LAHORE - The Punjab auditor general, in its report, alleged the University of Engineering & Technology (UET) for embezzlement and administrative irregularities, it has been learnt.

Scandal involving financial and administrative misappropriations has surfaced subsequent to the UET administration’s refusals to provide financial records of Institute of Business Administration (IB&M) and department of Professional Development Center (PDC) to the audit team in violation of the Auditor General’s Ordinance, 2001 as well as the UE&T Act 1974.

Documents available with The Nation, revealed the reluctant conduct of UET high-ups towards fulfilling their lawful duty as they did not respond positively to the office of the Accountant General Punjab despite being requested several times to provide access to the financial records of the said institutions. 

According to the documents, the audit team recommended disciplinary actions against the officials of UET including IB&M and PDC head Dr Shoaib, who is considered to be close with UET VC Lt Gen (R) Muhammad Akram Khan. The inquiry held Dr Shoaib responsible for non-cooperation with in-charge auditor despite being approached and written several times.

The report also revealed extensive embezzlement, mounting to millions of rupees in account of inflows and outflows of the said institutions along with administrative irregularities involving disobedience to financial rules.

The report challenged the establishment of the IB&M and PDC and declared them unlawful as their establishment was not approved by competent authority which is contrary to the UE&T Act 1974, section 29/g and 24/1z that stipulate university’s syndicate and senate approval for any such endeavor. IB&M and PDC were established within the limits of the UET without following the procedures prescribed in university Act 1974, it added.

The report described, “During the financial year 2012-2013, the income of IB&M, amounting to millions of rupees and required to be remitted to the university accounts, has not been remitted in defiance of UET Act 1974, section 38, therefore, the reports underscores that the whole un-remitted amount appears to be misplaced.”

The report cited that, “Under the provisional statutes of IB&M, university has 40 percent share in the profit of IB&M; however, no accounts were provided to verify the profit ever remitted to the university account”.

Furthermore, it explained that, “The PDC, another institute situated inside university limits, has also earned millions of rupees in form of fees since its inception but the audit team has found that not a single penny has been remitted to the university account as required by the UE&T Act”.

Punjab Auditor General’s office wrote as many as seven letters to IB&M and PDC from September 07-25, 2013. IB&M and PDC administration only responded against request (letter number DGA/LAP/2013-14/266), stating vide letter number IB&M/Dir/2013-375 that according to the provisional statutes of IB&M and as per the minutes of the meeting of first meeting of Executive Committee of IB&M, the institution was required to carry out third party (external) Audit by established chartered accountant firms. However, the institute did not provide copies of the minutes despite requests, stated in documents.

When contacted, UET VC Lt General (R) Muhammad Akram Khan said that the provision of financial record of IB&M and PDC to the Punjab Auditor General’s office was not mandatory for the university. He mentioned that the varsity administration wrote a letter to the office of provincial Auditor General in which it clarified legal situation as well as legal standing of IB&M and PDC.

He said that the audit of the said institutions had been done by the external auditors. He, however, said if there would be any role which force for audit, we would produce the record to the AG office.