain municipal records and archives.

1.1.2 Comments on Budget and Accounts (Variance Analysis)

(Amount in Rs) Excess (+)/ 2008-11 Budget Actual %Saving Saving(-) Salary 379,838,000 354,749,000 -25,089,000 7 Non Salary 382,051,000 353,084,000 -28,967,000 8 Development 1,157,871,000 925,304,000 -232,567,000 20 Total 1,919,760,000 1,633,137,000 -286,623,000 15 Revenue 747,205,000 747,205,000 0 0

(Amount in Rs)

Details of the budget allocations, expenditures and savings of each TMA of District Muzaffargarh for three financial years are at Annexure-B.

As per the budget books the expenditure relating to TMAs in District Muzaffargarh was Rs1,633.137 million against original budget of Rs1,919.760 million. There was a saving of Rs286.623 million for which the reasons should be explained by the PAO, Tehsil Nazims and management of TMAs.

(Amount in Rupees)

The comparative analysis of the budget and expenditure of current and previous financial years is depicted as under:

(Rs in million)

There was overall saving in the budget allocations for the financial years 2008-09, 2009-10 and 2010-11 are as follows: (Rs in million) Financial Budget % of Expenditure Total Saving Year Allocation Saving 2008-09 566.997 501.512 65.485 11.54 2009-10 611.872 517.324 94.548 15.45 2010-11 740.891 614.301 126.59 17.08 Total 1919.76 1633.137 286.623 15.00

The justification of saving when the development schemes have remained incomplete is required to be provided/ explained by PAO and TMO concerned.

AUDIT PARAS

1.2 Tehsil Municipal Administration Muzaffargarh

1.2.1 Non Production of Record

1.2.1.1 Non Production of Record of CCBS and POL - Rs173.963 million

According to Section 14(3) of Auditor General of Pakistan Ordinance envisages that 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. According to Section 115(6) of Punjab Local Government Ordinance 2001, the officials shall afford all facilities and provide record for audit inspection and comply with requests for information in as complete a form as possible and with all reasonable expedition.

Tehsil Municipal Officer transferred an amount of Rs173.963 million during 2008-09, 2009-10 and 2010-11. The relevant record i.e., estimates, progress report, completion certificate and vouched accounts of the schemes was not produced to audit in violation of the above rule. The detail is as below:

(Rs in million) Year Description Amount 2008-09 Record of CCBs 96.000 2009-10 58 Development Schemes of CCBs 63.853 Development 13.300 2010-11 POL 0.810 Total 173.963 Owing to non production of record audit could not verify the authenticity of above expenditure. In response to audit observation management replied that CCBs concerned had been requested for provision of record.

Request for convening of DAC meetings was made on 30-03-2010 and 10-03-2011 but it could not be held till finalization of this Report.

Audit recommends fixing of responsibility for non production of record and disciplinary action in terms of Section 14(3) of Auditor General's (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001. 9

[AIRs Para 17-2008-09, Paras 05,17-2009-10 Paras 1,4-2010-11 ]

1.2.2 Non Compliance of Rules

1.2.2.1 Unauthorized Execution of Development Schemes - Rs18.654 million

According to rule 42 (1)(2) of the PDG & TMA (Budget) Rules 2003, as far as possible development projects shall be completed within the financial year. In exceptional circumstances a project may be phased over two financial years.

Tehsil Municipal Officer could not execute 52 No. development schemes valuing Rs18.654 million within the financial years 2008-2009. The works were awarded to the contractors during 2008-09 but neither the said works were started by the contractors within the due period nor efforts were made to complete the works within stipulated / extended period. All the schemes were still in progress till 31-01-2011. Detail is given in Annexure-C.

Non completion of development schemes within due time resulted in unauthorized execution of development schemes.

The matter was reported to the TMO during February, 2011. In DAC meeting held on 16th March, 2011, Tehsil Municipal Officer replied that schemes were taken up late due to delay in site clearing. Reply was not accepted because no documentary evidence for site problem was produced to audit. The DAC directed to regularize the expenditure from the competent authority. No further progress was intimated by the department till the finalization of this Report.

Audit recommends initiation of disciplinary action against officer concerned for violation of the rules while attempting to deny the role of competent authorities in approval of development portfolio.

[AIR Para 8-2009-10]

1.2.2.2 Unauthorized Expenditure on Works – Rs8.870 million

According to section 88 (f) of PLGO 2001, construction and maintenance of culverts is the responsibility of Union Administration.

Tehsil Municipal Officer incurred an expenditure of Rs8.870 million on the construction of culverts beyond the functions defined for TMAs during 2009-10. (Annexure-D)

TMA incurred expenditure against the works not falling in its stated function resulting improper utilization of budget.

The matter was reported to the TMO during February, 2011. In DAC meeting held on 16th March, 2011, Tehsil Municipal Officer replied that construction of bridges and culverts were made on the public demand. The reply was not satisfactory as the schemes were executed beyond the functions of TMA. DAC directed to regularize the expenditure from the competent authority. No further progress was intimated by the department till the finalization of this Report.

Audit recommends that the irregularity be got regularized from competent authority.

[AIR Para 11-2009-10]

1.2.2.3 Execution of works without detailed measurements - Rs8.627 million

According to Para 4.5 of B & R Code, no payment should be made without detail measurement in the measurement book, further according to Rule 60 of PLG TMA (Works) Rules 2003, full particulars of the work measured shall be given in the measurement which shall include the work being readily identified and the measurement being checked.

Tehsil Municipal Officer paid an amount of Rs8.627 million to various contractors against different works. The measurements were recorded without mentioning running distance due to which the authenticity of measurements could not be ascertained and chances of overpayment could not be ruled out. The start and end point of each work was not clearly mentioned as detailed below:

(Amount in Rupees) Name of Work Amount Const. Drain / Sewrage Khangarh zone -1 4,604,000 Const. M/R Qadray wali to Mara road 1,100,000 Const. soling, drain basti Aluday wali 899,007 Const. M/R Pull bahashti to basti Koray wala 1,598,000 Const. M/R Basti Jewan waka 425,848 Total 8,626,855

The matter was reported to the TMO during February 2010. In DAC meeting held on 9th April, 2010, Tehsil Municipal Officer replied that measurement was done by the sub-engineers and checked by the TO (I&S). DAC directed to conduct an enquiry to find out the reason for not making the measurements on prescribed procedure. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for making the payment without actual measurements besides an enquiry to find out the actuality of work done under intimation to Audit.

[AIR Para: 1-2008-09]

1.2.2.4 Unauthorized Payment on Account of Salaries of Contingent Paid Staff – Rs8.007 million

According to Government of Punjab Finance Department letter no. FD.SO (GOOD) 44-4/2010 dated 9th August, 2010, no contingent paid staff shall be appointed without obtaining the prior approval of Finance Department.

Tehsil Municipal Officer paid Rs8.007 million on account of pay for contingent paid staff during 2010-11 without approval of Finance Department in violation of above rule.

Due to weak internal controls, the recruitment of contingent paid staff was made without approval of Finance Department resulted in unauthorized payment.

The expenditure against pay of contingent paid staff without prior approval of Finance Department was unauthorized.

The matter was reported to TMO in March, 2012. He neither submitted any reply nor the DAC meeting was convened despite written request made vide this office letter No. RDA/DGK/CD-127 dated 06.03.2012.

Audit recommends fixing of responsibility on officer concerned for appointing contingent paid staff without approval of Finance Department besides regularization of expenditure from the competent authority.

[AIR Para 6-2010-11]

1.2.2.5 Doubtful consumption of store items without indents and acknowledgements - Rs6.614 million

According to Rule 15.4(a) and 15.5 of the PFR, Vol-I, all materials received should be examined, counted, measured and weighed, as a case may be, when delivery is taken and they should be kept in charge of a responsible Government servant. 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. When materials are issued a written acknowledgement should be obtained from the person to whom they are ordered to be delivered or dispatched and when materials are issued from stock for departmental use, manufacture or sale, etc., the Government servant in charge of the stores should see that an indent in PFR Form 26 has been made by a properly authorized person.

Tehsil Municipal Officer incurred an expenditure of Rs6.614 million during 2008-09 and 2009-10 for purchase of street lighting material and delta metherine/insecticides. The consumption record along with requests/indents from the end users demanding the installation of street lights and the areas covered for spray of delta metherine/insecticides at different spots was not available on the

record. These items were issued/consumed without any requests and approved indents, which rendered the consumption/utilization of the same as doubtful.

(Rupees in million) Year Description Amount 2008-09 Lighting Items 2.204 Delta Metherine 1.837 2009-10 Insecticides 1.140 Electric Material 1.433 Total 6.614

The DAC meetings held on 9th April, 2010 and 16th March2011, Tehsil Municipal Officer replied that the stock register is available. DAC directed to produce the complete consumption record as required by Audit. No further progress was intimated by the department till the finalization of this Report.

Audit recommends fixing of responsibility on the official concerned for issuing the stocks without demand and violating codal formalities under intimation to Audit.

[AIR Paras: 3, 4-2008-09 Para 6-2009-10]

1.2.2.6 Non Recovery of Government Revenues - Rs5.607 million

According to rule 76 (1) of the PDG and TMA (Budget) Rules, 2003, the primary obligation of the Collecting Officer shall be to ensure that all revenue due is claimed, realized and credited immediately into Local Government Fund under proper receipt head.

Tehsil Municipal Officer did not recover Rs5.607 million during 2008-09, 2009-10 and 2010-11 of the auctioned amount for various contracts from the contractors. The detail is as below: (Amount in Rupees) Year Name of Total Amount Name of Lease Balance contractors Auction deposited 2008-09 Adda Fee Vegan stand - - Khangarh 1,600,000 196,515 License Fee Food & - - 15

Drinks 885,000 442,500 2009-10 Bus Stand M.Garh Farzand Ali 6,900,012 6,343,750 556,262 Wagon Stand Khan Abdul 2,856,548 2,495,750 360,798 Garh Hameed Rent of shop - - 60,000

2010-11 Adda Fee GBS Faisal 8,318,200 6,788,913 1,529,287 Muzaffargarh Qammar Adda fee GBS Mumtaz 5,218,913 3,861,000 1,357,913 Muzaffargarh Hussian Adda fee GBS Khan Mumtaz 4,112,976 3,059,673 1,053,303 Garh Hussian Commercialization fee 50,765 Total 5,607,343

Due to weak financial management, the government revenue was not recovered.

The non recovery of auctioned amount caused loss to government.

Audit recommends fixing of responsibility against the persons concerned beside recovery of outstanding amount.

[AIRs Para 10-2008-09, Para 1-2009-10 Paras 8, 11-2010-11]

1.2.2.7 Unauthorized award of work by splitting the scheme - Rs5.001 million

According to Government of Punjab Local Government and Community Development Department notification No.SO-V(LG)5-48/2002 dated 28.03.2006 the power of Tehsil Officer (I&S) of BS-17 was enhanced to Rupees one million for the purpose of technical sanction. Further, according to Chief Engineer letter No.CE(HQ)PLGB-6/2008 dated 13.05.2008, the scheme beyond the competency of Tehsil Officer (I&S) was required to be forwarded to the Chief Engineer for technical sanction.

Tehsil Municipal Officer technically sanctioned the construction of drainage / sewerage Khan Garh Part 1st & 2nd valuing Rs5.001 million during 2008-09 by splitting the scheme into two parts, to avoid the sanction of the higher authority, thus breaching the internal control system designed for effective financial management as detailed below.

(Amount in Rupees) Date Work Amount (TS) 04.10.2004 Const. Drain / Sewerage Khangarh Part – 1 3,934,000 04.10.2004 Const. Drain / Sewerage Khangarh Part – 11 1,067,000 Total 5,001,000

The matter was reported to the TMO during February, 2010. In DAC meeting held on 9th April, 2010, Tehsil Municipal Officer replied that TS was within the competency of authority. DAC directed to get the expenditure regularized from competent authority. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for violation of rules besides regularization of the expenditure from competent authority under intimation to Audit.

[AIR Para 1- 2008-09]

1.2.2.8 Unauthorized execution of works after lapse of estimates - Rs4.995 million

According to Para 19 of TMA (Works) Rules 2003, an estimate for a maintenance work shall lapse after the expiry of the financial year to which it relates. And an estimate other than repair work should lapse after a period of three years.

Tehsil Municipal Officer incurred an expenditure of Rs4.995 million during 2008-09 on “Const. Drain / Sewerage Khangarh zone -1”. The TS of the said schemes was accorded on 04.10.2004 which lapsed on 30.06.2007 as per above quoted rule. So the incurrence of expenditure during 2008-09 was held unauthorized.

The matter was reported to the TMO during February, 2010. In the DAC meeting held on 9th April, 2010, Tehsil Municipal Officer replied that approval 17 from Tehsil Council was obtained. DAC directed to regularize the expenditure from competent authority. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixation of responsibility on the officer concerned for regularization of the expenditure besides penalty on the contractors under intimation to Audit.

