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Audit report shows massive irregularities in 2013 National Games

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07-Jan-2016

ISLAMABAD: A detailed audit report of the contentious National Games in 2013 shows massive irregularities took place in the conduct of the Games.

The audit report, a copy of which was obtained by Dawn on Tuesday, establishes that over Rs100 million were spent on the Games but the organising committee spent the tax payers` money in the most dubious manner with a huge chunk of money being lost to corrupt practices.

The audit of the 32nd National Games which held from June 28 to July 4, 2013 at the Pakistan Sports Board was conducted by a three-member audit team headed by audit officer Mohammad Ifthikar.

It also deserves a mention that the team submitted a copy of the audit report to secretary of the Ministry of Inter-provincial Coordination on Dec 28, 2015.

The controversial Games were organised by an interim committee headed by Basket Ball Federation president Asif Bajwa and then secretary of the Pakistan Hockey Federation Rana Mujahid with retired Col Mohammad Zafar of the Islamabad Olympic Association playing important role in the `successful` conduct of the Games.

The report says that management of the interim committee spent Rs17,135,401 on accommodation of players and officials without callingfor open tenders.

It mentions that the interim committee which organised the event didn`t provide audit team with the list of players and officials to whom hotel accommodation was given while payments to hotels were made on different rates with 20 per cent of the GST paid to hotels not being deducted at source.

`The management through the above process extended undue benefit to private persons at the cost of public money and thus deprived the government of the benefit of competitive bidding,` it says.

On the other hand, the audit report recommends that irregularity in shape of non-calling of open tenders be condoned by the competent authority besides provision of complete record of players and officials to verify the payments.

It also notes that the interim committee took out Rs 36,000,000 in cash from the Abpara branch of the National Bank of Pakistan for payment of TA/ DA, prize money and organisational charges.

In this regard, the audit team refers to rule 157(N-2) of the Federal Treasury Rules stating that payment of Rs500 and above to firms or private persons may also be made through bank orders but the interim committee withdrew the money in cash.

Also, the audit team observes that management withdrew heavy amount through cash instead of making payment through crossed cheque.

Out of a total withdrawal, Rs 20,108,291 was handed over to the Event In Charge of teams for further disbursement to officials and players.Similarly, out of a total withdrawal of Rs5.00 million for payment of TA/DA, an amount of Rs 4,153,000 was handed over to the Team In charge for further disbursement to the players.

Also, Rs6.00 million was handed over to managers of various organisation on account of organisational charges but its further utilisation is completely unknown.

The report also mentions that the audit observations were sent to chairman of the interim committee Asif Bajwa on Oct 16, 2015 but is yet to be replied.

It has also been revealed that the organising committee purchased kits, uniforms, medals, souvenirs and banners worth Rs11.648 million from various firms without calling for open tenders as required under the PPRA rules-12.

The management of interim committee spent Rs 11, 522, 846 on account of payment to various vendors whose services including transports facility were hired without calling for open tenders, the auditreportfurthersays.

On the other hand, it mentions that a list of vehicles along with the movement record was not available in connection with hiring of vehicles.

`Advance of Rs1,000,000 was paid in cash to retired Col Zafar for arranging vehicles which were privately hired but record of hiring of vehicle was not available,` it reveals.

`The audit recommends that the irregularity be condoned by the competent authority besides investigations into cash payment of Rs 1,000,000 toretired Col Zafar,` the audit report adds.

Furthermore, it observes that M/s CA sports presented computer-printed bill of Rs 1, 241, 000 for supply 1,000 cricket kits with logo and 300 track suits. However, it says, cricket was not part of the Games.

`The management of the interim committee issued cheque dated 26-6-2013 for Rs993,978 to M/s CA Sports against such claim. Later on, the firm submitted another computer-printed bill of Rs 1, 098, 500 by changing items. That is 1000 trousers/ shirts and 300 track suits. The management cancelled the earlier cheque and issued a new one.

`Entertaining of computer-printed bills leads to suspected misappropriation of public money,` the audit report observes.

Similarly, it also points out that the interim committee made unsupported payments worth Rs 14.700 million to the Provincial Olympic Association with the amount being transferred online to various banks account but payee receipts/ utilisation record was not produced before the audit.

Moreover, the organizing committee, it says, didn`t make any effort to obtain the utilization record. `Audit recommends either utilization accounts be produced or amounts be recovered from the quarter concerned,` it states.

Apart from revealing other massive irregularities, it also points out unsupported payments worth Rs4.153 million for publicity expenses and Rs 2.097 million for missing equipment.