PDPs of PHED 2023-24 1st Batch

Name of Department: PHE & RDD
Proposed Draft Para#01

AAR 2023-24
Non-production of record
Section 14 (2) and (3) of the Auditor-General’s (Functions, Powers and Terms and
Conditions of Service) Ordinance, 2001 provide as under:
(2) The officer in charge of any office or department shall afford all facilities and
provide record for audit inspection and comply with requests for information in as complete a
form as possible and with reasonable expedition.
(3) Any person or authority hindering the auditorial functions of the Auditor-General
regarding the inspection of accounts shall be subject to disciplinary action under Efficiency
and Discipline Rules.
During audit of various office of the Public Health Engineering & Rural Development
Department, Government of Sindh, for the year 2021-22, auditable record was not provided
despite repeated requisitions. Details are at Annex-I
Audit is of the view that non-production of record is a violation of AGP ordinance and
reflects negligence on the part of the management. Due to non-production of the specified
record the authenticity of expenditure made could not be ascertained.
Non-production was reported to management from November 2022 to June 2023, but
no reply was received.
Audit requires justification regarding non-production of record, besides fixing of

responsibility on person(s) at fault.
PDP#01 Non-production of record Annex-I
(Rs. in million)
Sr# Name of Department Particulars F.Y AIR# Amount
1 PHE Division, Mithi Deposit Register 2021-22 08 71.527
2 PHE Division-II Completion Certificate/PC-IV 2021-22 07 19.793
Khairpur @ Ranipur
3 PHE Division, Qambar Invoices of manufacturer of machinery & solar 2021-22 01 15.373
Shahdadkot system
Work completion report from SEPCO 09 7.395
4 PHE Division, Jacobabad Movement register & Log Book 2021-22 08 0.429
5 Chief Engineer PHE Supporting vouchers 2019-22 02 0.422
Hyderabad Requisition, NOC, repair register, old replace parts, 05 1.083
completion report
6 PHE Division, Tando Log books 2021-22 04 0.088
Allahyar
7 PHE (O.M) Khairpur Supporting vouchers 2021-22 01 255.580
Log book, consumption account 02 49.821
Technical sanction of works 06 16.529
Consumption account of articles 07 13.313
Evidence regarding quality quantity of processed 08 13.079
water, completion certificate, lab testing report,
replaced parts & warranty certificate
Disposal of old membrane, warrant cards 09 8.775
8 PHE (O.M) Mirpurkhas Auditable record 2021-22 03 88.611
Installation report of electric meter 04 0.903
Log books & invoices 05 5.996
BOQ, M.B, Completion report, T.S, minutes 07 17.708
Payment bills of Security Deposit 10 21.199
9 PHE (O.M) Sujawal Record relating to Cost Centre SL-0091 the 2021-22 01 20.767
payment was made to contractor M/s A.A. Memon
Technical sanction estimate 02 8.234
Record relating to other services rendered 05 21.615
Requisition, NOC, repair register, old replace parts, 06 0.196
completion report, estimate
10 PHE (O.M) Nushero Technical sanction of work 2021-22 02 88.298
Feroze Log book, consumption account 04 32.141
Contract Agreement 08 20.507
11 PHE (O.M) Dadu Satisfactory functioning report & rate analysis 2021-22 01 17.355
Log book, working certificate & schedule of load 07 9.835
shedding
Estimates, requisitions & satisfactory reports 08 3.791
Estimates, requisitions, acknowledgements & 10 7.969
satisfactory reports
12 PHE (O.M) Sanghar Movement register & Log Book 2021-22 01 21.301
13 PHE (O.M) Ghotki Contract Agreement 2021-22 02 17.326
14 PHE (O.M) Shikarpur Log book, consumption account 2021-22 04 9.834
Technical Sanction of works, MBs 08 5.927
Progress report, tender register, cash book, copy of 09 0
call deposit & deposit register
15 PHE (O.M) Jaccobabad Log books 2021-22 04 9.639
PHE (O.M) Badin Paid Electric bills 2021-22 03 2.060
16 Completion Certificate 07 2.517
Log books 09 1.890
17 PHE (O.M) Larkana Requisition, NOC, repair register, old replace parts, 2021-22 07 1.714
completion report, estimate
Total 910.54
AAR 2023-24
Unjustified payment on account of management charges for RO Plants – Rs 2.720 million
According to Article 84 of Audit code, it is an essential function of the Audit to bring

to light not only cases of clear irregularities but every matter which in its judgment appears to
involve improper expenditure or waste of public money or stores, even though the accounts
may be in order.
During audit of the office of Executive Engineer, Public Health Engineering (Operation
& Maintenance) Division, Badin for the Financial Year 2021-22, it was observed that excess
payment of Rs. 2.720 million was made to M/S Nazeer Construction on account of management
charges under the head of account “Establishment routine maintenance”. As per the estimates,
the management charges for 12 months were required to be paid at 03 times per month for 44
Nos. of RO plants, but the same were allowed against 308 Nos. of RO plants in a year. Thus
management charges for 272 visits were paid in excess which was not justified. Details are as
under:
CV# 96 Date 13/6/2022, 4th R.A