[AIR Para: 7- 2008-09]

1.2.2.9 Incurrence of Expenditure without Calling Tender – Rs4.218 million

According to clause 12(1) of Punjab Public Procurements Rules 2009, procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website in the manner and format specified by regulation by the PPRA from time to time. These procurement opportunities may also be advertised in print media, if deemed necessary by the procuring agency.

Tehsil Municipal Officer incurred expenditure of Rs4.218 million on account of purchase of various items, through calling local quotations instead of tendering for the values exceeding limit of Rs100,000 in violation of above rule during 2009-10 as detailed below:

(Amount in Rs) Sr. Date Description Amount No. 1 29.9.2009 Insecticides 592,412 2 14.12.2009 Insecticides 548,100 3 18.2. 2010 Electric Materials 239,293 4 18.2.2010 Electric Materials 417,569 5 28.5.2010 Electric Materials 199,600 6 14.4.2010 Pena Flex Board 190,000 7 24.5.2010 Banners 215,500 8 20.2.2010 Hand Trolley 710,640 9 15.5.2009 Chemical Foam for fire fighting 528,000 10 30.1.2010 Fire Brigade items 576,942 Total 4,218,056 18

Audit held that purchase was made in violation of the above instructions which resulted in unauthorized purchase. Moreover, purchase of stores items from the local market through quotations resulted in uneconomical purchase.

The matter was reported to the TMO during February, 2011. In DAC meeting held on 16th March, 2011, Tehsil Municipal Officer replied that purchases were made through calling quotations. The reply was not accepted as neither the purchases were made through tender nor advertised on PPRA web site. DAC directed to regularize the expenditure from the competent authority. No further progress was intimated by the department till the finalization of this Report.

Audit recommends fixing of responsibility on the officer concerned for non observing the Government instructions besides regularization of the expenditure from competent authority.

[AIR Para 4-2009-10]

1.2.2.10 Purchase of vehicles / machinery without proof of specification – Rs4.160 million

As per Chapter iii Para 5(2) of the Punjab Purchase Manual, it should be ensured that the specifications given in the indent conform to those prescribed by the departmental or inter departmental committee, as the case may be. Purchase of stores in respect of which specifications have not been given shall only be made after getting specifications approved by the competent standardization committee. In no case procurement shall be made without getting the specifications of the stores vetted / approved by the competent committee.

Tehsil Municipal Officer paid an amount of Rs4.160 million during 2008-09 to supplier on account of purchase of Fire Brigade vehicles and fitted equipments without getting the approval of specification from the competent standardization committee. Further, vehicles were not inspected by the technical inspection committee to find out the quality of vehicles supplied.

The matter was reported to the TMO during February, 2010. In the DAC meeting held on 9th April, 2010, Tehsil Municipal Officer replied original documents provided by the company are available. DAC directed to produce the technical inspection report within one month. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for not executing the agreement with the supplier under intimation to Audit.

[AIR Para: 5-2008-09]

1.2.2.11 Payments without Detailed Measurements - Rs1.769 million

According to B & R Code Paragraph 4.5, No payment should be made without detail measurement in the measurement book. The description of the work must be lucid so as to admit of easy identification and check.

Tehsil Municipal Officer incurred an expenditure of Rs1.769 million on account of development scheme of “Repair/Rehabilitation of soling and metalled road from Ali Pur to Ari wala, chah Nizam Wala” but it was made without mentioning the detail record entries i.e. Earth Work, Sub-base, Edging Base course and TST in measurement book, without which the authenticity/accuracy of expenditure could not accepted/verified.

Due to weak internal controls, detailed record measurement was not entered in the measurement books.

Non recording of entries in the measurement books resulted in irregular expenditure.

Audit recommends fixing of responsibility against the persons at fault besides regularization of expenditure with the sanction of competent authority.

[AIR Para 21-2010-11] 20

1.2.2.12 Non Deduction of GST from Suppliers Rs1.235 million

According to Finance Department letter no. FD SO (Tax) 1-11/97 dated 19.09.1998, all purchases should be made from the firms registered with Sale Tax Department and payment of GST be made on submission of sales tax Invoices showing the sale tax registration number.

Tehsil Municipal Officer purchased various items valuing Rs7,266,529 during 2010-11. Neither the Sales Tax amounting to Rs1,235,310 was deducted at the time of payment nor GST invoices were provided by the suppliers. The detail of purchases is as below:

(Amount in Rupees) Total Ref. / V.No. Name of work Contractor GST Payment Providing / dumping 53 No. of Rana 21.07.2010 solid waste containers androon 2,500,000 425,000 Ab.Aziz hadood CO Unit M.Garh Providing / dumping 58 No. of Rana solid waste containers androon Nadeem 21.07.2010 2,761,000 469,370 hadood Qasba Rohillanwali 19.12.209,22- CO Unit Khan Garh 02-2010 P/F RCC Bowls, plants for Abdul 400/04-2011 551,549 93,763 beautification of M.Garh city Hameed Supply of filters for 115/01-2011 Ab.Hameed 200,000 34,000 purification plants M.Garh S/O Plants, gamlas for TMA 184/08-2010 M.Tariq Rai 70,000 11,900 Office S/O Delivery pipe synthetic, Shaikh 562/06-2011 560,714 95,321 new dewatering set Ashraf S/O Plants, gamlas for Thal Ch.Amjad 186/08-2010 101,016 17,173 Chowk, Jhang more Pervaiz P/F RCC Bowls, plants for 170/08-2010 M.Tariq Rai 522,250 88,783 Katchehry road Total 7,266,529 1,235,310

Due to weak financial management, the purchases were made from unregistered supplier and the GST was not deducted at source.

The non deduction of GST resulted in loss to government.

Audit recommends that Sales Tax be recovered from the suppliers and deposited into government treasury under intimation to Audit.

[AIR Para 25-2010-11]

1.2.2.13 Overpayment on account of Contractor Profit and Overhead Charges – Rs1.213 million

According to Finance Department letter no.RO(Tech)FD.18-23/ 2004 dated 21st September, 2004, all the store items i.e. machinery , turbine, water filtration plant, electricity items required to be purchased as per rules laid in purchase manual and no contractor profit and overhead charges are allowed to the contractor. Tehsil Municipal Officer awarded a work “Provision of Generators and Dumping Containers” to contractors. Excess payment of Rs1,212,654 was allowed on account of contractors’ profit and overhead charges on purchase of such Generators and Containers. The detail is as below:

(Amount in Rupees) Ref. / Voucher Contractor / Contractor Name of work T.S. Amount No. S.O. profit Supplying Installation of 02 3rd Final / M. Aslam / Generator set (Seimens) 100/110 5,128,000 400,000 400/10-2010 7386/05-08-09 KVA Providing / dumping 53 No. of Rana Ab.Aziz 21.07.2010 solid waste containers androon 2,500,000 197,033 470/22-02-2010 hadood CO Unit M.Garh Providing / dumping 58 No. of Rana Nadeem solid waste containers androon 21.07.2010 19.12.209,22- 2,761,000 215,621 hadood Qasba Rohillanwali CO 02-2010 Unit Khan Garh Supplying Installation of 02 3rd Final / M.Aslam / Generator set (Seimens) 50/55 3,850,000 400,000 399/10-2010 7380/01-08-09 KVA Total 14,239,000 1,212,654 23

Due to weak internal controls, overpayment on account of contractor's profits and overhead charges were made to the contractors.

Over payment on account of contractor's profit and overhead charges resulted in loss to government.

Audit recommends fixing of responsibility on the officer concerned besides recovery of overpayment.

[AIR Para 2-2010-11]

1.2.3 Performance

1.2.3.1 Non Achievements of Receipt Targets – Rs9.932 million

According to Rule 29 of PDG and TMA (Budget) Rules 2003, Estimates of revenue in the budget shall be as accurate as possible and shall neither be inflated nor under-pitched in making the estimates, receipts during the preceding years, the receipt during the current year, the various economic factors regulating such receipts and other relevant factors shall be given due consideration.

Tehsil Municipal Officer could not achieve the receipt targets valuing Rs9.932 millions. Comparing the estimated receipts with actual receipts, 23.92% of budgeted receipts remained unachieved which clearly shows that either the Govt. receipt is being misappropriated or no efforts were being made to recover the Government receipts. The detail is as below:

(Amount in Rupees) Head Target Recovered Balance %age Immoveable 36,800,000 29,579,334 7,220,666 19.62 Property Tax License fee food & 925,000 547,340 377,660 40.83 Drinks Building Plan Fee 2,500,000 1,049,000 1,451,000 58.04 Water Rate 300,000 28,460 271,540 90.51 Advertisement fee 1,000,000 388,020 611,980 61.20 Total 41,525,000 31,592,154 9,932,846 23.92

Due to ineffective management, the receipt targets were not achieved.

Non achievement of receipt targets resulted in loss to government.

Audit recommends the investigation regarding non achievement of receipt targets besides fixing the responsibility on persons at fault.

[AIR Para 9-2010-11] 26

1.3 Tehsil Municipal Administration Kot Addu

1.3.1 Non Production of Record

1.3.1.1 Non production of record – Rs225.486 million

Tehsil Municipal Officer incurred expenditure of Rs225.486 million to CCBs and development schemes during 2008-09 and 2009-10. The relevant record i.e., estimates, progress report, completion certificate and vouched accounts of the schemes was not produced to audit in violation of the above rule. The detail is as below:

(Amount in Rupees) Financial Name of CCB Description Amount Year Ahmad Cons. of culverts U/C 3 Kot 959,776 Abdullah CCB Addu Cons. of Nali soling U/C Pati G. Khalil 1,270,388 Madadgar Ali CCB Cons. of Culverts U/C pati G Ali 1,971,840 Cons. of Culverts U/C pati G Sahara CCB 1,590,400 2008-09 Ali Cons. of Nali sooling UC D Sahara CCB 1,472,000 kalasra 17 Culverts Patal Munda 783,600 Kisan Doost 8 culverts Patal Munda 786,786 CCB 25 culverts Patal Munda 770,096 Abdullah CCB 100 Culverts U/C Aloward 2,508,062 Various CCBs Expenditure on CCB 1,697,699 Development expenditure 94,494,431 2009-10 Office Expenditure Operating expenditure 79,687,475 Immoveable property tax 33,425,000 29

POL 4,068,081 Total 225,485,634 Owing to non production of record audit could not verify the authenticity of above expenditure.

In response to audit observation management replied that CCBs concerned had been requested for provision of record.

The matter was reported to the TMO during February, 2010. In DAC meeting held on 13th April, 2010, Tehsil Municipal Officer replied that the relevant record will be produced shortly. DAC directed to produce the complete record within one month for verification. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility against the officer concerned for non production of record under intimation to Audit.

[AIR Para 8-2008-09, Paras 4,7,8,11-2009-10]

1.3.2 Non Compliance of Rules

1.3.2.1 Non recovery of outstanding revenue - Rs5.746 million

According to Rule 76 of Punjab District Government and TMA (Budget) Rules 2003, the primary obligation of collecting officer shall be to ensure that all revenue due is claimed, realized and credited immediately into the Local Government Fund under the proper receipt head.

Tehsil Municipal Officer did not recover the outstanding revenue amounting to Rs5.746 million from fifty-six contractors which was pending from 2001-02 to 2007-08. The outstanding revenue was neither recovered nor was the contractor concerned black listed.

The matter was reported to the TMO during February, 2010. The DAC meeting was held on 13.04.2010 Tehsil Municipal Officer replied that the recovery will be made shortly. DAC directed to recover the amount within one month. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for non recovery of outstanding revenue from the contractors.

[AIR Para 4-2008-09]

1.3.2.2 Less Recovery from Contractors – Rs4.391 million

According to Rule 76 (1) of PDG and TMA Budget Rules, 2003, the primary obligation of the collection officer shall be to ensure that all revenue due is claimed, realized and credited immediately in to the local government fund under the proper receipt head.

Tehsil Municipal Officer did not recover an outstanding amount of Rs4.391 million during 2008-09 and 2009-10 on account of bus/wagon stand fee and license fee etc. from various contractors as detailed below:

(Amount in Rupees) Financial Year Name of Lease Name of Contractor Amount Bus Stand Fee Niaz Ahmad Khan 580,126 Wegon/Bus Stand Sana Ullah 669,574 2008-09 Fee. License Fee Riaz Hussain 626,082 Cattle Mandi Kot Addu Sajad Haider 651,000 Bus Stand C.S Shaheed M.Abid 135,562 Bus Stand D.D Panah Amjad perveez 548,631 2009-10 Advertisement fee Muhammad Aslam 6,100 License Fee M. Amjad 604,965 Bus Ada Kot Addu Shamim ul Hassan 384,122 Wagon Ada Kot Addu -do- 185,803 Total 4,391,965

Audit recommends fixing of responsibility on the officer concerned for non recovery of outstanding amount from the contractors concerned.

