ISLAMABAD - The auditor general of Pakistan (AGP) has observed alleged irregularity in Islamabad-Peshawar Motorway (M-1) project as charging of Rs 8296.8 million to development funds was unauthorised and without provision in PC-1. This irregularity was pointed out in November 2010 while the concerned authority did not furnish any reply, according to the fresh report of audit year 2010-11 made available with TheNation. The report said that PC-1 of the M-1 project contained physical contingencies at two per cent of the PC-1 Cost which were required to be utilised for NHA establishment and other miscellaneous expenses (non-development /non-capital expenditure). While General Manager M-1, NHA, prepared year-wise release statement, which indicated that funds amounting to Rs 34,973.2 million were released out of which expenditure of Rs 34,926.4 million was incurred during the 1992-93 to 2009-10. Therefore, expenditure for two per cent physical contingencies (non-development expenses) was required to be incurred up to Rs 698.5 million against which an amount of Rs 8995.4 million was shown debited in the trial balance for the year 2008-09, which was 1188 per cent above the provision of PC-1. This resulted in unauthorised charging of Rs 8296.8 million to non-development expenditure to the development funds, said the audit report. Audit observed that charging of Rs 8296.8 million to development funds was unauthorised and without provision in PC-1. The matter was also reported to the Principal Accounting Officer in December 2010 but neither any reply was received nor was DAC meeting convened despite best efforts. However, audit stressed fixation of responsibility and action against the person at fault. In another para, the audit observed that the irregular award of work due to failure of internal controls. The report said that General Manager Punjab, NHIP awarded contract 15,16 and 17 for Rs 4883 million to M/s FWO without calling tenders in March 2007. This resulted as award of works for Rs 4883.5million. The irregularity was pointed out in July 2010 and in this regard the authority replied that as a result of the devastating earthquake in 2005 the World Bank provided an additional loan to NHA to enable the reconstruction of the damaged highways. During negotiations it was assessed by representative of government and NHA that FWO was the only organisation equipped and capable of carrying out the works in the mountainous areas on emergent basis. The matter was also reported to the Principal Accounting Officer (PAO) in September 2010 but neither any reply was received nor DAC meeting convened despite efforts. The audit stressed fixation of responsibility and action against the person at fault.