Description Qty Rate Amount
As per bill 308 10,000 3,080,000
As per estimate & BOQ 3*12=36 5000 180,000
Excess 272 10,000 2,720,000
Audit is of the view that instead of 03 visits in a month as required, the management
allowed excess payment on management charges for 272 visits which was unjustified.
The matter was reported to the department from April 2023, but no reply was received.
Audit requires justification in the matter besides, recovery of the unjustified amount
from the concerned under intimation to audit.
AIR#01
AAR 2023-24
Irregular award of work on single bid basis – Rs.509.97 million
According to Rule-48 of SPPRA 2010 regarding Acceptance of Bids “Even when only
one bid is submitted, the bidding process may be considered valid, if the bid was advertised in
accordance with rules, and prices are comparable to the prices or rates of the last awarded
contract or the market prices.”
During audit of the following offices of Public Health Engineering & Rural
Development Department, Government of Sindh, for the Financial Year 2021-22, it was
observed that contract costing Rs.509.97 million was awarded on single bid basis without any
market survey or comparison with the last awarded contract of similar nature of works.
(Rs. in million)
Sr# Name of Department F.Y AIR# Amount
1 PHE (O.M) Sanghar 2021-22 05 228.943
2 PHE (O.M) Nushero Feroze 2021-22 01 112.522
3 PHE (O.M) Larkana 2021-22 03 102.483
4 PHE (O.M) Shikarpur 2021-22 05 66.022
Total 509.97
Audit is of the view that due to non-conducting proper market survey and analysis of
other procurements of similar nature, chances of uneconomical procurement cannot be ruled
out.
The matter was reported to management from November 2022 to June 2023, but no
reply was received.
Audit requires fixing responsibility on the person(s) at fault, besides taking remedial
measures.
AAR 2023-24
Splitting of work to avoid tender– Rs. 158.632 million
As per Rule-12(1) of SPPRA Rules, 2010, “All procurements for each Financial Year
and shall proceed accordingly without any splitting or regrouping of the procurements already
grouped, allocated and scheduled in procurement plan.” As per Para 2.10 of SPPRA Guidelines
for works 2013, “A group of works which forms one project shall be considered as one work,
and the necessarily of obtaining the sanction of the competent authority to such group of works
is not avoided by the fact that the cost of each particular work in the group is within the powers
of sanctioning of any authority sub-ordinate thereto. The contents shown in italic clearly states
that word WORK is used for project and project have various components. Tenders for each
component can be invited separately but each component should not be divided in to sub-
components. The components of work/scheme/project cannot be further splitted for tendering
purpose.”
Development Department, Government of Sindh, for the year 2021-22, it was observed that
various works amounting to Rs.158.632 million were awarded to contractors by splitting the
works to avoid the tender requirement in violation of SPPRA rules.
(Rs. in million)
1 PHE Division-II, Khairpur 2021-22 11 5.742
2 PHE (O.M) Nushero Feroze 2021-22 05 70.443
3 PHE (O.M) Khairpur 2021-22 03 43.504
4 PHE (O.M) Sanghar 2021-22 07 23.697
5 PHE (O.M)Division, Badin 2021-22 05 7.102
6 PHE (O.M) Mirpurkhas 2021-22 06 3.750
7 PHE (O.M) Shikarpur 2021-22 03 3.397
8 PHE (O.M) Jaccobabad 2021-22 02 0.997
Total 158.632
Audit is of the view that due to non-invitation of tenders, chances of uneconomical rates
could not be ruled out.
reply was received.
Audit requires justification for such expenditure without invitation of open tender
besides fixing of responsibility on persons at fault.
AAR 2023-24
Doubtful expenditure on replacement of RO Plant parts – Rs.125.659 million

As per Rule-4 of SPPRA Rules 2010, “While procuring goods, works or services,
procuring agencies shall ensure that procurements are conducted in a fair and transparent
manner and the object of procurement brings value for money to the agency and the
procurement process is efficient and economical.”
observed that an expenditure of Rs.125.659 million was made on replacement of various parts
of R.O plants, however, no evidence regarding proper installation, fixing of the necessary parts
in units/plants along with satisfactory functioning report was available on record. Further, the
whereabouts of replaced parts of R.O plants such as membranes, submersible pumps and VFD
invertors were also not available in the record.
(Rs. in million)
1 PHE (O.M) Sanghar 2021-22 03 68.939
2 PHE (O.M), Khairpur 2021-22 04 31.311
3 PHE (O.M) Dadu 2021-22 03 25.409
Total 125.659
Audit is of the view that in the absence of old spare part register and store verification,
replacement of parts could not be authenticated.
Audit requires production of replaced parts dully reconciled with earlier purchases to
verify their genuineness.
AAR 2023-24
Irregular award of tender without fulfilling evaluation criteria – Rs. 112.522 million
As per SPPRA Rule 21-A, the procuring agencies shall formulate an appropriate
evaluation criterion, listing all the relevant information against which a bid is to be evaluated
and criteria of such evaluation shall form an integral part of the bidding documents. The failure
to provide a clear and unambiguous evaluation criterion in the bidding documents shall amount
to mis-procurement.
& Maintenance) Division, Naushero Feroze for the Financial Year 2021-22, it was observed
that M/s Minerva Builders & Innovations (Pvt) Limited was awarded Operation &
Maintenance work of RO & UF plants installed at various location of District Naushero Feroze.
Audit observed the following issues in the Bid Evaluation Criteria:
1. As per Bidder Eligibility /Qualification Report, at least three years’ turnover of the
bidder was required, but as per NTN certificate (i.e 6943207-40), the bidder was
registered w.e.f. 10-03-2020 with office address of Rawalpindi, Rawal Town, which
reflected that the requirement was short of 02 years.
2. As per observation raised by SPPRA, the procuring agency did not mention the criteria
for bid evaluation in the bidding documents. Further, notification of composition of the
procurement committee and complaint redressal committee were not hoisted on the
website.
Audit is of the view that the bidding requirements were not fulfilled, which was against
the SPPRA rules which stands irregular.
Audit requires justifications of the above irregularities.

AIR#11
AAR 2023-24
Unjustified part-rate payment without execution of actual woks-Rs.112.017 million
According to Appendix 18-A of Sindh Financial Rules, Volume-I, states that “every
officer should realize fully and clearly that he will be held personally responsible for any loss
sustained by government through fraud or negligence on his part and that he will also be held
responsible for any loss arising from fraud and negligence on the part of any other government
office to the extent to which it may be shown that he contributed to the loss by his own actions
or negligence”.
During the audit of the following offices of Public Health Engineering & Rural
Development Department Government of Sindh, for the year 2021-22, it was observed that
payment on account of various items amounting to Rs.112.017 million was made to contractors
at reduced rates without execution of related part of works. Furthermore, details of
consumption account, delivery challans and invoices of items i.e. machinery, solar panels,
pipes and blocks etc. were also not available in the record.
(Rs. in million)
1 PHE Division, Mithi 2021-22 11 81.033
2 PHE Division-I Khairpur 2021-22 08 2.654
3 PHE Division, Kashmore 2021-22 09 1.475
4 PHE Division, Jaccobabad 2021-22 01 0.510
5 PHE (O.M) Sanghar 2021-22 04 18.765
6 PHE (O.M) Dadu 2021-22 02 5.780
7 PHE (O.M) Sujawal 2021-22 04 1.800
Total 112.017
Audit is of the view that part rate payment was made on the pretext of supply of material
included in BOQ items. No provision of secured advance procedure was invoked and details
of consumption account, delivery challans and invoices of items i.e. machinery, solar panels,
pipes and blocks etc. were also not available in the record against which part payments were
made. Thus, payment was made in advance without provision in contract agreements only to
avoid lapse of budget, which clearly shows undue favour was extended to the contractors.
Audit requires inquiry into the matter besides fixing responsibility for payment on
reduced rates without any reason.
AAR 2023-24
Irregular expenditure on non-scheduled items without rate analysis – Rs. 97.619 million
According to Sr. # 4 of Schedule of Rates (Composite) for finished items of works,