[AIR Para 1-2008-09 Para1-2009-10]

1.3.2.3 Unauthorized incurrence of expenditure without Pre-Audit - Rs4.198 million

According to rule 4(2)(i)(3)(viii) of PDG & TMA (Budget) Rules, 2003, TMO is responsible for ensuring that the internal controls are effectively applied.

Tehsil Municipal Officer made unauthorized payment of Rs4.198 million on account of salaries to various staff during 2008-09 without the pre-Audit of the payment of vouchers from Tehsil Accounts Officer concerned as detailed below:

(Amount in Rupees) Vr No Date Amount 81 74,280 82 142,265 83 27,963 84 13,932 85 12,443 86-97 240,227 98 174,048 99 35,942 100 8,079 101 17.04.09 82,231 65 150,706 66 57,285 67 20,586 68-80 1,676,167 34 108,186 35 79,602 36 35,568 37-64 1,258,441 Total 4,197,951

The matter was reported to the TMO during February, 2010. The DAC meeting was held on 13.04.2010, Tehsil Municipal Officer replied that the expenditure will be regularized shortly. DAC directed to regularize the expenditure as early possible. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for not observing the rule.

[AIR Para 10-2008-09]

1.3.2.4 Purchase without calling tenders – Rs3.025 million

According to Para 7 of Chapter-III of Purchase Manual read with Government of the Punjab Notification No. SO/P&C(I&F)-V5/71 dated 18.10.2003, indents for the value exceeding Rs100,000 should be advertised in the press.

Tehsil Municipal Officer Kot Addu incurred expenditure of Rs3,024,927 on account of purchase of various items, as per detail given below, during 2008-09 by calling local quotations for the values exceeding limit of Rs100,000 in violation of above instructions.

(Amount in Rupees) Vr Date Items Paid to Amount No 204 19-09-08 Street Energy Savor Cable CC Rana Irfan 825,000 Shaheed 54 15-10-08 Elec. Items Bulb Cable Sultan 161,847 60 29-10-08 Sports Items For Tournament K Adu Sports 177,900 140 14-01-09 Jackets Uniform Faiz 201,300 142 -do- Sanitary Items Rana Riasat 257,120 51 12/3/09 Elec items Bulb Cabel Kot Addu Muhammadi 209,000 218 27-01/09 -do- Sultan 600,000 144 25-04-09 Elec. Items Bulb Cable Rana Irfan 592,760 Total 3,024,927

The matter was reported to the TMO during February, 2010. The DAC meeting was held on 13.04.2010, Tehsil Municipal Officer replied that the purchase of store was made through press and three quotations were received. DAC directed to regularize the expenditure with the sanction of competent authority. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for non observing the Government instructions.

[AIR Para 9-2008-09]

1.3.2.5 Execution of works without detailed measurements - Rs2.389 million

According to Para 4.5 of B&R Code, no payment should be made without detailed measurement in the measurement book. Further as per rule 60 of the Punjab TMA (Works) Rules 2003, full particulars of the work measured shall be given in the measurement which shall include the work being readily identified and the measurement being checked.

Tehsil Municipal Officer paid an amount of Rs2.389 million to various contractors on account of following development works whereas the measurements of the said works were recorded without mentioning running distance. Further, the start and end point of each work was also not recorded/ mentioned in violation of above rule.

(Amount in Rupees) Vr. Date Items Amount No 204 19.09.08 Supply of energy savor cable for CO unit CS 825,000 Shaheed 144 25.04.09 Supply of sanitary item for CO unit CS Shaheed 592,760 51 12.03.09 Supply of energy savor cable for CO unit Kot Addu 209,000 218 27.01.09 -do- 600,000 54 15.10.08 -do- 161,847 Total 2,388,607

The matter was reported to the TMO during February, 2010. The DAC meeting was scheduled on 13.04.2010, Tehsil Municipal Officer replied that measurement was done RD wise and measurement books will be produced shortly. DAC directed to produce the complete record with evidence for verification. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for making the payment without actual measurement besides

[AIR Para: 11-2008-09]

1.3.2.6 Loss of Rent due to Encroachment of Property – Rs2.160 million

According to rule 3 (k) of Punjab Local Government (Property) Rules, 2003, the manager shall be vigilant about and to check encroachments or wrongful occupation on property and in case there is any encroachment or wrongful occupation take necessary steps for removal thereof.

Tehsil Municipal Officer failed to vacate the first floor of Municipal plaza Kot Addu consisting of ten (10) rooms and 01 residential building occupied by the unauthorized persons since 2001. No serious efforts had been made to vacate the government premises from unauthorized occupants or recover rent of the shops and residential house from them. Assuming average monthly rent of Rs1,000 for each shop and Rs10,000 for residential building, Government had sustained a loss of Rs2,160,000 from 2001-02 to 2009-10.

Audit held that timely action was not taken for vacation of encroached property which resulted in loss to Government on account of receipts under rent.

The matter was reported to the TMO during February, 2011. In DAC meeting held on 16th March, 2011, Tehsil Municipal Officer replied that the case for recovery of rent is in the Court of Law. DAC directed to recover the rent at the earliest. No further progress was intimated by the department till the finalization of this Report.

Audit recommends fixing of responsibility on officer concerned for not making timely actions for the vacation of encroached Government premises besides recovery of loss sustained since 2001.

[AIR Para 3-2009-10]

1.3.2.7 Doubtful consumption of POL due to non production of log books – Rs1.971 million

According to Rule 20 of West Pakistan Staff Vehicles (Use & Maintenance) Rules 1969, Log Book, History Sheet and Petrol Account Register shall be maintained for each Government owned vehicle.

Tehsil Municipal Officer incurred an expenditure of Rs1.971 million during 2008-09 for purchase of POL for tractors, generators and various vehicles under the control of TMO, but relevant log books of above mentioned vehicles were not produced for audit scrutiny. (Annexure-E)

The matter was reported to the TMO during February, 2010. The DAC meeting was held on 13.04.2010, Tehsil Municipal Officer replied that the relevant log books will be provided shortly. DAC directed to produce the log books of vehicle for verification. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for making the payment without record of actual consumption of POL.

[AIR Para: 14-2008-09]

1.3.2.8 Unauthorized Purchase of Stores and Doubtful Consumption - Rs1.368 million

According to rule 12 (1) of The Punjab Public Procurements Rules 2009, the procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website in the manner and format specified by regulation by the PPRA from time to time. These procurement opportunities may also be advertised in print media, if deemed necessary by the procuring agency. Further According to rule 15.4(a) and 15.5 of the PFR, Vol-I, when materials are issued, a written acknowledgement should be obtained from the person to whom they are ordered to be delivered or dispatched.

Tehsil Municipal Officer incurred expenditure of Rs1.368 million on account of purchase of various items, as per details given below, through calling local quotations instead of tendering for the values exceeding limit of Rs100,000 during 2009-10. Further, the issuance of store from the stock register was shown without demand, approved indent and acknowledgement of recipient which make the expenditure doubtful.

(Amount in Rs ) Sr. Date Description Amount No. 1 04.09.2009 Purchase of insecticides 445,614 2 21.07.2009 Purchase of donkey cart 221,000 3 10.10.2009 Sports materials 266,035 4 30.01.2010 Electric materials 193,000 38

5 05.04.2010 -do- 142,215 6 19.02.2010 -do- 100,000 Total 1,367,864

Audit held that non invitation of tenders caused uncompetitive purchases and loss to Government. Moreover, owing to non maintenance of stock registers, consumption of store became doubtful.

The matter was reported to the TMO during February, 2011. In DAC meeting held on 16th March, 2011, Tehsil Municipal Officer replied that PPRA will be complied with in future. Reply of the management was found in contravention of standing government instruction. DAC directed to regularize the expenditure from the competent authority. No further progress was intimated by the department till the finalization of this Report.

Audit recommends fixing of responsibility on the officer concerned for non observing the Government instructions and regularization the expenditure from the competent authority.

[AIR Paras: 6, 12-2009-10]

1.4 Tehsil Municipal Administration Alipur

1.4.1 Non Production of Record

1.4.1.1 Non Production of Record of CCBs – Rs17.869 million

Tehsil Municipal Officer transferred an amount of Rs17.869 million to CCBs during 2008-09 and 2009-10. The relevant record i.e., estimates, progress report, completion certificate and vouched accounts of the schemes was not produced to audit in violation of the above rule.

Owing to non production of record, the authenticity of expenditure could not be verified.

In response to audit observation, management replied that the record would be produced shortly.

The matter was reported to the TMO during February, 2011. The DAC meeting was scheduled on 09.03.2011 but it could not be held. Moreover, TMO neither submitted any reply nor produced record for verification. No further progress was intimated by the Department till the finalization of this Report.

[AIR Para 1-2008-09 Para 5-2009-10] 42

1.4.2 Non Compliance of Rules

1.4.2.1 Unauthorized award of work by splitting the scheme - Rs11.100 million

According to Government of Punjab Local Government and Community Development Department notification No.SO-V(LG)5-48/2002 dated 28.03.2006 the power of Tehsil Officer (I&S) of BS-17 was enhanced to rupees one million for the purpose of technical sanction. Further according to Chief Engineer letter vide No.CE(HQ)PLGB-6/2008 dated 13.05.2008, the scheme beyond the competency of Tehsil Officer (I&S) was required to be forwarded to the Chief Engineer for technical sanction.

Tehsil Officer (Infrastructure and Services) technically sanctioned the eight development schemes valuing Rs5.900 million during 2008-09 and 10 small schemes valuing Rs. 5.200 million during 2009-10 without approval of the Chief Engineer or by splitting the scheme into two parts, to avoid the sanction of the higher authority, thus breaching the internal control system designed for effective financial management as detailed below.

(Amount in Rupees) Financial Amount of Year Scheme T.S 2008-09 Const. of M/Road Sarki Road to Basti Burrera Part-1 800,000 Const. of M/Road Sarki Road to Basti Burrera Part-2 2,000,000 Const. of soling Basti Pehlwan Arain Part-1 600,000 Const. of soling Basti Pehlwan Arain Part-1I 400,000 Const. of soling Basti Afzal Arain Part-1 500,000 Const. of soling Basti Afzal Arain Part-1I 300,000 Const. of Soling Muhammad Alam to Maki Chowk 600,000 Part-I Const. of Soling Muhammad Alam to Maki Chowk 700,000 Part-II 2009-10 (a) Construction of metalled road from Nawa Deera To Police Choki Suleman Nahar Siper No.4 Murad 700,000 pur Janobi (b) Construction of metalled road from Nawa Deera To Police Choki Suleman Nahar Siper No.4 Murad 700,000 pur Janobi (a) Construction of soling Khair pur road bypass to 500,000 MuhammadAjmal house (b) Construction of soling Khair pur road bypass to 500,000 MuhammadAjmal house 44

Repair metalled road Khair pur chowk Girls college 400,000 Part-i Repair metalled road Khair pur chowk Girls college 400,000 Part-ii Repair metalled road Khair pur chowk Girls college 500,000 Part-iii Repair Road cut water supply line Alipur city part-i 500,000 Repair Road cut water supply line Alipur city part-ii 500,000 Repair Road cut water supply line Alipur city part-iii 500,000 Total 11,100,000

The matter was reported to the TMO during February, 2010. In DAC meeting held on 21.04.2010, Tehsil Municipal Officer replied that the case has been submitted to authority concerned for regularization. DAC directed to get the expenditure regularized within one month and submitted for verification. No further progress was intimated by the Department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for violating the standing rules besides regularization of the expenditure from competent authority under intimation to Audit.

[AIR Para 2-2008-09 Para 4-2009-10]

1.4.2.2 Unauthorized Execution of Development Schemes - Rs5.331 million

According to Rule 40 (2) of the PDG & TMA (Budget) Rules 2003, the development schemes on which no expenditure has been incurred in the previous year shall be termed as “ New” development schemes and all new schemes can be under taken after obtaining fresh approval of council, administrative approval from TDC, TS from competent authority and tendering process etc.

Tehsil Municipal Officer incurred an expenditure of Rs5.331 million during 2009-10 against 26 development schemes. The said schemes were approved and technically sanctioned during 2008-09 but no expenditure was incurred during the said year. The schemes were required to be approved from

Tehsil Development Committee and with afresh technically sanctioned during 2009-10 which was not done. (Annexure-F)

Non fulfilling of codal formalities resulted in unauthorized incurrence of expenditure. Moreover, the TDC were denied to perform their due role in approval of development portfolio for the FY 2009-10.

In response to audit observation, management replied that all the works were executed at sites. The reply was not tenable as not relevant to the observation.

[AIR Para 8-2009-10]

1.4.2.3 Non recovery of arrears of revenue - Rs4.538 million

According to Rule 76 of PDG and TMA (Budget) Rules 2003, the primary obligation of collecting officer shall be to ensure that all revenue due is claimed, realized and credited immediately into the Local Government Fund under the proper receipt head.

Tehsil Municipal Officer did not recover the outstanding revenue for Rs4.538 million which was pending since long. Most of outstanding arrears pertains to Defunct Tehsil Council and transferred to TMA on devolution. The amount also includes some unadjusted advances to various employees and councilors. The same was not deducted from the pay of employees or honoraria of the councilors as the case may be.

