Daily Times

ISLAMABAD: The auditor general of Pakistan has unearthed financial irregularities of more than Rs 140 billion in the Water and Power Development Authority’s (WAPDA) Water Wing, which falls under the orbit of the Ministry of Water and Power.

The Water Wing of WAPDA is responsible for planning, designing and execution of water reservoirs for irrigation, drainage and hydropower generation sectors. The present water reservoirs of the country were also being looked after by the water wing.

Audit Report 2015 available with Daily Times highlights that during 2013-14, the federal government committed irregularities of more than Rs 140 billion and failed to carry out work of de-silting in Tarbela and Mangla dams, which was the main reason behind the decrease in capacity of these dams, despite the fact that their designs aggregated the gross storage to 18 million acres feet.

The report revealed that WAPDA initiated work on construction of 12 small and medium dams to overcome water shortage but unfortunately these dams were hit in snag while the progress was substantial during the current regime.

The report noted that the person sitting in the water wing failed to recover more than Rs 50 billion from Central Power Purchasing Agency (CPPA) despite the fact that the purchasing agency regularly deducted the amount from the invoice of KAPCO, but denied to pay to the government.

The auditor general objected the award of contract beyond the limit of PC-1 of Nai Gaj Dam Project and alleged financial irregularities of more than Rs 38.8 billion in this regard. The PC-1 of this project was approved by the Planning Division of Pakistan with total volume of Rs 26.23 billion, but the government awarded this project to NEIE SMADB–LILLY–RMS–JV at the price of Rs 38.8 billion, causing huge financial loss to the national exchequer.

The report also highlighted that the WAPDA land, adjacent to Mangla dam, worth of Rs 11 billion has been encroached by the local people and Azad Jammu and Kashmir government, which was allegedly setting up a housing society on it.

The auditor general directed the officer concerned to vacate this land as earlier as possible but the official had kept criminal silence over the issue and so far took no action against the person who had usurped this land.

The audit report further stated that the officials sitting in water wing of WAPDA had incurred unjustified expenditure of Rs 10.54 billion on account of administration and consultancy to execute the first stage of Right Bank Irrigation and Drainage Project. Despite spending more than Rs 10 billion on administration, the project that was to complete on 2008 is still under construction.

The auditor general directed the water secretary and Power Ministry to investigate the matter and fix responsibilities regarding inordinate delay in completion of the project. The matter of fixing responsibilities was not adjudicated by the principle accounts officer while the people who misappropriated with impunity are roaming freely.

It has also been noted that the Privatisation Commission of Pakistan did not pay Rs 5.4 billion to WAPDA from the proceed of KAPCO since 1996, and noted that due to non-imbursement, WAPDA was compelled to get more loans from commercial banks to complete remaining projects.

It has been revealed in a report that the federal government transferred more than Rs 5.4 billion from Bhasha dam’s fund to Neelam Jehlam Hydropower Project with the consent of the WAPDA finance general manager. The incumbent regime of the Sharif family has now decided to put Bhasha Hydropower Project at the bottom of its priorities.

The officials sitting in water wing did not recover Rs 4.4 billion from the contractors as liquated damage, while these contract companies were still being facilitated by the corrupt mafia sitting in WAPDA.

Liquated damage was to be recovered from the companies engaged in the construction of Satparr dam, Nai Gaj Dam, Kachi Canal and Mangla Dam projects.

The Federal Board of Revenue (FBR) has also held up Rs 3.6 billion as general sales tax and was playing delaying tactics with WAPDA due to mismanagement of water wing officials.