1996, “Non-schedule item costing up to Rs. 1,000 should be got sanctioned by the concerned
Superintendent Engineer and exceeding Rs. 1,000 must be got approved and sanctioned by the
Chief Engineer.”
Rs. 97.619 million was spent on various non-scheduled items, but rate analysis based on market
rates was not available on the record.
(Rs. in million)
1 PHE (O.M) Sanghar 2021-22 02 82.038
2 PHE (O.M) Shikarpur 2021-22 02 10.364
3 PHE (O.M) Larkana 2021-22 08 5.217
Total 97.619
Audit is of view that the management did not conduct rate analysis of the market items,
thus reflecting negligence on its part besides, chances of excess payment cannot be ruled out.
Audit recommends providing justification for not conducting the rate analysis against
the non-scheduled items besides, fixing responsibility on the person(s) at fault.
AAR 2023-24
Irregular execution of work beyond 15% of the original contract amount - Rs. 82.06
million
As per SPPRA Rule 2.10 regarding limitations on splitting or regrouping within the
proposed procurement, “Procuring agency must invite tenders without any splitting or
regrouping of the procurements already grouped, allocated and scheduled in the procurement
plan. The components of work/scheme/project cannot be further splitted for tendering purpose.
And As per SPPRA Rule 2010 No. 16 (e) “Repeat Orders – means procurement of additional
quantities of the item(s) from the original contractor or supplier, where, after the items
originally envisaged for the project or scheme have been procured through open competitive
bidding, and such additional quantities of the same item(s) of goods or works are needed to
meet the requirements of the project or scheme; Provided that; the cost of additional quantities
of item(s) shall not exceed 15% of the original contract amount.”
work was awarded at a cost of Rs. 103.237 million. Later on, cost and scope of the works were
enhanced to Rs. 82.06 million beyond the permissible limit of 15% of the original work.
Details are as under:
(Rs. in million)
Sr# Name of Department AIR# Bid cost Expenditure Excess %
1 PHE Division, Jaccobabad 06 86.290 151.508 65.217 76%
2 PHE Division-I, Khairpur 04 16.947 33.790 16.843 99%
Total 103.237 185.298 82.06
Audit is of the view that execution of work beyond 15% of permissible limit without
conducting re-tendering is held irregular.
reply was received.
Audit requires justification under intimation to audit besides fixing of responsibility on
the person(s) at fault.
AAR 2023-24
Non-invitation of tender – Rs. 24.073 million
According to Rule-17 (1) of the Sindh Public Procurement Rules 2010, “Procurements
over three hundred thousand rupees and up to two million rupees shall be advertised by timely
notifications on the Authority’s website and may in print media in the manner and format
prescribed in these rules.”
expenditure amounting to Rs. 24.073 million was made against various works without inviting
tender.
(Rs. in million)
1 PHE (O.M) Mirpurkhas 2021-22 02 14.073
2 PHE (O.M) Ghotki @ Mirpur Mathelo 2021-22 08 10.00
Total 24.073
Audit is of the view that non-invitation of tenders for various works reflects negligence
on the part of the management besides, chances of uneconomical procurement cannot be ruled
out.
Audit recommends providing justification of non-invitation of tender.

AAR 2023-24
Excess payment on account of P.E Pipes–Rs12.289 million
As per SPPRA guidelines 2.9 Procurement Plan (Rule 11) “The procuring agency shall
ensure that funds are used for the purpose for which they are allocated and should use them
economically and efficiently without exogenous considerations.”
During audit of the office of Executive Engineer Public Health Engineering, Division
Mirpurkhas for the Financial Year 2021-22, it was observed that quantity (7,500 Rft) of P.E.
Pipe 18" Dia was required for which excavation for pipe line in trenches was estimated as
101,250 cft. On the other hand, quantity of 7,200 Rft of P.E. pipe was claimed against the
required quantity of 5,142 Rft as per executed quantity of excavation in trenches i.e. 69,419
cft. This resulted into excess and unjustified payment of Rs. 9.772 million against excess
quantity of PE pipes (2078 Rft). Details are as under:
Name of Scheme: A-2, Providing laying jointing P.E pipe 18" Dia from East Jamrao water
Works towards Madarsa (Jhurbi Turn) … Khipro Bus stand Booster Pump station For water
supply scheme Mirpurkhas (ADP 2037) M/S K.K. Associates (6th R.A) (C.V & Date: 35,
21/06/2022
Item of work Unit Qty. as per Qty. as Qty.of pipes Due Excess Qty of pipes
Estimate per Bill as per Excavation against excavation
in Trenches in Trenches
Excavation for pipe line %0 101,250 69,419
& Trenches Cft
Providing laying & Rft. 7,500 7,220 5142 2,078
jointing P.E. Pipe 18"
Dia.
Rate 4,023
Excess amount 8,359,794
Premium @19.98% 1,670,287
Escalation of @1087.3 of 2,259,409
Total 12,289,490
Audit is of the view that excess payment against PE pipes was made to the contractor
resulting in loss to the public exchequer.
The matter was reported to management from November 2022, but no reply was
received.
Audit requires recovery of the excess amount, besides fixing responsibility on persons
at fault.
AIR#04
AAR 2023-24
Unjustified payment on diesel generator without provision- Rs. 7.950 million
According to Article 84 of Audit code, it is an essential function of the Audit to bring

to light not only cases of clear irregularities but every matter which in its judgment appears to
involve improper expenditure or waste of public money or stores, even though the accounts
may be in order.
& Maintenance) Division, Badin for the Financial Year 2021-22, it was observed that an
amount of Rs. 7.950 million was paid to M/s Nazeer Construction on account of fuel charges
of 100 KVA diesel generator for operation of 10 nos. RO plants, but as per estimate, these RO
plants were shown to be operated on electricity only. Details are as under:
Reference: CV#96dated13/6/2022, 4th RA