The matter was reported to the TMO during February, 2010. In DAC meeting held on 21.04.2010, Tehsil Municipal Officer replied that the efforts are being made to recover the amount. DAC directed to ensure the recovery as early as possible. No further progress was intimated by the Department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for non recovery of balance revenue from the persons concerned besides recovery of said amount under intimation to Audit.

[AIR Para 3-2008-09]

1.4.2.4 Loss due to Auction of Collection Rights at Unjustified Prices - Rs3.472 million

According to rule 11 of the PLG (Auctioning of Collection Rights) Rules, 2003, the bid received in open auction, if less than the reserved price shall be rejected by the Nazim concerned or the person authorized by him in all cases and contract shall be re-auctioned in the prescribed manner. Moreover, the Council has full powers to accept or reject the bid duly recommended by the Local Government administration for the reasons to be recorded in writing.

Tehsil Municipal Officer awarded the contract to right for collection of immovable property tax at less than the reserved price during 2009-10. Moreover, reserve price for the collection of Cattle Mandi Tax was fixed at less than the actual receipt of the last year, as detailed below, thus causing collective loss of Rs3.472 million:

Tax on Immovable Property (Amount in Rs ) Nature of Lease Reserve price Auction price Loss Immoveable property 7,200,000 6,400,000 800,000 tax

Tax on Cattle Mandi

Nature of Actual Receipt Reserve Price Auction price Loss Lease 2008-09 2009-10 2009-10 Cattle 13,459,174 10,787,000 10,901,000 2,672,174 Mandi 47

Grand Total 3,472,174

Audit held that acceptance of bids at unreasonable prices caused loss to Government.

In response to the audit observation management replied that all the contracts were awarded in transparent manner and with the approval of council. The reply was not accepted as no supporting documentary evidence was produced.

Audit recommends fixation of responsibility and disciplinary action against persons at fault for accepting unjustified bids.

[AIR Para 13-2009-10]

1.4.2.5 Doubtful consumption of electric material without approved indents and acknowledgements - Rs2.684 million

Tehsil Municipal Officer incurred an expenditure of Rs2,683,600 during 2008-09 on account of purchase of electric material. The consumption record along 48 with applications of the public demanding the installation at different spots was not available on the record. The electric material was shown issued without any approved indents, which resulted doubtful consumption.

(Amount in Rupees) V.No Bill Date Paid To Amount 33 2-01-09 Rubi Elec. Store Multan 605,750 34 2-01-09 Rubi Electric 378,000 35 2-01-09 Rubi Electric 740,000 36 2-01-09 Rubi Electric 337,600 32 2-01-09 Rubi Electric 350,250 113 22-01-09 Rubi Electric 272,000 Total 2,683,600

The matter was reported to the TMO during February, 2010. In DAC meeting held on 21.04.2010, Tehsil Municipal Officer replied that detailed record will be produced shortly. DAC directed to provide the detailed record to probed into the matter. No further progress was intimated by the Department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for issuing the stocks without demand and codal formalities.

[AIR Para 4-2008-09]

1.4.2.6 Unauthorized Expenditure on the occasions of 14th August and Moharram-ul-Haram - Rs1.064 million

Tehsil Municipal Officer incurred an expenditure of Rs1.064 million during 2009-10 on occasions of 14th August 2010 and Mohrram-ul-Haraam on the basis of quotations instead of calling tenders as detailed below: 49

(Amount in Rs ) Date of Amount Items payment 14th August 2009 Purchase of sweets, provision of tents, 21.08.2009 350,020 lighting and sound system etc Moharram-ul-Haram a. Hire charges of Generators and electric 07.01.2010 296,702 materials for Moharram ul Haram 18.02.2010 b. Laying of sand on Moharram routes 416,890 Sub Total 713,592 Grand Total 1,063,612

The audit was of the view that incurrence of huge expenditure was unjustified because TMO was required to float open tenders for fair competition. Moreover, the quantities and rates of different items hired were also not documented.

In response to audit observation management replied that all the expenditure was made after approval from the council. The reply was found unsatisfactory because management was required to adhere to all prevailing rules.

Audit recommends fixing of responsibility and disciplinary action against the officer concerned for non adherence of government rules besides regularized the expenditure from competent authority.

[AIR Para 12-2009-10]

1.4.2.7 Doubtful Consumption of Electric Material and Insecticides - Rs1.050 million

According to rule 15.4(a) and 15.5 of the PFR, Vol-I, all materials received should be examined, counted, measured and weighed, as a case may be, when delivery is taken and they should be kept in charge of a responsible Government servant. 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. When materials are issued a written acknowledgement should be obtained from the person to whom they are ordered to be delivered or dispatched and when materials are issued from stock for departmental use, manufacture or sale, etc., the Government servant in charge of the stores should see that an indent in PFR Form 26 has been made by a properly authorized person.

Tehsil Municipal Officer incurred an expenditure of Rs1.050 million during 2009-10 on account of purchase of street lighting material and insecticide, as detailed below, but their consumption record along with public request demanding the installation of street lights and spray at different spots was not available. The lighting material / insecticide were issued without any approved indents.

(Amount in Rs ) Sr. Items Amount No. 1 Electric materials 975,838 2 Insecticides killer 74,000 Total 1,049,838

Issuance of stores items without consumption record resulted in doubtful consumption.

In response to audit observation management replied that matter will be investigated.

Audit recommends investigation of the matter and fixing of responsibility on the officer concerned for issuing the stocks without proper requisition and non maintenance of consumption record.

[AIR Para 6-2009-10]

1.5 Tehsil Municipal Administration Jatoi

1.5.1 Non Production of Record

1.5.1.1 Non Production of Record – Rs25.627 million

Tehsil Municipal Officer incurred expenditure of Rs.25.627 million on account of development work, POL and contingent bills during 2009-10 and 2010-11 but vouched accounts of the same including Tender documents, T.S. Estimates, Measurement books, vouchers, log books, Vehicle Movement record were not produced for audit scrutiny in violation of above rule.

(Rupees in million) AIR Financial Year Para Expenditure head Amount Contingent 2009-10 4 Payment 4.701 -do- 16 -do- 1.828 2010-11 1 Development 16.142 -do- 2 POL 2.956 Total 25.627 Owing to non production of record audit could not verify the authenticity of above expenditure.

Audit recommends fixing of responsibility for non production of record to avoid recurrence of such incidents. Further, management needs to ensure production of record to Audit.

[AIR Paras: 4,16-2009-10 1, 2-2010-11]

1.5.2 Non Compliance of Rules

1.5.2.1 Technical sanction beyond competence - Rs50.001 million

According to Government of Punjab Local Government and Community Development Department notification No.SO-V(LG)5-48/2002 dated 28-03-2006 the power of Tehsil Officer (I&S) of BS-17 was enhanced to one million rupees for the purpose of technical sanction. Further vide Chief Engineer letter No.CE(HQ)PLGB-6/2008 dated 13-05-2008, the scheme beyond the competency of Tehsil Officer (I&S) was required to be forwarded to the Chief Engineer for technical sanction.

Tehsil Municipal Officer got the technical sanction of the estimates for Rs50.001 million from the TO (I&S) instead of competent authority. The officer was competent to accord sanction only up to Rs1 million. So, the sanction of estimates by TO (I&S) was held irregular. (Annexure-G)

The matter was reported to the TMO during February, 2010. The DAC meeting was scheduled on 27.03.2010 but the TMO neither submitted any reply nor produced record for verification. No further progress was intimated by the department till the finalization of this Report in May, 2010.

Audit recommends fixing of responsibility on the officer concerned for violating the standing rules for the TSE from competent authority under intimation to Audit.

[AIR Para 16-2008-09]

1.5.2.2 Payments without Detailed Measurements - Rs17.391 million

Tehsil Municipal Officer incurred an expenditure of Rs17.391 million on account of various development schemes but it was made without mentioning the detail record entries i.e. Earth Work, Sub-base, Edging Base course and TST in 57 measurement book, without which the authenticity/accuracy of expenditure could not ascertained.

(Amount in Rupees) Name of Scheme MB No. Amount Construction of metalled road from nala Bakhi to basti Sajad 83/4682 3765,000 Sikhani, basti Kumharian mouza Khan pur Construction of metalled road from Nala Bukhi to basti Yasin -do- P-79 3,307,000 Sikhani Construction of metalled road from Nala Gul basto Godara to basti -do- 3,431,000 Dr. Ghulam Hussain Badol Construction of metalled road from Dera mian Irshad Hussain to -do- 3,553,000 basti Jafira color wali U/C Binda Ishaq Construction of metalled road from Nala Said Whah /Kapray Khas P-94 3,335,000 to basti Darkhast Total 17,391,000

Due to weak internal controls, detailed record measurement was not entered in the measurement books.

Non recording of entries in the measurement books resulted in irregular expenditure.

Audit recommends fixing of responsibility against the persons at fault besides regularization of expenditure with the sanction of competent authority.

[AIR Para 15-2010-11]

1.5.2.3 Unauthorized Cash Payments - Rs11.533 million

According to Clause 37(1) of Punjab Local Government Accounts Manual, employees shall be paid by direct credit into their bank account and may apply to be paid by cheque.

Tehsil Municipal Officer withdrew the monies through cheques and deposited it into DDO account and later on made manual cash payments

58 amounting to Rs11.533 million to suppliers / contractors and work charge establishment in contravention of above rule, during 2009-10. (Annexure-H)

Audit observed that instead of transfer of funds into DDO account and then making payments, TMO was required to withdraw funds through cheques in favour of employees, suppliers and contractors concerned from Tehsil Accounts Office.

Audit held that cash payments from DDO account to employees and service providers was unauthorized.

In response to audit observation management replied that all the payments were made fairly. Reply was found unsatisfactory as it was not consistent with the audit observation.

The matter was reported to the TMO during February, 2011. The DAC meeting was scheduled on 10.03.2011 but it could not be held. Moreover, TMO neither submitted any reply nor produced record for verification. No further progress was intimated by the Department till the finalization of this Report.

Audit recommends fixing of responsibility on the officer concerned for non complying with the standing rules and instructions besides regularization of the expenditure from competent authority.

[AIR Para 10-2009-10]

1.5.2.4 Non recovery of outstanding revenue - Rs5.507 million

Tehsil Municipal Officer did not recover outstanding arrears of revenues of Rs5.507 million owing to various contractors from 2001-02 to

2008-09 on account of various contracts, against the agreement amount of Rs68.500 million. (Annexure-I)

Audit recommends fixing of responsibility on the officer concerned for non recovery of arrears of revenue from contractor besides recovery of said amount under intimation to Audit.

[AIR Paras: 1, 3-2008-09]

1.5.2.5 Non Recovery of Outstanding Revenue - Rs4.666 million

Tehsil Municipal Officer did not recover arrears of revenues / less recovery amounting to Rs4.666 million pending against different contractors from 2001-02 to 2009-10. (Annexure-J)

Owing to non recovery of lease monies, Government suffered loss in its receipts.

In response to audit observation management replied that notices for immediate recovery had been issued to contractors concerned. Audit stressed early recovery of government dues.

Audit recommends disciplinary action against the officer concerned besides recovery of the outstanding amount.

[AIR Para: 7, 29-2009-10]

1.5.2.6 Unauthorized Payment on Account of Salaries of Contingent Paid Staff – Rs2.650 million

According to Government of Punjab Finance Department letter no. FD.SO (GOOD)44-4/2010 dated 9th August, 2010, no contingent paid staff shall be appointed without obtaining the prior approval of Finance Department.

Tehsil Municipal Officer paid Rs2.650 million on account of pay for contingent paid staff during 2010-11 without approval of Finance Department in violation of above rule.

Due to weak internal controls, the recruitment of contingent paid staff was made without approval of Finance Department.

The expenditure against pay of contingent paid staff without prior approval of Finance Department was resulted in unauthorized payment.

[AIR Para 5-2010-11]

1.5.2.7 Loss due to less realization of revenue from various leases - Rs2.598 million

According to Government of Punjab, Local Government and Rural Development Department Notification No. SOV (LG)5-23/2003 dated 3rd May 2003 for the auctioning of collection rights, the reserve price for an income shall be the average of last preceding three years’ income of the respective local government & if the bid received in open auction is less than the reserve price, shall be rejected by the authorized person and the contract shall be re-auctioned in the prescribed manner.

Tehsil Municipal Officer auctioned various contracts at a price less than the reserve price of preceding three years. Resultantly, Government sustained a loss of Rs2.598 million as detailed below.

(Amount in Rupees) Average Auction Name of Departmental Total of Last Average amount during Contract Collection 2+3 three Loss 2008-09 years 1 2 3 4 5 6 Cattle Mandi Jatoi 2,000,000 330,635 2,330,635 2,505,667 175,032 Adda Stand Jatoi 110,000 Nil 110,000 247,667 137,667 Slaughter Fee 50000 20,830 70,830 89,667 18,837 Immoveable 4,300,000 832,955 5,132,955 7,400,000 2,267,045 Property Tax Total 2,598,581

Audit recommends fixing of responsibility on the officer concerned for less recovery of contract amount under intimation to Audit.

