AGP reveals Rs 38.23m audit observations in Gwadar project

[Naveed Yaseen]

ISLAMABAD: Auditor General of Pakistan has placed Rs 38.23 million under audit observation in the accounts of Gwadar Port Authority/ Gwadar deep-water port project for the year 2005-06 in its audit report for the year 2006-07. The audit observation consists of three parts, including non-achievement of benefits from desalination plant. Secondly, non-utilisation of three speed motors boats costing Rs 9.389 million and last one is, non-recovery of liquidated damages for delay in works, worth Rs 28.841 million. According to the audit report on the accounts of public sector enterprises an option of sea water desalination plant for Gwadar Fish Harbour-cum-mini Port (GFH) was approved in ECNEC. The project was completed and commenced its operation on 15 June 2005 at the cost of Rs100 million but the required desalinated water never reached the actual users-- Fish harbour for fishermen and for ice plants. Thus, the entire investment on desalination plant remained fruitless, as the benefits had not been achieved for the purpose for which it was installed. The second observation was the non-utilisation of three speed motors boats worth Rs 9.389 million. The report revealed that every public officer was expected to exercise the same vigilance in respect of expenditure incurred form public money as a person of ordinary prudence would exercise in respect of his own money. The third audit observation was related to the non-recovery of liquidated damages for delay in works worth Rs 28.841 million. As per contracts awarded by Gwadar Port Authority (GPA) to various contractors for civil works in respect of Gwadar Deep Water Port Project (Phase I), Liquidated damages were to be recovered form the contractors. On the contrary, the GPA did not impose and recover liquidated damages amounting to Rs 95.881 million from contractors. The matter was pointed out to the management on January 2007. The management in their reply through DAC working papers informed that LD charges would be recovered before completion of the project. ijaz kakakhel

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