Part of work Particulars Qty Rate Fuel cost
Rehabilitation/operation/maintena Fuel for 100 KVA generator 43800 115 5,037,000
nce of 65000 GPD 03 Nos RO Lubricant @ 1% of fuel 438 600 262,800
operated on electricity
Rehabilitation/operation/maintena Fuel for 100 KVA generator 21900 115 2,518,500
nce of 75000 GPD 03 Nos RO
operated on electricity
Lubricant @ 1% of fuel 219 600 131,400
Total 7,949,700
Electricity charges as per estimate 3,430,860
Difference 4,518,840
Audit is of the view that as per detailed estimate, the RO plants (10 Nos.) were to be
operated on electricity for which provision of electricity charges was kept in sanctioned
estimate. However, diesel was claimed against the same which was unjustified. Further, in
resulted additional burden of Rs. 4.519 million.
Audit requires the justification for the payment of diesel for generators against RO
plants operated on electricity.
AIR#02
AAR 2023-24
Unauthorized payment of premium paid on paver blocks- Rs. 5.833 million
Further, according to Chief Engineer (Development), PHED, Hyderabad office order

No.DB/PHED/51 of 2022 Dated 19-01-2022, “Ceiling of premium for incorporation in detailed
working estimates for letting out the works on schedule of rates have been re-fixed as under to
have effective financial control w.e.f. 01-12-2021:
Sr. No. Item Maximum premium ceiling
At par
14 Cement paving block
(No carriage will be allowed separately)
observed that an amount of Rs. 5.833 million on account of premium was paid on paver blocks
which was sanctioned at par by the Chief Engineer as per above criteria.
(Rs. in million)
Sr# Name of office F.Y AIR# Amount
01 PHE Division Kashmore 2021-22 10 4.375
02 PHE Division Mithi 2021-22 01 1.458
Total 5.833
Audit is of the view that the premium paid on paver block resulted in excess payment
to the contractor and loss to the exchequer.
reply was received.
Audit requires that unauthorized premium payment on paver block needs to be justified
besides, fixing of responsibility on the person(s) at fault.
(AIR#01)
AAR 2023-24
Unjustified execution of works – Rs. 4.896 million
Para-17 of C.P.W.A code states that, “The Divisional officer, as the primary disbursing
officer of division, is responsible not only for the financial regularity of the transactions of the
whole division but also for the maintenance of the accounts of the transactions correctly and in
accordance with the rules in force.”
During audit of the office of Executive Engineer, Public Health Engineering Division,
Tando Allahyar, for the Financial Year 20210-22, it was observed that an amount of Rs. 4.896
million was paid to the contractors under following schemes, but payment was made against
execution of works within one week of stipulated date of start. Furthermore, date of
measurement was not shown on R.A bills. Details are as under:
(Rs. in million)
Chq # & WO # & Actual date Paid
Name of Work Contractor
Date/RA Date/RA of start Amount
4438225 539 Providing installing RO Plant at topian
16-06-22 08-06-22 sprit trust academic campus M/s.
1st RA 08-06-22 Rashidabad Taluka Tando Allahyar Makkah 1.803
5000 GPD AT TDS up to 1000 tds to Builders
5000 tds District Tando Allahyar
4438224 538 Construction of RCC Nala I/C cc paver
M/s. Hafiz
16-06-22 08-06-22 09-06-22 Block for village in Deh Sajna Taluka 3..093
Riaz Ahmed
1st RA Jhando Mari District Tando Allahyar
Total 4.896
Audit is of the view that completion of schemes involving 24 months and recording of
the works in respective MBs in 08 days was unjustified, thus rendering the whole work
doubtful. It is perceived that payment was made only to draw funds in the last days of Financial
Year in advance to avoid lapse of budget.
received.
Audit recommends justification of the above payments.

AIR#2&3
AAR 2023-24
Unjustified expenditure due to abnormal increase in execution of earth work-Rs. 3.760

million
As per SPPRA guidelines 2.9 Procurement Plan (Rule 11), “The procuring agency shall
ensure that funds are used for the purpose for which they are allocated and should use them
economically and efficiently without exogenous considerations.”
According to the approved estimate of CC Blocks of scheme, “the work of borrow pit
excavation, earthwork compaction and lead for every 50’ ft. additional lead was to be executed
upto 23175 % 0 Cft.”.
Kashmore @ Kandhkot for the Financial Year 2021-22, it was observed that work of
Construction of surface drains and C.C Blocks for various Mohallas for Badani drainage
scheme, improvement & extension was awarded to M/s. Hassan Traders & Co. but during
execution, the quantities of Earthworks in Part-II (CC Block) was exceeded upto 1,452% above
the estimated quantity amounting to Rs.3.760 million. Details are as under:
Name of item Qty. utilized Qty. as per Excess Qty. Rate Amount Excess
estimate (%)
Borrow pit 359,657.57 23,175 336,482.57 2,117.50 712,502 1451.92%
excavation
Laying earth in 6" 359,657.57 23,175 336,482.57 354 119,115 1451.92%
thick layers
Extra lead for 359,657.57 23,175 336,482.57 5,039.00 1,695,536 1451.92%
every 50 ft. lead
Total 2,527,153
Premium 48.80% 1,233,251
G. Total 3,760,404
Audit is of the view that abnormal increase in quantity of earthworks reflected that
either estimates were defective or amount paid against excess quantity of earthworks was
unjustified.
Abnormal increase in quantity of Earthworks may be investigated.