[AIR Para 4-2008-09] 62

1.5.2.8 Unauthorized Expenditure on Culverts and Bridges - Rs2.245 million

According to Section 54 of the PLGO 2001, construction of culverts and cattle ponds do not fall in the functions of TMA.

Tehsil Municipal Officer incurred an expenditure of Rs2.245 million during 2010-2011, as detailed below for construction of six (06) culverts / bridges beyond its functions.

(Rupees in million) Date of S. Estimated Name of work Work Contractor Expenditure No. Cost Order Tariq 1 Const. of bridge Nala Sohni 17-02-11 0.332 0.2988 Hussain 2 Const. of bridge basti Sulaman 17-02-11 M.Sajid 0.332 0.3054 Const. of bridge Nala Moghai 3 17-02-11 M.Sajid 0.332 0.31021 Mauza Kotla Rehmat Ali 4 Const. of bridge Nahar Bakhi 17-02-11 M.Imtiaz 0.719 0.694 Const. of bridge Mauza Bait Tariq 5 17-02-11 0.332 0.322 Sulaman Ratan Diyan Ghazlani Hussain Const. of bridge Mauza Bait Tariq 6 Sulaman Ratan Diyan Ghazlani 17-02-11 0.332 0.3154 Hussain near Basti Gh.Sarwar Total 2.379 2.24581

Weak internal controls caused incurrence of expenditure against the objects which were not fall under the jurisdiction of TMA.

The expenditure incurred against government instructions resulted in unauthorized expenditure.

Audit recommends fixing of responsibility on the officers concerned besides regularization of expenditure.

[AIR Para 27-2010-11]

1.5.2.9 Irregular Adjustment of Earnest Money- Rs1.876 million

According to Government of Punjab, Local Government and Rural Development Department notification No. SOV (LG)5-23/2003 dated 3rd May 2003 chapter-IV 16(4) the earnest money retained as security shall be refunded to the contractor after successful completion of contract and production of a certificate from the head of Revenue Department of respective local government that nothing is due from the contractor and contract has been completed successfully.

Tehsil Municipal Officer awarded various leases during 2009-10 and earnest money received from the contractors amounting to Rs1.876 million was unauthorizedly adjusted in the first installments. (Annexure-K)

Audit held that the amount received against earnest money should have been refunded after completion of lease contract.

Management did not respond to the audit observation.

Audit recommends fixing of responsibility on the officer concerned for adjustment of earnest money in the contractors’ first installment.

[AIR Para 18-2009-10]

1.5.2.10 Incurrence of Expenditure without Calling Tenders – Rs1.749 million

According to Rule 12 (1) of Punjab Public Procurements Rules, 2009 the procurements over one hundred thousand rupees and up to the limit of two million rupees shall be advertised on the PPRA’s website in the manner and format specified by regulation by the PPRA from time to time. These

64 procurement opportunities may also be advertised in print media, if deemed necessary by the procuring agency. Further, according to Para 7 of Punjab Purchase Manual read with Government of the Punjab Notification No. SO/P&C (I&F)-V5/71 dated 18.10.2003, indents of the value exceeding Rs100,000 should be advertised in the press.

Tehsil Municipal Officer incurred an expenditure of Rs1.749 million on account of purchase of various items, as detailed below, during 2009-10, through calling quotations for the values exceeding limit of Rs100,000 in violation of above instructions.

(Amount in Rupees) Cheque No. & Date Description Amount Name of Supplier 68923303 / 21.11.2009 Rent of tent 400,000 M/S Nawaz 68923303 / 21.11.2009 Rent of tent 400,000 M/S Tariq Hussain Purchase of Tyres, 43137184 / 15.09.2009 Repair of Tractors, Hath 948,863 M/S Fayyaz Rehri etc. Total 1,748,863

Audit observed that incurrence of expenditure without tendering process resulted in unfair competition.

In response to audit observation management replied that reply will be submitted shortly.

Audit recommends disciplinary action against the officer concerned for violation of rules and regularization of expenditure from competent authority.

[AIR Para 1-2009-10]

1.5.3 Performance

1.5.3.1 Non utilization of CCB funds - Rs17.500 million

According to Government of the Punjab Local government and community department Lahore letter No. SO.D-III(LF) 3-1/2006 dated 01.01.2006, efforts should be made to utilize 25% development budget earmarked for the Citizen Community Boards, and further according to Rule 64(i)(iv) of PLGO & TMA Budget Rules 2003, each local Government shall effectively and efficiently manage the resources made available to it.

Tehsil Municipal Officer did not utilize the amount of Rs17.500 million earmarked for Citizen Community Board during 2008-09. The populace of the area was deprived of from the benefits of devolution plan.

Audit recommends fixing of responsibility on the officer concerned for negligence and not working for the cause.

[AIR Para 5-2008-09]

ANNEXURES

Annexure-1

(Amount in Rupees) Sr. Para Nature of Formation Title of Para Amount No. No. Observation TMA Unauthorized purchase of Violation of 1. Muzaffargarh 9 generator 550,000 Rule 2008-09 TMA No-imposition of penalty Violation of 2. Muzaffargarh 12 due to late deposit of 144,000 Rule 2008-09 Government receipt Non execution of works TMA within time and non Violation of 3. Muzaffargarh 15 144,240 forfeiting of earnest Rule 2008-09 money TMA Non Recovery of 4. Muzaffargarh 17 Professional Tax 228,000 Recovery 2009-10 TMA Unjustified Purchase of Violation of 5. Muzaffargarh 5 Furniture 856,000 Rule 2010-11 TMA Non Recovery of NOC 6. Muzaffargarh 7 Fee from Petrol Pumps 349,478 Recovery 2010-11 TMA Excess Rate Charged in 7. Muzaffargarh 19 Carriage of Crushed 48,219 Overpayment 2010-11 Stones TMA Non recovery of rent of 8. Kot Addu 2 shops 546,936 Recovery 2008-09 Overpayment due to non TMA adjustment of price 9. Kot Addu 5 50,285 Overpayment variation 2008-09

TMA Loss to Government due 10. Kot Addu 6 to non deduction of rate 165,348 Overpayment 2008-09 of mild steel bars TMA Non Recovery of 11. Kot Addu 12 Professional Tax 50,000 Recovery 2008-09

TMA Non accountal of stores Violation of 12. Kot Addu 19 241,949 Rule 2008-09 TMA Unauthorized retention of Violation of 13. Kot Addu 20 money on account of 302,902 Rule 2008-09 GST deducted at source TMA Non recovery of rent of 14. Kot Addu 2 shops 453,285 Recovery 2009-10 TMA Non Recovery of 15. Kot Addu 13 Professional Tax 133,000 Recovery 2009-10 TMA Ali Pur Uneconomical incurrence Violation of 16. 7 800,000 2008-09 of expenditure Rule TMA Ali Pur Loss due to Non Leasing Violation of 17. 8 264,000 2008-09 of Shops Rule Non recovery of TMA Ali Pur electricity charges from 18. 9 126,328 Recovery 2008-09 NSRC Center

Loss to Government due TMA Ali Pur Violation of 19. 10 to cancellation of contract 117,885 2008-09 Rule

TMA Ali Pur Non recovery of rent of 20. 11 111,752 Recovery 2008-09 shops TMA Ali Pur Non Recovery of 21. 1 181,580 Recovery 2009-10 Outstanding Dues TMA Ali Pur Non recovery of rent of 22. 2 119,825 Recovery 2009-10 shops Incurrence of TMA Ali Pur Violation of 23. 3 Expenditure without 538,447 2009-10 Rule Calling Tender TMA Ali Pur Loss due to Non Leasing Violation of 24. 7 264,000 2009-10 of Shops Rule TMA Ali Pur Non Recovery of 25. 17 195,000 Recovery 2009-10 Professional Tax Non Deposit of General TMA Ali Pur Sales Tax Deducted At Violation of 26. 19 520,270 2009-10 Source Rule

27. TMA Jatoi 2 Non recovery of Adda 110,000 Recovery 70

2008-09 Stand fee TMA Jatoi Unauthorized expenditure Violation of 28. 6 85,000 2008-09 on advertisement Rule TMA Jatoi Non recovery of price 29. 7 226,612 Overpayment 2008-09 variation of bitumen TMA Jatoi Non recovery of 30. 10 45,000 Recovery 2008-09 professional tax TMA Jatoi Award of contract to the Violation of 31. 14 158,000 2008-09 defaulter Rule Loss of revenue due to TMA Jatoi 32. 22 less departmental 263,326 Recovery 2008-09 recovery TMA Jatoi Purchase of stores Violation of 33. 23 229,250 2008-09 without calling tenders Rule TMA Jatoi Non Collection of Mela 34. 2 200,000 Recovery 2009-10 Tax TMA Jatoi Non Recovery of 35. 5 798,573 Recovery 2009-10 Adda/Stand Fee Loss of Revenue due to TMA Jatoi Violation of 36. 11 Decrease in Auction 584,000 2009-10 Rule Money Unjustified Withdrawal TMA Jatoi of Funds against Utility Violation of 37. 12 206,551 2009-10 Bills Rule

TMA Jatoi Non Deduction of 38. 23 144,520 Overpayment 2009-10 General Sales Tax TMA Jatoi Non Recovery of 39. 3 953,160 Recovery 2010-11 Government Revenues Incurrence of TMA Jatoi Violation of 40. 4 Expenditure without 374,990 2010-11 Rule Calling Tenders TMA Jatoi Non Accountal of Stores Violation of 41. 6 286,890 2010-11 Rule TMA Jatoi Less Collection of 42. 9 110,000 Recovery 2010-11 Renewal Fee Loss due to Auction of TMA Jatoi Violation of 43. 12 Collection Rights below 298,000 2010-11 Rule Reserve Price Excess Rate Charged in TMA Jatoi 44. 13 Carriage of Crushed 108,422 Overpayment 2010-11 Stones 71

Annexure-A

MEFDAC PARAS

Sr. Name of Para Subject Amount No. Formation No. Non availability of proof of centrifugal/ sullage 1. 2 700,000 pump to be purchased from Siemens Unjustified payment of Rs. 193,000 resulting 2. 6 57,500 loss TMA Unjustified payment resulting loss to 3. 8 100,000 Muzaffargarh Government 2008-09 Non achievement of receipt targets, expected 4. 11 4.219 loss of Rs. Unauthorized payment of salaries of work charge 5. 14 26,276 establishment 6. 16 Delay in finalization of schemes Rs. 1,039,658 Loss of Rs. 733,473 due to less recovery of 7. 3 733,473 various taxes through self collection. Doubtful expenditure on construction of culverts 8. 7 24.981 without necessary documents 9. 13 Unjustified expenditure worth Rs. 354,700 Payment on account of salaries of work charge 10. 15 7.081 establishment Non maintenance of check measurement books 11. 16 86.659 expenditure incurred Rs. Doubtful payment on account of electricity 12. TMA 17 621,509 charges Kot Addu Estimates technically sanctioned by unauthorized 13. 2008-09 18 61.078 officer 14. 21 Advance payment on account of rent of building 120,000 Unauthorized payment of salaries due to 15. 22 2.836 regularize Ad hoc appointment 16. 23 Overpayment due to change of cadre 452,773 17. 24 Unjustified expenditure on electricity charges 39,786 Unauthorized appointment over and above the 18. 25 120,708 prescribed pay scale overpayment of Rs. 19. 26 Time barred arrears of pay and allowances 65,277 20. 27 Less recovery of renewal fee 37,200 TMA Ali Pur 2.000 21. 5 Unauthorized award of technical sanction 2008-09 million 2.000 22. 6 Unauthorized re-appropriation of funds million 72

Unauthorized payment of to Naib Nazim U/C 23. 12 100,000 Sultanpur 24. 13 Sanction of expenditure beyond competency 99,120 Payment against the quantities in excess of 25. 14 97,482 technical sanction 26. 15 Non accountal of Store 74,052 27. 16 Unauthorized advance payment 75,000 28. 17 Less deduction of GST at source 71,291 2.000 29. 5 Unauthorized award of technical sanction million 2.000 30. 6 Unauthorized re-appropriation of funds million Unauthorized payment of to Naib Nazim U/C 31. 12 100,000 TMA Ali Pur Sultanpur 32. 2008-09 13 Sanction of expenditure beyond competency 99,120 Payment against the quantities in excess of 33. 14 97,482 technical sanction 34. 15 Non accountal of Store 74,052 35. 16 Unauthorized advance payment 75,000 36. 17 Less deduction of GST at source 71,291 37. 8 Non recovery of cost of empty tar drums 84,000 50.001 38. 9 Irregular invitation of tenders millin 39. 11 Loss due to non deduction of the rate of MS bars 24,772 Non maintenance of security deposit register 10.000 40. 12 resulting in doubtful payment of million Loss to Govt. due to non auctioned of cattle 41. 13 82,000 mandi for Rs. 42. 15 Cash payments in violation of rules 1,501,992 TMA Jatoi Unauthorized payment of salaries Rs. 123,541 to 43. 17 1,235,414 2008-09 the employees appointed on Ad hoc basis Unauthorized payment of salary to below age 44. 18 659,687 employee Overpayment due to unauthorized award of 45. 19 56,148 advance increments 46. 20 Overpayment due to wrong fixation of pay 147,052 47. 21 Non deposit/deduction of sales tax invoices Rs. 89037 48. 24 Irregular payment of TA/DA claim Rs. 65,020 49. 25 Doubtful expenditure on entertainment Rs. 70,000 50. 26 Non accountal of Store Rs. 556,483 Purchase of machinery without proof of 1.992 51. 3 specification million TMA Non achievements of receipt targets, expected 22.184 52. Muzaffargarh 7 loss. million 2009-10 Non conducting of post completion evaluation of 137.355 53. 9 development schemes million 73

