ISLAMABAD - Federal bureaucracy doled out thousands of millions of rupees without following prescribed rules during the fiscal year 2011-12, revealed an official document available with The Nation.

Auditor General of Pakistan found out embezzlement and irregularities in Establishment Division worth more than Rs 4,639 million during audit for the year of 2011-12, a document available with The Nation revealed on Tuesday. The auditor general presented report on 5th of July before the offices of President, Prime Minister and Public Accounts Committee (PAC) for further instructions.

According to documents, final budget allocated to the Establishment Division for the financial year 2011-12 was Rs 4,114.895 million including supplementary grant of Rs 467.779 million out of which the division utilised Rs 2,995.308 million.

The most irregularities were discovered in unauthorised investment amounting to Rs 3,186.555 million in corporate entities, which are holding trust funds such as pension funds, benevolent funds or insurance funds, the document revealed.

It said the management of FEB and GIF invested funds of Rs 22,754.808 million in various schemes on 30-06-2012 whereas audit observed that FEB and GIF invested funds of Rs 3,186.555 million in non-government shares and TFCs.

According to document, the Establishment Division faced loss due to investment in non-government securities worth Rs 1,224.020 million.

The audit recommends that the matter may be got investigated from an independent agency to fix responsibility for making investment in non-government securities resulting in loss to the government. The audit report said the Establishment Division involved in unauthorisation of FEB and GI funds on pay and allowances and operational expenses to the tune of Rs 159.323 million that is in sheer violation of rules.

The Report said that the management of Establishment Division found irregular purchase of vehicles amount of Rs 5.747 million. Audit observed that the management procured the vehicles without the approval of the vehicles committee of the Finance Division and it was irregular and unauthorised.

At the same page, the audit found that department was involved in irregular monetisation of official vehicles worth Rs 2.520 million. According to report, the depreciated value of vehicles was not calculated/ recommended by the condemnation/ replacement committee constituted in the Establishment Division in accordance with rule. According to the audit, the entire process of monetisation of vehicles was irregular and unauthorised.

The audit report said that the department had made irregular execution of development works amount of Rs 50.778 million. Interestingly, the management has accepted the audit observation and it is clear that the investment was prone to risk and the invested funds are now at the mercy of the private company up to the extended period of 2019. The document said that Establishment Division did not recover pay and allowances from ex-managing director worth Rs 1.711 million.

Establishment Division appointed managing director, federal employees benevolent and group insurance funds on contract basis. The management paid Rs 1.711 million to the officer on account of pay and allowances and other privileges. The management and board of trustees in its meeting decided that the pay and allowances and other privileges drawn by the officer should be recovered from him in pursuance of the Supreme Court's decision in NRO cases. Audit observed that amount paid on account of pay and allowances and other privileges was not recovered from the said officer.

Report also pointed out irregular extension of contract of security agency, worth Rs 1.183 million, was also made by the official of establishment division. Audit observed that the contract of safety and security services agency was extended for the third year without open competition and in violation of terms and conditions of the tender notice and the contract agreement. The department, during audit, presented many written replies about various allegations of audit team but the auditors expressed no satisfaction and suggested to observe defined rules.