(AIR#11)
AAR 2023-24
Excess payment on account of additional lead – Rs.3.620 million

According to Chapter No.1: Excavation & embankment: Item No.8 of the CSR 2012,
“Extra for every 50 ft. additional lead or part thereof (a) For earth work (Soft, ordinary, hard
and very hard @ Rs.100.78 %0Cft.”
Kashmore @ Kandhkot for the Financial Year 2021-2022, it was observed that the management
allowed additional 05 leads amounting to Rs. 4.023 million @ 100.78 per % cft for earthwork.
However, as per CSR 2012 this rate was applicable for %0 Cft instead of % Cft, which resulted
in excess payment of Rs. 3.620 million. Details are as under:
Rate per
Qty. Amount No. of Due Due Excess
Bill No. & Name of work & lead upto
executed allowed leads Rate amount payment
Dated contractor half mile
cft Rs. allowed Rs. Rs. Rs.
Rs.
Construction of C.C
drains, C.C Block,
06th R.A
Disposal Works, S/I
bill Dated
of pumping
16-06-2022
machinery, P.E 192,932.83 972,189 100.78 5 503.9 97,219 874,970
(M/s.
raising main for
Mehtab
under-ground
Traders)
drainage scheme @
Kashmore Town
Premium 36.38%
353,682 35,368 318,314
above
nd
02 R.A Construction of
bill Dated surface drains & C.C
16-06-2022 Block for various
(M/s. Mohallas for Badani, 359,657.57 1,812,314 100.78 5 503.9 181,231 1,631,083
Hassan district scheme
Traders & improvement &
Co.) extension
Premium 48.80%
884,409 88,441 795,969
above
Total 4,022,594 402,259 3,620,336
Audit is of the view that undue benefit was extended to the contractor by allowing rate
per% Cft. instead of per %0 Cft. which resulted into over-payment and sustained loss to the
public exchequer.
Audit recommends recover the excess amount paid and responsibility may be fixed on
person(s) at fault.
AIR#04
AAR 2023-24
Excess execution of steel - Rs. 2.896 million
According to Rule-44 of CPWA code, “The Divisional Officer is the primary disbursing
officer of the division, and all realizations and payments on Government account made by his
subordinates are made on his behalf and on his responsibility.”
Development Department, Government of Sindh, for the Financial Year 2021-22 it was
observed that the quantity of steel was executed in excess of the ratio of steel in RCC as
provided in the estimate/T.S. This resulted in additional burden of Rs.2.896 million to the
exchequer on account of excess consumption of steel.
(Rs. in million)
03 PHE Division Mirprkhas 2021-22 06 0.134
Total 2.896
Audit is of the view that execution of steel does not commensurate with the quantity of
related item (RCC) provided in the estimate which shows that excess consumption of material
was made to give undue favor to the contractor.
reply was received.
Audit recommends to enquire the matter and same may be reported to audit and
responsibilities may be fixed on persons at fault.
AAR 2023-24
Un-justified expenditure without land acquisition – Rs.42.998 million
According to Para-A, Flow Chart for Procurement of Works Annexure-O of the

Procurement Regulations (Works) of SPPRA, “Following are the activities prior to
Procurement Process:
(i) Development works:
A-I Conceivement of Development Scheme/Project.
A-II Preparation of PC-I/PC-II.
A-III Approval of PC-I/PC-II from Competent Forum.
A-IV Issue of Administrative Approval.
A-V Technical Sanction of Detailed Estimate.
A-VI Placement of Funds with Executing Agency.
A-VII Site Possession or Land acquisition.
A-VIII Preparation of Procurement Plan.”
Jacobabad for the Financial Year 2021-22, it was observed that expenditure of Rs. 42.998
million was incurred against the following drainage schemes, but land required for the schemes
was not acquired. Details are as under:
(Amount in rupees)
ADP Date of Date of start Area of Land cost Up to date
Name of scheme
No. approval of work Land as per PC-I expenditure
Urban Drainage Scheme,
2183 Taluka Garhi Khairo, 24-02-2015 June, 2016 03 Acres 1,500,000 39,998,000
District Jacobabad
Rural Drainage Scheme
for village Mir Wah Jagir,
2129 Dadu Dero, Sardar Dad 15-02-2022 May, 2022 0.5 Acres 500,000 2,500,000
Muhammad Jakhrani,
Taluka Jacobabad
3.5
Total 2,000,000 42,498,000
Acres
Audit is of the view that execution of work on the schemes without prior acquisition of
land shows poor planning and weak financial management.
Audit requires fixing responsibility on the person(s) at fault, besides taking remedial
measures.
AIR#02
AAR 2023-24
Irregular award of tender on the basis of expired call deposit – Rs. 1.800 million
As per 6.4 SPPRA guidelines (a)procuring agency may require the bidders to furnish a
bid security neither less than one percent nor exceeding five percent of the Bid Price/Estimated
Cost in the form of a call on deposit, pay order, demand draft or Bank guarantee issued by a
Scheduled Bank in Pakistan in favour of procuring agency, which shall remain valid for a
period of 28 days beyond the validity period for the bids in order to provide the procuring
agency reasonable time. (d)bid security of the successful bidder will either be returned, when
the bidder has signed the agreement and furnished the required performance security or will be
adjusted as part of retention money/security deposit/performance security.
Qambar-Shahdadkot for the Financial Year 2021-22, it was noticed that work amounting to Rs.
32.349 million was awarded to the contractor on submitting expired call deposit. In absence of
valid Call Deposit, the award of tender was irregular.
Call Call Deposit

Name of Work Contractor Bid Cost NIT Date
Deposit Date
Improvement & Extension of
28-08-2019
Drainage Scheme Sijawal Junejo 1,000,000
Taluka Sijawal Under Elimination Najamuddin
32,349,000 10-02-2020 20-08-2019
of Sewerage Discharging in Chandio 300,000
Irrigation Canals & Lakes in Sindh
20-08-2019
(Phase-I) 500,000
TOTAL 1,800,000
Audit is of the view that award of tender against the expired call deposit reflects that
undue favor was given to contractor and government interest was not safeguarded.
Audit requires justification of the matter.