Non maintenance of check measurement books 138.722 54. 10 expenditure incurred. million Unjustified execution of repair works after lapse 55. 13 450,000 of estimates Execution of works without detailed 5.400 56. 14 measurements million 57. 16 Wasteful expenditure on various works. 25.808 Loss to government due to non deduction of rate 58. 18 49,235 of mild steel bars Unauthorized retention of general sales tax 59. 19 824,783 (GST) deducted at source Unauthorized purchase of vehicle – Rs849,000, 60. 20 344,000 auction of the same resulting into loss. 1.139 61. 5 Non achievement of receipt target Million Non conducting of post completion evaluation of 92.382 62. 9 development schemes Million TMA Unauthorized purchase of vehicle – Rs849,000, 63. Kot Addu 14 344,000 Auction of the same resulting into loss. 2009-10 Non Maintenance Of Check Measurement Books 100.200 64. 15 Expenditure Incurred. Million 1.000 65. 16 Non auction of old material and vehicle. Million Non conducting of post completion evaluation of 66. 9 20.156 development schemes Non achievements of receipt targets, expected 67. 10 35.009 loss Non Maintenance of Check Measurement Books 68. 11 6.800 TMA for development schemes. Alipur2009- Execution of works without detailed 69. 14 1.000 10 measurements 70. 15 Doubtful expenditure on repair 0.544 71. 16 Irregular payment for pending liabilities. 16.251 Unauthorized purchase of vehicle, auction of the 72. 18 0.344 same resulting into loss. 73. 20 Non auction of old material and vehicle. 1.000 Non recovery of house building advances 74. 3 396,500

Award of contract to the defaulter 75. 6 141,750

76. TMA 9 Irregular grant of increments 32,070 77. Jatoi 2009-10 13 Non maintenance of security deposit register 9,183,983 Non utilization of CCB funds 30.000 78. 14 Million 79. 15 Irregular expenditure 11,977,569 80. 17 Non Deposit of Pension Contribution on account 2.248 74

of Tehsil Council Employees Million Irregular invitation of tender 22.235 81. 19 million 82. 20 Non accountal of stores 978,250 Payment without detailed measurements 4.950 83. 21 Million Unauthorized payment due to allowing higher 84. 22 157,171 rate Overpayment due to unauthorized award of 85. 24 15,590 advance increments 86. 25 Overpayment due to wrong fixation of pay 26,680 Irregular promotion from chowkidar to junior 87. 26 199,896 clerk 88. 27 Non deduction of income tax 28,000 Irregular payment without revision of technically 89. 28 9,685,000 sanctioned estimates 90. 30 Expenditure without completion certificate 9,183,983 91. 31 Non maintenance of check measurement books 42,386,000 92. 32 Unauthorized retention of government money 147,900 Incurrence of expenditure and execution of work 27.501 93. 33 without soil survey Million 94. 34 Non utilization of fund of ADP 75,000,000 Unauthorized Drawl Of House Rent Allowance 95. 3 62,064 Recovery 96. 10 Non deduction of surcharge on income tax – 61,929 Non Recovery of Commercialization / building 97. 11 50,765 fee Non recovery of commercialization fees, 98. 12 270,000 Expected Loss of 99. 13 Unjustified excessive expenditure of POL 6.8 million 100. 14 Unauthorized Purchase worth 3,494,388 Unauthorized expenditure on purchase of 9.019 101. 15 stationery, Machinery and Equipments million TMA Loss to govt. due to purchase of POL at higher 102. Muzaffargarh 16 192,685 rates than the rates fixed by OGRA – 2010-11 103. 17 Unjustified tendering worth 117 million 104. 18 Less recovery of dismantled material cost 85,912 Doubtful payment of work done without dates of 105. 20 1,511,707 measurements record entries, and billings worth Non Imposition of Penalty due to Delay in 106. 22 319,200 Completion of Schemes Overpayment of due to non adjustment of 107. 23 15,280 available earth. Non Production of Receipt Record regarding 108. 24 Rent of Shops, Chances of misappropriation 109. 26 Unjustified replacement of electric motors 1,119,253 75

110. 27 Doubtful expenditure on repair 1,208,910 111. 28 Uneconomic Purchase 8,134,915 Excess Payment Due To Un Necessary Items In 112. 29 367,558 The Rate Analysis Of Tuff Tile 113. 30 Unjustified payment of arrears of wages worth 3,667,746 114. 31 Non auction of old material 300,000 Unjustified Utilization of Tehsiel Fund during 115. 32 flood, Delay in reimbursement from Provincial 437,323 Government Non conducting of post completion evaluation of 154.042 116. 33 development schemes million Unauthorized expenditure on culverts and 117. 34 5.04 millions bridges 9.147 118. 7 Unauthorized Cash Payments Million 119. 10 Non collection of professional tax 55000 8.206 120. 11 Payment of Income Tax without reconciliation million Doubtful payment of work done without dates of 121. 14 1,0749,000 measurements record entries, and billings worth 122. 16 Overpayment due to less deduction of road crust 44,686 Overpayment due to charging excess the 123. 17 10,500 schedule rate Overpayment due allowing unjustified rate of 124. 18 252,000 tuff tiles 125. 19 Overpayment due to excessive measurement 35,743 Overpayment due to non adjustment of available 126. 20 29,439 earth 127. 21 Overpayment due to non deduction of shrinkage 50,719 TMA Jatoi 128. 22 Non recovery of house building advance 360,000 2010-11 Non Imposition of Penalty due to Delay in 0.2379 129. 23 Completion of Schemes million 68.316 130. 24 Drawls without proof of authenticity million Overpayment Due To Non Deduction Of 131. 25 18,493 Surcharge On Income Tax Non cancellation of contract of Immoveable 132. 26 10,090,500 property Tax Non conducting of post completion evaluation of 46.32 133. 28 development schemes million Non fixation of receipt targets, Chances of 134. 29 Misappropriation of receipts 40.000 135. 30 Irregular tendering million Doubtful payment of work done without dates of 43.365 136. 31 measurements record entries, and billings million 76

Annexure-B TMAs of Muzaffargarh District Budget and Expenditure Statement for Financial Years 2008-2011 1. TMA, Muzaffargarh Budget and Expenditure details for the FY 2008-09

(Rs in Million) Head Budget Expenditure Excess / Savings %age Comments Salary 42.425 39.843 2.582 6.09 Non Salary 38.866 36.779 2.087 5.37 Development 340.000 199.740 140.260 41.25 Revenue 262.088 248.596 13.492 5.15 Total 683.379 524.958 158.421

Financial Year 2009-2010 Head Budget Expenditure Excess / Savings %age Comments Salary 85.851 80.655 5.196 6.05 Non Salary 18.891 17.841 1.050 5.56 Development 216.100 138.722 77.378 35.81 Revenue 0 0 0

Total 320.842 237.218 83.624

Financial Year 2010-2011 Head Budget Expenditure Excess / Savings %age Comments Salary 74.315 71.956 2.359 3.17 Non Salary 108.344 105.536 2.808 2.59 Development 250.785 117.323 133.462 53.22 Revenue Total 433.444 294.815 138.629 2. TMA, Kot Addu Budget and Expenditure details for the FY 2008-09 Head Budget Expenditure Excess / Savings %age Comments Salary 50.113 47.247 2.866 5.72 Non Salary 18.396 12.641 5.755 31.28 Development 129.748 43.717 86.031 66.31 Revenue 215.580 191.727 23.853 11.06 Total 413.837 295.332 118.505 Financial Year 2009-2010 Head Budget Expenditure Excess / Savings %age Comments Salary 54.413 52.258 2.155 3.96 Non Salary 21.197 19.854 1.343 6.34 Development 136.562 86.214 50.348 36.87

Revenue Total 212.172 158.326 53.846 3. TMA, Alipur Budget and Expenditure details for the FY 2008-09 Head Budget Expenditure Excess / Savings %age Comments Salary 30.262 29.670 0.592 1.96 Non Salary 15.900 14.796 1.104 6.94 Development 72.155 46.307 25.848 35.82 Revenue 114.477 92.758 21.719 18.97 Total 232.794 183.531 49.263 Financial Year 2009-2010 Head Budget Expenditure Excess / Savings %age Comments Salary 25.642 24.325 1.317 5.14 Non Salary 34.641 31.565 3.076 8.88 Development 57.344 32.610 24.734 43.13 Revenue 119.370 80.905 38.465 32.22 Total 236.997 169.405 67.592 4. TMA, Jatoi Budget and Expenditure details for the FY 2008-09 Head Budget Expenditure Excess / Savings %age Comments Salary 46.444 43.444 3.000 6.46 Non Salary 10.302 9.301 1.001 9.72 Development 104.940 65.426 39.514 37.65 Revenue 155.061 112.231 42.830 27.62 Total 316.747 230.402 86.345 Financial Year 2009-10 Head Budget Expenditure Excess / Savings %age Comments Salary 29.820 28.115 1.705 5.72 Non Salary 74.800 72.582 2.218 2.97 Development 75.000 45.545 29.455 39.27 Revenue 175.155 Total 354.775 146.242 33.378 Financial Year 2010-11 Head Budget Expenditure Excess / Savings %age Comments Salary 40.000 34.000 6.000 15.00 Non Salary 15.000 14.000 1.000 6.67 Development 85.000 71.128 13.872 16.32 Revenue Total 140.00 119.128 20.872

Annexure-C [Para 1.2.2.1] DETAIL OF UNAUTHORIZED EXECUTION OF DEVELOPMENT SCHEMES

(Rs in million) Sr. Approved Name of Scheme No Cost 1. Construction of Bridge Over Doaba Minor, Alipur Minor as proposed by Naib 0.230 Nazim Murad Abad. 2. Construction of Bridge Over Nala Shah Nawaz Near Chah Sheereen Wala 0.170 Mauza Mubarak Pur , Jagat Pur 3. Construction of Bridge Over Nala Ameer Minor as proposed by Naib Naz U/C 0.130 Ghazanfar Garh 4. Construction of Bridge Over Nala Umar Wah Near Basti Sonay Wala U/C 0.075 Ghazanfar Garh 5. Construction of Culverts Over Khala Jaat Androon Hudood Union Council 0.200 Utra Sandila 6. Construction of 6 Nos. Laterine, Waiting Rooms Darbar Peer Mohib Jahanian 0.400 U/C Nohan Wali 7. Construction of Pulli Cross Flood Bund Chah Pai Wala Mauza Thattha 0.320 Qureshi 8. Construction of Bridge over Taliri Canal near house Muhammad Shabbir Nole 0.350 Mauza Umarpur Janubi 9. Construction of Boundary Wall /Laying of Grill Earth Filling Repair Fountain 0.200 Nasir Park (Renovation) Muzaffargarh.

