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Cash-strapped PCB counting costs of Zaka’s tenure
 
 
 

LAHORE - Former Pakistan Cricket Board (PCB) chairman Zaka Ashraf’s era is not only full of financial mismanagements but also a blessing for his blue-eyed persons.
The Nation on Tuesday obtained an internal audit report of the cricket board which clearly showed financial mismanagements of Zaka Ashraf during his short period of 22 months as PCB chairman which includes using vehicles for personal purposes, creating of new posts to oblige near and dear ones, hiring without advertisements, and many others contrary to PCB rules and regulations.
The report verifies the expenses incurred on chairman’s travelling especially with regard to expenses incurred for chairman guest and family and review period of 22 months (Oct 11 to May 13 and 15 Jan to 10 Feb 14) discloses an amount of Rs 25,787,496 spent on domestic (Rs 10,847,472) and foreign (14,940,024) travelling of the chairman including his guests, families and security squads deriving average monthly expense of Rs 1,172,159. The expenditure made by the former chairman, during his three year term from Oct 2008 to Oct 2011 amounting Rs 2,087,544 while later chairman Zaka Ashraf spent Rs 10,847,472 during October 2011 to May 2013 on similar head of expense (4.2 times greater than his predecessor).
An instance of non-compliance with PPRA rules noted where Toyota Prado was hired 14 times from Messrs Ample Enterprises (not prequalified) for PCB chairman at an aggregate cost of Rs 4.27 million without complying with the PPRA rules and regulation.
The report also verifies the process of hiring, firing and salary revisions of PCB staff especially with regard to whether promotions and increments made, were based upon performance appraisals and are consistent in relation to rest of HR.
A numbers of employees have been directly appointed on newly-created positions without advertising in contrary with the provisions of section 9.4.5 of Employees Service Rules 2011 where the condition waived for vacant positions only for salary below Rs 100,000. As many as 37 additional posts have been created for discretionary appointments at monthly payroll cost of Rs 4,094,233 without any institutional justification and budgetary provisions.
Employees in Grade FH 1 and below are not entitled to the board-maintained vehicle as per employees’ service rules 2011 however in 5 cases, the rules are being contravened.
The report also disclosed the general compliance with PPRA rules in respect of all additions in fixed assets and capital work in progress. The PCB entered into an agreement with Messrs Ali Associates for Rs 21 million in respect of construction of security rooms and pre-cast boundary wall at cricket stadium Islamabad after complying with requirements of PPRA rules. However, later on, the PCB assigned the additional work of aggregating Rs 34,360,383 (164% of the contract value) to same contractor without complying tendering process.
During the 22-month period of Zaka Ashraf, Rs 42,186,060 were spent on purchase of new vehicles while in the era of Ijaz Butt, Rs 9,283,159 were utilized during the 36-month period.
The report also verified the utilization and authorization of all complementary tickets either utilized by PCB or given to third parties. Account is not available in respect of utilization of tickets purchased from the BCCI for India tour and from the ICC for Champions Trophy amounting Rs 759,047 and Rs 2,397,712 respectively. The report also showed comparison of an amount of Rs 14,365,880 incurred on travelling during 2011-12 and 2012-13 while that were Rs 2,730,530 in 2009-10 and 2010-11 (5 times lesser).
The expenditure incurred on entertainment of ex-chairman PCB including his guests, security staff as well as during various meetings at NCA totaling Rs 2,033,028. For this purpose a separate department was established with the name of PR and Coordination exclusively for the protocol of ex-chairman and his guests at a monthly payroll cost of Rs 681,000 while the overall cost incurred on chairman PR & Protocol during 2012 & 2013 totaling Rs 11,824,681.
The report also included the additional costs incurred on restructuring domestic cricket structure with regard to inclusion of additional regions as compared to previous years. Incremental cost of Rs 29 million as at 31 March 2014 has been incurred on additional four regions namely (i) Bahawalpur, (ii) Larkana, (iii) FATA & (iv) Dera Murad Jamali inducted in June 2012. The expenditure mainly includes (a) establishment of offices (b) staff salaries, (c) office rent (d) running expenses etc.
Nine sponsorship agreements with various parties at an aggregate consideration of Rs 228,987,154 that were executed by PCB under the chairmanship of Ijaz Butt which on expiry of term, could not be renewed to date owing to poor marketing efforts in the time span of his successor resultantly loss to PCB in million of rupees.
Loss of interest income of Rs 2.7 million (Rs 36 million*10%/12*9) due to non execution of formal arrangement with Faysal Bank despite the fact lead sponsorship rights exercised by Faysal Bank for various domestic events held in between July 2013 to March 2014. Furthermore, the PCB has disbursed prize money to players on behalf of Faysal Bank as at 22 April 2014 amounting Rs 19.301 million.
Three-year term of agreement with Pepsi Cola renewed with considerable delay period of 301 days (28 October 2013) at revised consideration of $6,771,768 thus resultant in loss of interest income to PCB of approximate Rs 20 million (220,000,000*10%p.a*11/12).
The financial obligations of the four parties including (a) Essential 99, (b) FM 107, (c) IMG; and (d) GS Communication under respective Agreements were to be secured through post-dated cheques. However, such instruments were not submitted to PCB therefore an aggregate sum of Rs 12,396,889 remains outstanding from parties and appear doubtful.
Formal agreements not executed with parties During various domestic events, sponsorship rights were awarded to 6 parties (i) PTV, (ii) MM Forex, (iii) Zong, (iv) Unifoam, (v) Salam Watander; and (vi) Trafco Logistics without formal agreements as a result of which Rs 6,979,125 remains outstanding from such parties.
Similarly, there are numerous other cases namely Transmedia Advertising, Next Tier, ADD International, AKZ Associates etc where dues received delay but PCB did not exercise its right to charge liquidated damages/ late payment interest in accordance with the clause mentioned in respective agreements, the report concluded.

 
 
on epaper page 18
 
 
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