Pakistan govt in soup as Auditor detects massive irregularities in COVID-19 expenditure

In a huge embarrassment for the Pakistan government led by Imran Khan, the nation's Auditor-General Javaid Jahangir detected massive irregularities in its COVID-19 expenditure. This report was based on the audit of various departments and organizations of the Pakistan government that incurred expenditure during the pandemic on relief activities, provision of subsidized food items and implementation of the Economic Stimulus Package. It has been submitted to Pakistan President Arif Albi following which it will be tabled before the country's Parliament.

Here are the flaws highlighted in the audit:

• Contrary to the law, the National Disaster Management Authority (NDMA) failed to submit copies of 55 contracts worth more than 50 million Pakistani rupees each to the National Accountability Bureau thereby hindering transparency in public procurements.
• Non-transparent procurement of COVID-19 equipment from China
• Loss of $9,94,000 to the public exchequer on account of purchase of ventilators at higher rates
• $4 million grant by China to construct a 250 bed-Isolation Hospital and Infections Treatment Center not utilized by the NDMA
• Excess payment of $7,00,000 to a Chinese firm for procurement of ventilators

• The government incurred a loss of 48.65 million Pakistani rupees due to the non-imposition of stamp duty
• Weak contract management by the NDMA

• Live saving injections were distributed without keeping in view the respective shares of the provinces as provided in the approved SoP
• Relatively better-off beneficiaries received payment under the Ehsaas Emergency Cash Program. Launched by Imran Khan on April 1, 2020, this scheme entailed the disbursement of Cash Transfers to protect the vulnerable section of the population. As per the analysis, 1.32 million enrolled beneficiaries have still not been paid. 

• Loss of 8.251 million Pakistani rupees was incurred owing to the Directorate of Central Health Establishment (CHE) purchasing personal protective equipment at higher rates as compared with procurements made by the National Institute of Health (NIH)

• Out of the Economic Stimulus Package for citizens, 314 billion Pakistani rupees were not released

• The Economic Coordination Committee of the Pakistan Cabinet released 10 billion Pakistani rupees to the Utility Stores Corporation (USC) to provide 5 essential food items- Atta, Sugar, Ghee, Pulses and Rice at subsidized rates to vulnerable segments of the society. However, it incurred a loss of 1,374.084 million Pakistani rupees due to irregular and ill-planned procurement of sugar. 
• The USC made procurement of ghee for 1,601.964 million Pakistani rupees from companies without a competitive tendering process. Moreover, the ghee procured from these companies had been declared unfit for human consumption in the past.
• The procurement of sugar at higher rates resulted in a loss of 100.730 million Pakistani rupees to the USC
• The Master Business Management Consortium caused a loss of 196.400 million rupees to the USC by compromising the quality of Atta
• Irregular contract and business with black listed flour mills
• Overall, irregularities of up to 5.24 billion Pakistani rupees were detected in purchases of sugar, ghee and wheat flour by the USC