10. Construction of Drains / Brick Pavement / Laying of PCC / Tuff Tiles & 0.500 Constt: of Culverts Chah Baggay Wala, Qazi Wala, Pipal Wala, Qayyum Nagar, Hayat Nagar, Bilal Colony, Mitthu Wala, Tankey Bagh, Haider Shah Wala, Bitharay Wala, Lotay Wala, Basti Moharan, Lutkaran, Ward No:2 as proposed by Tehsil Nazim Sahib. 11. Construction of Bridge over Rajpah Dera Fazal U/C Chack Farazi 0.200 12. Earth Filling / Soling /Culverts Mauza Fateh Muhammad Ambreed U/C 0.050 Danreen 13. Construction of Soling Road from Mettled Road Talab Wala to Dera Dera 0.143 Mian Gh Rasool Makwal 14. Construction of Drain / Soling Street Akbar Shah wali U/C 34 0.250 15. Construction of Drain / Laying of PCC / RCC Slab / Iron Girder Street from 0.115 Girls College to House Gh. Rasool Makwal Mhuallah Bukhariwala 16. Construction of Nala/ Slab from House Mian Abbas Qureshi to Canal Office 0.185 Alipur road 17. Construction of Drain / Soling Street Qari Atta Ullah Dr.Nizam, Thanay Wali, 0.510 Haji Yousaf Hakim Maolvi Ghafoor U/C Shah Jamal 18. Construction of Drain / Soling Street Gh Hussain near sabzi Mandi, M.Tariq , 0.490 Sher Muhammad Taili, Nazar Counciler U/C Shah Jamal 19. Construction Bridge over Nala Barnam near Basti Mandhwani (Hafiz Ahmad 0.186 Bux) U/C Utra Sandila 20. Construction of Slab over Nala Basti nai Wala U/C Danreen 0.160 21. Construction of Culverts over Khala Jaat Androon Hadood U/C Danreen 0.300 79

22. Construction / Providing / Fixing Tuff Tiles / PCC / Drains / Soling / Earth 1.00 Filling / Iron Girder Crossing / Slab Ward No:6,7,8,11,12,13 Ghous Colony Rawlay Wala Qaim Wala Baloch Nagar Roshan Green View Kotwal Wala Mohallah Abbasia Basti Bhuttian, Toonty Wala U/C 36 23. Earth Filling / Laying of Soling Ahmad Mohana Road at Sultan Diesel 0.150 Agency U/C Ahmad Mohana 24. Construction of Bridge Over Nala Kaloo as proposed by Naib Nazim Karam 0.150 Dad Qureshi 25. Construction of Drains / Soling Water Way Androon Hudood U/C Karam Dad 0.300 Qureshi 26. Construction of Drains / Soling Mawaziaat Androon Hudood U/C Karam Dad 0.250 Qureshi 27. Construction of Culverts over Khala Jaat Androon Hudood U/C Taliri 0.100 28. Construction of Drains / Nala / Repair of Mettled Road Remaining Part from 0.250 Chowk Tabakhian to Water Purification Plant U/C No:34 29. Construction of Drains / Soling Basti Ismail Sukhaira Mouza Sadey Wahan 0.200 U/C Thatha Qureshi 30. Construction of Sulage Carrier Ada Wasinday Wali U/C ghazanfar Garh C/o 0.100 Malik Naseer Solar 31. Construction of Culverts over Khala Jaat Androon Hadood Mauza Dareen 0.400 Qaim Shah Basti Arbi, U/C Danreen 32. Construction of Soling Basti Gopang Pilli Khuh Danreen 0.120 33. Construction of Drain / Soling Street Master Khalil, Khuda Bux etc 0.100 34. Construction of Drain / Soling Basti Kabir wala M/R Seerwala to Shumali 0.250 canal Basti Bhuta, Mori Bahar Shah to Basti Katchi wala 35. Construction of Culverts over khala jaat Androon hadood U/C Danreen 0.150 36. Construction of Soling / Sewerage Guligreeting, Tank machinery Basti 0.680 Makwal U/C Utra Sandila 37. Construction of Soling Basti Utra, Basti Mian Gh Abbas, Basti Rana Abduk 0.130 Rahamn, Bastiufi Abdul Khaliq Utra U/C Utra Sandila 38. Construction of Drain / Soling Basti Tahli wala & graveyard 0.400 39. Construction of Culverts over khala jaat Androon Hadood U/C Wan Pitafi 0.200 40. Construction of Drain / Soling Basti Jalal Abad U/C Jagat Pur 0.050 41. Construction of Drain / Tuff Tile street Prof. Zahid Kamran near Ice Factory 0.150 U/C 37 42. Construction of Tuff Tile Mohallah Abbasia U/C 36 0.050 43. Construction of Drain soling culverts C/o Abdullah Langrial U/C Manak Pur 0.500 44. Const: Sewerage inter connection manhole pump house U/C Shah Jamal 1.400 45. Const Soling Basti Katchi Wala (Gh Hussain Khichi 0.400 46. Const of Soling Drain from nala jhandir to basti nalay wala 0.300 47. Construction of Drains / Laying of Soling / Filling of Earth / Fixing of Iron 0.300 Girder Crossing Galli Ameer Nawaz Wali Union Council No:34 Basti Moharan Muzaffargarh 48. Construction of Room alongwith Bathroom Androon Tankey Bagh for 0.125 Chowkidar TMA Muzaffargarh 49. Providing / Fixing Pumping Machinery 4”x5” Local Made alongwith 15 BHP 0.435 Electric Motor, Inter Connection, Delivery Pipe, main Switch Board alongwith Foundation Stair Step, Railing Near Nala Ganesh Wah Muzaffargarh 50. Repair of Residence of Tehsil Officer (Planning and Coordination) TMA 0.200 Muzaffargarh 51. Construction of Drains /Laying of Tuff Tiles Galli Muhammad Afzal Union 0.500 Council No:36 52. Const ruction of Drains /Laying of Soling Basti Choonian Union Council 0.150 Bhuttapur Total 18.654

Annexure-D

[Para 1.2.2.3] DETAIL OF UNAUTHORIZED EXPENDITURE ON WORKS (Rs in million) Sr. Approved Name of Scheme No Cost 1 Construction of Culverts over Khala Jaat Androon Hudood Union Council 0.300 Rangpur as proposed by Naib Nazim. 2 Construction of Culverts Over Khala Jaat Androon Hudood Ghazanfar Garh 0.300 3 Construction of Culverts Over Khala Jaat Androon Hudood Union Council 0.340 Mahra 4 Construction of Bridge over Nala Rajbah near Basti Bappar Wala U/C Utra 0.145 Sandila 5 Construction of 4 Nos. Bridges Over Nala Ghhattu Right, Ghhattu Left as 0.400 proposed by Malik Liaqat Dona 6 Construction of Culverts Over Khala Jaat Androon Hudood Union Council 0.300 Nohan Wali 7 Construction of Bridge over Nala Thal along with 3 Nos. Culverts over Khala Jaat Androon Hudood Union Council Basira as proposed by Naib 0.200 Nazim 8 Construction of Culverts Over Khala Jaat Androon Hudood Union Council 0.500 Gul Wala 9 Construction of Culverts Over Khala Jaat Androon Hudood U/C Jagat Pur 0.100 as proposed by Tehsil Nazim Sahib 10 Construction of Culverts over Khala Jaat Androon Hudood Mauza Daira 0.150 Waddhu U/C Ghazanfar Garh 11 Construction of Bridge over Nala Mondka near Mondka 0.165 12 Construction of Culverts over Khala Jaat Andron Hadood U/C KD Qureshi 0.100 13 Construction of Culverts over Khala Jaat Andron Hadood U/C Bhuta Pur 0.200 14 Construction of Culverts over Khala Jaat Andron Hadood U/C Gul Wala 0.150 15 Construction of Culverts Mauza Jhanger, Taror, Khaila, U/C Utra Sandila 0.300 16 Construction of Culverts over Khala Jaat Androon Hadood U/C Danreen 0.300 17 Construction of Culverts over Khala Jaat Androon hadood U/C Manka 0.200 Bhutta 18 Construction of Culverts Mauza Kandhi Balochan U/C Aludaywali 0.125 19 Construction of Bridge over Nala Doaba /Ali pur Minor U/C Muradbad 0.280 20 Construction of Culverts Over Khalajaat Androon Hudood U/C Sharief 0.300 Chhajra as proposed by Naib Nazim Sharief Chhajra 21 Construction of 1 No. Bridge Over Nala Ghhattu Left Mauza Nooran 0.150 Abrind as proposed by Naib Nazim Sharief Chhajra 22 Construction of Culverts Over Khala Jaat Androon Hudood U/C Karam 0.300 Dad Queshi as proposed by Naib Nazim 23 Construction of Culverts over Khala Jaat Androon Hudood U/C Gul Wala 0.100 as proposed by Malik Abdul Rasheed Khan Councilor Gul Wala 24 Construction of 2 Nos. Culverts Androon Hudood U/C Gul Wala as 0.040 proposed by Malik Abdul Rasheed Kalroo Councilor Gul Wala 25 Construction of Culverts over Khala Jaat Androon Hudood U/C Gul Wala 0.500 81

26 Construction of Culverts Over Khala Jaat Androon Hudood U/C Jagat Pur 0.100 27 Construction of Culverts over Khala Jaat Androon Hudood U/C Gul Wala 0.100 28 Construction of Culverts over Khala Jaat Androon Hudood U/C Murad 0.100 Abad 29 Construction of Brigde over Nala Saim Basti Ditan Wali U/C Gairay Wain 0.150 30 Construction of Culverts over Khala jaat Mauza Bait Qaim Shah Danreen 0.200 31 Construction of Culverts over Khala Jaat U/c Dareen and Mahrah 0.120 32 Construction of Culverts over khala jaat mauza Aluday wali 0.175 33 Construction of Culverts over khala jaat U/C Aluday wa 0.200 34 Construction of Culverts over khala jaat mauza Mahra Gharbi 0.100 35 Construction of Bridge over nala Shira Basti Mian Rab Nawaz 0.170 36 Construction of Culverts over khala jaat U/C Rohilanwali 0.300 37 Construction of Culverts over hala Jaat U/C Ganag 0.100 38 Construction of Bridge over nala Haji Wah U/C Thatha Qureshi 0.300 39 Construction of Culverts Mauza Khichi Wla U/C Manka Bhutta 0.300 40 Construction of Bridge over Nala Bhandai Basti Bhanday wali Construction 0.140 of Culvert 41 Construction of 15 culverts U/C Manak Pur Utra 0.370 Total 8.87

Annexure-E [Para 1.3.2.7] DETAIL OF DOUBTFUL CONSUMPTION OF POL DUE TO NON PRODUCTION OF LOG BOOKS

(Amount in Rupees) V. No Date Disc Amount 35 7/8/2008 Diesel for Disposal Kot Addu 21,900 101 8/8/2008 Diesel Tractor DDPanah 18,520 102 -do- M/Oil DDP 2,810 103 -do- Tractors CSS 29,600 104 -do- M/Oil CSS 4,190 106 9/8/2008 Diesel Tractor Kadu 179,210 107 -do- M/Oil Kadu 5,360 108 -do- Diesel Pumps 5,700 109 -do- M/Oil 2,070 159 -do- Diesel Tractor D.D. Panah 23,670 209 20-09-08 Tractor CSS 31,440 29 6/9/2008 Diesel for Trac K Adu 154,770 30 -do- Diesel for Disposal K Addu 9,900 12 18-11-08 Tractor CSS 34,300 14 -do- Do 35,000 19 20-11-08 Diesel for Trac K Adu 156,520 107 20-12-08 Do 131,395 108 -do- DDP 27,105 34 -do- Kot Adu 172,542 44 -do- CCS 30,300 127 -do- DDP 24,980 100 25-02-09 Kot Adu 140,400 101 -do- DDP 25,520 29 9/3/2009 CCS 28,415 31 -do- Do 27,840 199 24-03-09 Kot Adu 133,087 120 17-04-09 DDP 25,900 142 -do- CSS 29,580 37 16-05-09 DDP 25,520 39 -do- CSS 31,900 43 -do- Kot Adu 147,420 48 -do- Do 45,495 92 -95 13-06-09 Kot Adu 151,025 96 -do- DDP 25,360 98 -do- CCS 32,537 Total 1,971,281

Annexure-F [Para 1.4.2.2]

DETAIL OF UNAUTHORIZED EXECUTION OF DEVELOPMENT SCHEMES (Amount in Rs ) Expenditur Sr. Approved e during No Name of Scheme Cost 2009-10 1 Repair of metalled road basti bosan to muradpur janobi 800,000 135,660 Construction of nali PCC flooring Altaf Mastoi Rajpoot Colony Ali 2 400,000 400,000 pur Construction of nali Soling Dokan jugi Bhutt to ghar Manzoor 3 1,000,000 175,622 Hussain Construction of metalled road NawaDeera to police Chowk 4 700,000 101,000 Suleman Nahar super No.4 Murad pur janobi 5 Construction of metalled road Sadique Bosan To basti fareed bosan 500,000 189,600 Construction of metalled road Nawa Deera to police Chowk 6 700,000 135,000 Suleman Nahar super No.4 Murad pur janobi Construction of metalled road malik fazil Bosan to basti Allah 7 500,000 123,445 Bukhsh Bosan Construction of nali soling gali mian Qasim tatari to ghar Haji 8 1,000,000 159,000 Ahmad U/C Alipur Repair of metalled road Chowk FidaHussain Gopang Mouza Bait 9 800,000 132,550 Bagh Shah U/C Muradpur Janobi Construction of metalled road Allah Bukhsh bosan to sadique 10 500,000 109,200 bosaan 11 Construction of soling basti palwan arian part-ii 400,000 400,000 12 Construction of soling basti Fazal arian part-ii 300,000 300,000 13 Construction of nali and soling basti nabi pur mouza nabi pur 500,000 500,000 14 Construction of nali Mohla Qazi Akram Near Stadium Alipur 500,000 500,000 15 Construction nali soling remaining part Sultan pur 500,000 500,000 16 Construction of soling Basti Fazal Arian part-i 500,000 120,100 17 Construction of soling Khair pur ropad to Muhammad Ajmal House 500,000 119,655 18 metalled road from super No.4 to basti sujrai muradpur5 janobi 600,000 125,632 19 Construction of nali/soling Basti Rand Mouza kotal afghan 500,000 150,000 Construction of soling/nali Ghulam Haider Bhutta to dokan jugi 20 1,000,000 122,675 bhut U/C Alipur 21 Repair M/R Bait bagh Shah U/C Murad pur janobi 942,000 171,558 22 Construction of naliBhutta chowk to Khalid kulachi house 400,000 100,500 23 Construction of nali/soling Tika Khan mohla kotanay U/C Alipur 400,000 130,000 24 Construction of soling M/R merani U/C Murad pur Janobi 450000 122,000 25 Construction of soling Khairpur bypass to Muhammad Ajmal House 500,000 117,553 26 Construction of nali Street Hafiz Fiaz Hussain Gopang 600,000 190,625 Total 15,492,000 5,331,375