AIR#02
AAR 2023-24
Irregular execution of works due to abnormal variation in quantities - Rs 1.242 million
According to Appendix 18-A of Sindh Financial Rules, Volume-I, states that “every
officer should realize fully and clearly that he will be held personally responsible for any loss
sustained by government through fraud or negligence on his part and that he will also be held
responsible for any loss arising from fraud and negligence on the part of any other government
office to the extent to which it may be shown that he contributed to the loss by his own actions
or negligence”.
Badin for the Financial Year 2021-22, it was observed that work on Construction of storage
tank, sump well, inter connection for I&E of Urban W.S scheme Kadhan city taluka & Dist:
Badin was carried in which following issues were observed:
1. Cement plaster was shown executed 129% above the estimates, whereas pacca brick
work was executed only 25% above the estimates. Thus, 104% executed quantity
of Cement plaster was un-justified.
2. Dry Brick on edging was 30% less executed than the estimated quantity in T.S.
3. Part-B work Construction of Sump well was also not executed.
Name of Scheme: Construction of storage tank, sump well, inter connection for I&E of Urban
W.S scheme Kadhan city taluka & Dist: Badin. ADP-2063, M/S Babar Musti Khan,
CV#11dated 19/4/2022 6th RA
Item of works Qty. as Qty. as Excess Excess Rate Amount
per Bill per Est. Execution %
Pacca Brick work 1:6 3,767 3,012 755 25% 11,948 90,207
Cement Plaster 1:4 29,737 13,009 16,728 129% 2,198 367,681
Cement Plaster 1:6 29,737 13,009 16,728 129% 2,207 369,187
Apply floating coat of 22,867 13,791 9,076 66% 660 59,902
cement
Dry Brick on edge paving 11,768 16,904 (5,136) -30% 2,207 (113,352)
Sub-total 773,625
Premium 42.90% 331,885
Total 1105,510
Construction of Sump 0 136,134
well
1,241,644
Audit is of the view that execution of items of work with abnormal variation in
quantities than estimate, stands irregular.
Audit requires proper justification for the variation in quantities or the approval for the
revised quantity be produced to audit.
AIR#4,5&6
AAR 2023-24
Excess execution of RCC work– Rs 1.073 million
According to appendix 18-A of the Sindh Financial Rules, Volume-I, “Every officer
should realize fully and clearly that he will be held personally responsible for any loss sustained
by government through fraud or negligence on his part and that he will also be held responsible
for any loss arising from fraud and negligence on the part of any other government office to
the extent to which it may be shown that he contributed to the loss by his own actions or
negligence”.
observed that payment of Rs. 1.073 million was made in excess on account of RCC work
executed over and above the RCC and mild steel Ratio as provided in the estimates/T.S. This
resulted into excess execution of RCC work.
(Rs. in million)
02 PHE Division Mirprkhas 2021-22 03 0.241
03 Total 1.073
Audit is of the view that due to excess execution of RCC work against steel used, this
could result in defective and weak structures.
reply was received.
Audit recommends justification of the above irregularity.
AAR 2023-24
Excess expenditure over & above 5% of the estimate – Rs. 0.716 million
According to Para 532 and 767 of PWD Manual, Volume-I, “A revised estimate
containing the facts and causes of revision must be submitted when sanctioned estimate is likely
to be exceeded by more than 5% either from the rate being found insufficient or from any other
cause whatever”.
During audit of the office of Executive Engineer Public Health Engineering Division
Mithi for the Financial Year 2020-2021, it was observed that an expenditure of Rs. 0.716
million was made against the execution of works in excess of the prescribed limit of 5% of the
technical sanction. Details are as under:
(Rs. in million)
Bid Amount
Name of Work Contractor Cost Paid Excess %
Construction of pump house sump well and compound
wall providing and installing pumping machinery of 40
Mustafa
BHP @ 7 mile Morri for change of source and 9.87 10.586 0.716 7.254
Enterprises
Rehabilitation of existing urban water supply scheme
diplo Tharparkar ADp-2046
Audit is of the view that the expenditure beyond the permissible limit of 5% of the
estimate without revising the original technical sanction is contrary to the prescribed rule and
is held irregular.
received.
Audit recommends providing justification for the matter besides, fixing responsibility
on the person(s) at fault.
(AIR#02)
AAR 2023-24
Non-crediting of Call Deposits into treasury –Rs. 13.556 million
According to Para-63 of CPWA Code, “When money is received by Government

officers on behalf of the Government it should be at once brought to account. Furthermore, as
per Rule-75 and Rule-76 of CPWA code, the officer in-charge of call deposit should keep a
book in Form-4 in which all remittances to the treasury should be entered upon and account of
call deposit transactions should be maintained in form-I of call deposit as regular arrangement.”
During the audit of the following office of Public Health Engineering & Rural
Development Department Government of Sindh, for the Financial Year 2021-22, it was
observed that an amount of Rs.13.556 million was received as bid security/call deposits from
contractors in shape of pay orders. However, the management retained the Call Deposit rather
than depositing the same into treasury as per rule.
(Rs. in million)
1 PHE Division, Mithi 2021-22 04 6.356
2 PHE Division, Qambar Shahdadkot 2021-22 05 5.631
3 PHE Division, Tando Allahyar 2021-22 05 1.569
Total 13.556
Audit is of the view that retaining government money i.e Call Deposit instead of
depositing into treasury resulted in violation of rules and procedures.
reply was received.
Audit recommends prompt deposit of the amount as specified.

AAR 2023-24
Non-crediting of receipt in Form-78 – Rs. 8.021 million

As per Rule-26 of General Financial Rules, “It is duty of controlling officer to see that
all sums due to Government are regularly and promptly assessed, realized and credited in public
account.”
During audit of following offices of Public Health Engineering and Rural Development
Department, Government of Sindh for the year 2021-22, it was observed that an amount of
Rs.8.021 million was deducted on account of income tax from various contractors. However,
the same was retained under Form-78 and was not credited into the government account.
(Rs. in million)
Sr# Name of Department particulars F.Y AIR# Amount
1 PHE (O.M) Sujawal Income tax 2021-22 07 2.469
Sales Tax 0.114
SRB 1.391
2 PHE (O.M) Sanghar Income tax 2021-22 09 3.241
3 PHE (O.M) Nushero Feroze Income tax 2021-22 09 0.752
4 PHE (O.M) Mirpurkhas I,Tax 2021-22 09 0.054
Total 8.021
Audit is of the view that due to non-crediting of the revenue on a timely basis, financial
interests of the government were not safeguarded.
Audit recommends the punctual deposit of government revenue into treasury besides,
fixing responsibility on the persons at fault.
AAR 2023-24
Non/less recovery of Stamp Duty – Rs.3.310 million

