Daily Times

LAHORE: An audit report has revealed overpayments and losses amounting to Rs 121.45 million in the Lahore Metro Bus project.

The report found that the irregularities were either due to weak technical, supervisory and financial controls or poor contract management.

According to documents available with Daily Times, overpayment due to incorrect RCC rates stands at Rs 41.1 million, non-utilisation of retrieved material at Rs 35.28 million, overpayment due to incorrect labour rates at Rs 23.39 million, overpayment due to incorrect rate of item of paint at Rs 16.32 million, overpayment due to extra overheads in the rates analysis at Rs 4.08 million and loss due to higher rates in technical sanctioned estimate than PC-I rates at Rs 1.28 million.

The report has recommended that the principal accounting officer needs to strengthen internal control regimes in the department.

It says that the supervisory officers need to implement internal controls such as test check measurements/periodic inspection of works, and recover the amount paid to the contractor(s) on account of taxes, which were not applicable or paid in excess.

It adds that action should be initiated against the officers responsible for lapses and violation of rules, besides affecting recoveries. It also said that proper rate analysis should be carried out while sanctioning the PC-I and technical sanctioned estimates. It also recommended initiating disciplinary action against officers on account of non-production of record to audit and necessary directions be issued in this regard to all those concerned.