Annexure-G

[Para 1.5.2.1]

DETAIL OF ESTIMATES TECHNICALLY SANCTIONED BY UNAUTHORIZED OFFICER (Amount in Rupees) Sr. No Name of Work Amount 1 Const. of metaled road from Ali pur pul to Sumandari Leghari 3750000 2 Const. of metaled road nala Noor Wah to basti Haji Rashim Khan 2500000 3 Const. of metaled road from Ali Pur M. Garh road to Haji Ghulam Qadir Ghabool 1250000 4 Const. of metaled road from Shamas Cotton factory to basti Dirkhan 2500000 5 Const. of metaled road from Ghlarain Jatoi sher to to basti Bilal Chagra 2500000 6 Const. of metaled road from Faiz Pur to basti Mehar Aziz 2500000 7 Const. of metaled road from Faiz pu to Basti Ara 1250000 8 Const. of metaled road from Sher Sultan to Super Bund 3751000 9 Const. of metaled road from mouza Murad pur shumali 2500000 10 Const. of metaled road from Massu Wah Faiz pur road to Basti Sharif Sandila 2500000 11 Const. of metaled road from basti Arif to basti Ghulam Qadir 3750000 12 Const. of metaled road Mughal Puree basti Lonach 3750000 13 Const. of metaled road from Nala Ghul Wah to basti Kamil Khan 2500000 14 Const. of metaled road basti Arif Jatoi Sher Sultan 2500000 15 Const. of metaled road Paree Nala Punuu Part-II 2500000 16 Const. of metaled road Parmit Jatoi to Basti Jaskani 2500000 17 Const. of metaled road mouza Khanu wala Part-II 2500000 18 Const. of metaled road cheena malana Lundai Pitafi to basti Fida Hussain 1250000 19 Const. of metaled road Ali pur branch to Nala qatab puree 1250000 20 Const. of metaled road Massu Shah Faiz Pur road to Qabaristan biloo sindela 2500000 Total 50,001,000

Annexure-H [Para 1.5.2.4]

DETAIL OF UNAUTHORIZED CASH PAYMENTS (Amount in Rs.) Date Cheque No. Amount Date Cheque No. Amount 09.07.10 93078611 148,274 19.12.09 68504882 273,113 09.07.10 93078612 178,102 07.01.10 68814311 233,148 10.07.10 93078614 427,378 07.01.10 68814316 270,382 11.07.10 93078613 98,472 07.01.10 68814313 148,274 18.07.10 93078615 23,240 07.01.10 68814312 170,079 22.07.10 93078657 24,500 06.02.10 68814337 165,718 23.07.10 93078659 139,441 06.02.10 68814341 34,000 31.07.10 93078660 43,610 06.02.10 68814338 148,274 03.08.09 55367680 71,400 06.02.10 68814339 222,426 04.08.09 55367687 87,290 06.02.10 68814336 116,688 06.08.09 55367688 121,310 08.02.10 68814340 261,660 06.08.09 55367689 266,021 25.10.10 68814325 20,000 06.08.09 55367691 419,009 15.02.10 68814353 26,357 06.08.09 55367690 165,718 02.03.10 68814367 198,900 10.08.09 55367696 100,000 02.03.10 68814363 266,021 10.08.09 55367698 148,274 02.03.10 68814369 165,718 21.08.09 55367700 117,739 04.03.10 68814370 30,500 15.09.09 68504819 206,822 26.03.10 68814391 69,250 15.09.09 68504816 116,688 01.04.10 68814392 147,675 -do- 68504817 270,382 03.04.10 68814395 203,254 -do- 68504818 165,718 03.04.10 68814398 266,021 -do- 68504822 148,274 04.05.10 69364519 185,419 10.10.09 68504835 165,718 04.05.10 69364520 206,392 10.10.09 68504838 626,431 04.05.10 69364513 59,864 10.10.09 68504837 250,000 04.05.10 69364512 212,963 10.10.09 68504826 498,586 01.06.10 69364526 171,500 23.11.09 68504855 115,658 22.06.10 70118714 100,600 23.11.09 68504856 1,309,534 22.06.10 70118713 69,322 23.11.09 68504863 148,274 22.06.10 70118715 317,829 19.12.09 68504883 170,079 Total 11,533,289

Annexure-I [Para 1.5.2.5] DETAIL OF NON RECOVERY OF PENDING REVENUES (Amount in Rupees) Sr. Year Amount No. 1 2001-02 337231 2 2002-03 601888 3 2003-04 823660 4 2004-05 668510 5 2005-06 139910 6 2006-07 215370 7 2007-08 1034620 8 2008-09 843,240 Total 4,664,429 (Amount in Rupees) Sr. Name of Contract/Fees Contract Auctione Recovery Less No. d amount Made Recovery 1 Adda Fee unit Sher Sohail Babar S/O 462000 187060 274,940 Sultan Shah Din 2 Slaughter Fee Muhammad Tariq 50000 4500 45,500 S/O Ameer Bux 3 Dangerous License Fee Mukhtar Ahmad 501000 296000 205,000 4 License Fee of Vehicles Hazoor Bux S/O 145000 12200 132,800 Abdullah Khan 5 Advertisement Fee Muhammad Sadiq 186000 1000 185,000 S/O Ghulam Rasool Total 843,240

Annexure-J [Para 1.5.2.6]

DETAIL OF NON RECOVERY OF OUTSTANDING REVENUE (Amount in Rs) Sr. Recovery No. Year Name of Contractor Type of Tax Amount Abdul Latif S/O Hazoor 1 2001-02 Buksh, Ghazlani Toll Tax 115,760 Muhammad Younas S/O 2 -do- Abdul Ghafar, Immoveable property tax 43,331 3 -do- Fazal Hussain S/O Karam Ali Saloughter Fee 12,535 Muhammad Younas S/O 4 -do- Abdul Ghafar, Teh Bazari Fee 131,410 Fazal Hussain S/O Karam Ali 5 -do- Building Fee 2,390 Abdul Ghafar S/O 6 -do- Muhammad Sadiq Patan Shah Pur 18,925 Ijaz Hussain S/O Muhammad 7 -do- Sadiq Patan Binda Ishaq 12,880 Jamil Ahmad S/O Khalil 1 2002-03 Ahmad Toll Tax 128,790 Muhammad Hussain S/O 2 -do- Shamshad Ali Teh Bazari Fee 51,538 Jamil Ahmad S/O Khalil 3 -do- Ahmad Adda Stand Fee 127,980 Manzoor Ahmad S/o Rasool 4 -do- Bukhsh Saloughter Fee 7,300 Muhammad Amja S/O 5 -do- Ghulam Muhammad License Fee Dangerous 40,000 Mujahid Hussain S/O Ashiq 6 -do- Hussain Vehicle Fee 15,000 Muhammad Amja S/O 7 -do- Ghulam Muhammad License Fee Dangerous 130,000 Sajjad Hussain S/O Khadim 8 -do- Hussain Patan Shah Pur 54,900 Munawar Hussain S/O Allah 9 -do- Wasya Patan Binda Ishaq 42,380 Abdul Hakim S/O Karim 10 -do- Bukhsh Building Fee 4,000 Abdul Rasheed S/O 1 2003-04 Muhammad Bashir Adda Stand Jatoi 72,000 Muhammad Yaqoob S/O 2 -do- Abdul Raoof Teh Bazari Fee 62,000 Ghulam Abbas S/O Gul 3 -do- Muhammad Vehicle Fee 10,000 Abdul Rasheed S/O 4 -do- Muhammad Bashir Adda Stand Shehr Sultan 05,000 Muhammad Yaqoob S/O 5 -do- Abdul Raoof Teh Bazari Fee 54,400 Dalawar Hussain S/O Faqeer 6 -do- Muhammad Sloughter Fee 14,260 Nazir Ahmad S/O Jan 7 -do- Muhammad Sloughter Fee 6,000

Rana Muhammad Ishaq S/O 1 2004-05 Jamil Ahmad Adda Stand Fee Jatoi 58,000 Ikhlaq Ahmad S/O Khurshid 2 -do- Ahmad Adda Stand Shehr Sultan 133,400 Rana Muhammad Ishaq S/O 3 -do- Jamil Ahmad Teh Bazari Fee Jatoi 316,000 Ikhlaq Ahmad S/O Khurshid 4 -do- Ahmad Teh Bazari Fee Shehr Sultan 61,110 Muhammad Iqbal S/O 1 2005-06 Muhammad Rafiq Adda Stand Fee Jatoi 44,000 Muhammad Iqbal S/O 2 -do- Muhammad Rafiq Teh Bazari Fee Jatoi 95,910 Shahid Iqbal S/O Ghulam 1 2006-07 Qadir Adda Stand Shehr Sultan 22,000 Zia Qasim S/O Dilwar 2 -do- Hussain Teh Bazari Fee Jatoi 169,000 Shahid Iqbal S/O Ghulam 3 -do- Qadir Teh Bazari Fee Shehr Sultan 7,000 Muhammad Tariq S/O Ameer 4 -do- Bukhsh Sloughter Fee 17,370 Muhammad Tariq S/O Ameer 1 2007-08 Bukhsh Adda Stand Fee Jatoi 135,420 Zia Qasim S/O Dilwar 2 -do- Hussain Adda Stand Shehr Sultan 143,440 Zia Qasim S/O Dilwar 3 -do- Hussain Teh Bazari Fee Jatoi 304,260 Zia Qasim S/O Dilwar 4 -do- Hussain Teh Bazari Fee Shehr Sultan 126,290 Zia Qasim S/O Dilwar 5 -do- Hussain Sloughter Fee Jatoi 30,110 Muhammad Sadiq S/O 6 -do- Ghulam Rasool Building Fee jatoi 15,700 Shahid Iqbal S/O Ghulam 7 -do- Qadir Dangerous Trade 184,400 Zia Qasim S/O Dilwar 8 -do- Hussain Vehicle License Fee 95,000 Muhammad Tariq S/O Ameer 1 2008-09 Bukhsh Adda Stand Fee Jatoi 97,000

2 -do- Sohail Babar S/O Shah Din Adda Stand Shehr Sultan 274,940 Muhammad Tariq S/O Ameer 3 -do- Bukhsh Slaughter Fee Jatoi 45,500 Mukhtar Ahmad S/O Peer 4 -do- Bukhsh Dangerous Trade 205,000 Hazoor Bukhsh S/O Abdullah 5 -do- Khan Vehicle License Fee 96,550 Muhammad Yaseen S/O M. 1 2009-10 Ramzan Slaughter Fee 26470 Muhammad Aslam S/O 2 -do- Umeed Ali Professional Fee 49250 Muhammad Sadiq S/O 3 -do- Ghulam Rasool Buildings Fee 46,950 Tariq Hussain S/O Khuda 4 -do- Bukhsh Motor Cycle Mandi 3550

Total 4,666,399

Annexure-K

[Para 1.5.2.10]

DETAIL OF IRREGULAR ADJUSTMENT OF EARNEST MONEY (Amount in Rs.) Earnest Name of Leasee Name of Contractor Money Cattle Mandi Jatoi Amnad Ali S/O Rehmat Ali 500,000 Immoveable Property Tax Muhammad Riaz S/O Dost Muhammad 1,200,000 Adda Fee unit Jatoi Tariq Hussain S/O Khuda Bukhsh 9,000 Adda Fee unit Sher Sultan Tariq Hussain S/O Khuda Bukhsh 23,000 Slaughter Fee Jatoi Muhammad Yaseen S/O M. Ramzan 2,800 Professional Fee Muhammad Aslam S/O Umeed Ali 100,000 Buildings Fee Muhammad Sadiq S/O Ghulam Rasool 5,500 Advertisement Fee Muhammad Akif alyas S/O Muhammad 33,350 Alyas Motar Cycle Mandi Tariq Hussain S/O Khuda Bukhsh 300 Rent of Plat Tariq Hussain S/O Khuda Bukhsh 200 Rent of Shops Sohail Babar S/O Shah Din 1,000 Wastage contract -do- 500 Total 1,875,650