According to Para 22-A of Stamp Act, “It is duty of the Competent Authority to recover
the Stamp Duty and affix the same, while execution of Agreement @ 0.35 paisa per hundred
rupees of the value of the Agreement or against tender cost.”
observed that contracts for various works were executed, but Stamp Duty amounting to
Rs.3.310 million was not obtained from the contractors at prescribed rates.
(Rs. in million)
Sr# Name of Department Year AIR Amount
PARA#
2 PHE Division-II, Ranipur @Khairpur 2021-22 05 0.580
5 PHE Division, Tando Allahyar 2021-22 07 0.111
6 PHE Division, Mirpurkhas 2021-22 07 0.074
7 PHE (O.M) Larkana 2021-22 05 0.359
8 PHE (O&M) Sanghar 2021-22 08 0.031
9 PHE (O.M) Ghotki @ Mirpur Mathelo 2021-22 01 0.010
Total 3.31
Audit is of the view that non-recovery of Stamp Duty resulted into non-realization of
government revenue.
reply was received.
Audit recommends prompt recovery of Stamp Duty besides, fixing responsibility on

the person(s) at fault.
AAR 2023-24
Non-recovery of various taxes at the prescribed rates - Rs.2.151 million
According to Taxable Services as per Second Schedule to the Sindh Sales Tax on
Services Act, 2011, Part A, Sindh Revenue Board, Government of Sindh, vide Tariff Heading-
9813.4990, “Services provided or rendered by banking companies, insurance companies,
cooperative financing societies, modarabas, musharikas, leasing companies, foreign exchange
dealers, non- banking financial institutions and other persons dealing in any such services -
Other services not specified elsewhere, tax @ 13% is to be paid accordingly.”
According to Notification issued by Sales Tax Department for Sales Tax Special
Procedure (withholding) rules, 2007 vide letter No S.R.O 77 (I) 2008 dated 2301-2008,
“Withholding agent shall deduct an amount equal to 1/5 of the total sales tax shown in the sales
tax invoice issued by the supplier and make payment of the balance amount to him. If sales tax
invoice is not provided then 17% tax would be deducted.”
According to section 153 & 233 of Income Tax Ordinance 2001, as amended from time
to time, “Any person responsible for making any payment in full or in part on account of supply
of goods or services sanctioned to the auction of contact with Government or local authorities,
etc.”
During audit of following offices of Public Health Engineering & Rural Development
Department, Government of Sindh for the Financial Year 2021-22, it was observed that an
amount of Rs.2.151 million, pertaining to Income Tax and SST was either not or less deducted
while making payments to the contractors.
(Rs. in million)
Sr# Name of Department Year AIR# Particulars Amount
1 PHE Division, Badin 2021-22 08 SST 1.911
2 PHE Division, Mirpukhas 2021-22 10 Income Tax 0.185
3 PHE Division, Kashmore @ Kandhkot 2021-22 02 SST 0.055
Total 2.151
Audit is of the view that due to non-deduction of government taxes, undue favor was
extended to the contractors besides, non-realization of the government revenue.
reply was received.
Audit requires expeditious recovery of objected amount.

Proposed Draft Para# 27
AAR 2023-24
Abnormal delay in completion of Schemes/works
As per SPPRA guidelines 2.9 Procurement Plan (Rule 11). Procuring agency shall take
into account the following while reviewing and updating the plan: (i) estimates of time
requirements, (ii) availability of funds, (iii) assumptions about institutional capacity,
(iv)changing priorities and (v) other factors that require plan adjustments for the success of the
project. Such required adjustments will not invalidate the plan if made for improving
following schemes were approved at the cost of Rs.551.436 million and expenditure was also
incurred thereof, but despite lapse of several years, the schemes could not be completed.
(Rs. in million)
Sr# Name of Name of Scheme Work Completion Cost AIR#
Department awarded Period
1 PHE Division, Drainage Scheme 2018-19 June-2022 433.371 10
Qamber- elimination of discharge
Shahdadkot water
2 PHE Division-II, Drainage scheme village 2017-18 02 years 99.423 01
Ranipur Dargah Haji Hussain
@Khairpur Shah Jilani ,Pacca Chang
Taluka Faiz Gunj
(SDG#6)
3 PHE Division-I C.C block & Drainage 2013-14 02 years 18.642 01
Khairpur scheme Abdul Aziz
Jagirani UC Macheyon
Taluka & Distt.
Khaiprpur
Total 551.436
Audit is of the view that due to abnormal delay in completion of schemes, general public
was deprived of the benefits of scheme whereas on the other hand, high chances of structural
damage to the uncompleted physical structure due to time over-run and weathering effects
could not be ruled out.
reply was received.
Audit requires inordinate delay in completion of the schemes may be justified besides
fixing of responsibility on the person(s) at fault.
AAR 2023-24
Non-imposition of penalty on delay in completion of works- Rs.76.065 million
As per para-10.3(c) of contract, Liquidities damages shall be deducted from the contract
amount for every day or part of a day, which will elapse between the dates on which the
prescribed time expired and the date the work is completed at the rate specified in the contract
agreement. The amount of the liquidated damages for each day of delay in completion of the
whole of the works, or if applicable for any section thereof, shall be a sum equal to 5 to 10 %
(it is to be mentioned in the agreement) of the estimated cost of the works divided by one fourth
of the number of days specified as completion time.
various works were awarded to the contractors, but the same were neither completed within
stipulated time period nor penalty @ 10% amounting to Rs.76.065 million was imposed on the
defaulting contractors:
(Rs. in million)
1 PHE Division, Mirpurkhas 2021-22 09 22.427
2 PHE Division, Jacobabad 2021-22 05 15.151
3 PHE Division-II, Khairpur @ Ranipur 2021-22 08 8.443
6 PHE (O.M) Sanghar 2021-22 10 21.706
7 PHE (O.M) Dadu 2021-22 09 1.169
Total 76.065
Audit is of the view that management failed to safeguard the interest of government,
consequently extending undue benefit to the contractors.
reply was received.
The above irregularity may be justified to audit.

AAR 2023-24
Doubtful Installation of submersible pumps over unidentified areas - Rs. 73.813 million
According to Appendix-18-A, Section-I of Sindh Financial Rules, Volume-II, “Means

should be devised to ensure that every Government servant realizes fully and clearly that he
will be held personally responsible for any loss sustained by Government through fraud or
negligence on his part, and that he will also be held personally responsible for any loss arising
from fraud or negligence on the part of any other Government servant to the extent to which it
may be shown that he contributed to the loss by his own action or culpable negligence”.
During audit of the office of Executive Engineer Public Health Engineering Division,
Mithi for the Financial Year 2021-22, it was observed that an amount of Rs.73.813 million was
paid to various contractors on account of installation of submersible pumps without mentioning
areas/villages. Details are attached.
Audit is of the view that in absence of the detailed estimate sanctioned, detailed
measurement, invoices of pumps supplied by the contractor, the payment made to the
contractor could not be authenticated.
received.
Audit requires justification in the matter.

AIR#03
AAR 2023-24
Un-authorized approval of drainage scheme for the village not included in census –
Rs.28.390 million
According to the Modified PC-I of the scheme, “The drainage scheme was approved in
@ Sr. No. of ADP 2247 (2021-2022) approximately with current population of 780 persons
multiplied with growth rate of 2.64% i.e., 1,100 persons upto A.D 2033 against the
un-authenticated population certificate issued by the Secretary, Union Council, Saifal, Taluka
Tangwani, District Kashmore @ Kandhkot without existence in the census, 2017.”
Kashmore @ Kandhkot for the Financial Year 2021-2022, it was observed that the work
amounting to Rs.28.390 million for execution of drainage scheme for village Amanullah
Banglani, Taluka Tangwani, District Kashmore @ Kandhkot was awarded to the contractor,
whereas the said village did not exist as per the 2017-18 census. Hence, priority for providing
drainage facilities to the existing town-wise population of the district was not set on the basis
of merit. Furthermore, evidence regarding acquisition of 0.5 Acres of land was also not found.
(Rs. in million)
W. O No. &
Name of scheme & contractor Amount
Date
Drainage scheme for village Amanullah Banglani,
322 Dated 15-
Taluka Tangwani, District Kashmore @ Kandhkot 28.390
04-2022
(M/s. Faheem & Ilyas Contractors)
Audit is of the view that work was awarded without verifying census data authenticated
by the Pakistan Bureau of Statistics which resulted in unjustified execution of work.
Audit requires justification in the matter.
AIR#03
AAR 2023-24
Variation in figures between monthly account and progress report- Rs. 11.937 million
As per Para 26 of the GFR Volume-I updated edition 2019 “Subject to any special
arrangement that may be authorized by competent authority with respect to any particular class
of receipts, it is the duty of the departmental Controlling officers to see that all sums due to
Government are regularly and promptly assessed, realized and duly credited in the Account.
They should accordingly arrange to obtain from their subordinates’ monthly accounts and
returns in suitable form claiming credit for so much paid into the treasury or otherwise
accounted for and compare them with the statements of treasury credits furnished by the
Accountant General, to see that the amounts reported as collected have been duly credited in
the Account.”
observed that variation in expenditure amounting to Rs. 11.937 million was found between
monthly account and progress report for the month of June-2022. Details are as under:
(Rs. in million)
Name of Office Name of Scheme Expenditure as Expenditure as Variation AIR#
per Progress per Monthly
Report Account
PHE (O&M) (LN-0540) Drainage
89.281 95.733 6.452 01
Division Larkana Schemes
PHE (Dev) Urban Drainage
Division Scheme, Taluka
Jacobabad Garhi Khairo, 37.230 39.998 2.768 03
District Jacobabad
(ADP No.2183
PHE (Dev) Provincial ADP 287.203 284.782 2.421
Division
09
Ranipur/Khairpur- W/S & D/S 147.732 147.436 0.296
II
Total 11.937
Audit is of the view that due to variation in figures, the monthly accounts of the Division
does not present true and fair picture.
Audit recommends that reconciliation be made under intimation to audit and measures
should be taken to avoid such lapses in future.
Proposed Draft Para# 32
AAR 2023-24
Non-execution of various works - Rs. 6.166 million

As per Rule-128 of Sindh Budget Manual and Para-95 of General Financial Rules Vol-
I “the Drawing and Disbursing Officer is personally responsible for surrendering the savings
to the Government before the close of the Financial Years. Further, According to Para 95 of
General Financial Rules Volume-I, all anticipated savings should be immediately surrendered
to Government without waiting till the end of the year.”
During audit of the office of Executive Engineer, Public Health Engineering Division-
I Khairpur, for the Financial Year 2021-22, it was observed that funds amounting to Rs. 6.166
million were available under various schemes, but the same remained un-utilized till the closing
of the Financial Year. Details are as under:
(Rs. in million)
S. Name of Scheme Release Expenditure
No Budget
01. Water Supply Scheme of Lashari, Bhatti and Hindu Mohalla for Village 5.000 0
Pharyaro, Taluka Nara.ADP-12
02. Water Supply Scheme for Village Rajpari (Mohalla Karam Hussain 0.566 0
Kubbar) U/C Goonderiro. ADP-19
03 Construction of Pakka Watercourse No. 19-L Sathyo wah East 0.600 0
Division, Khairpur (200 Mtr). ADP-50
Total 6.166
Audit is of the view that non-utilization of the funds resulted in blockade of

development funds.
The matter was reported to the department from November 2022, but no reply was
received.
Audit require justification for no initiate taken against execution of above works.
AIR#02
AAR 2023-24
Unauthorized execution of works beyond jurisdiction – Rs. 2.062 million
As per Appendix 18-A of Sindh Financial Rules Vol-I, “Every Government servant
realize fully and clearly that he will be held personally responsible for any loss sustained by
Government through fraud or negligence on his part and that he will also be held personally
responsible for any loss arising from fraud or negligence on the part of any other Government
servant to the extent to which it may be shown that he contributed to the loss by his own action
or culpable negligence.”
During audit of the office of Executive Engineer Public Health Engineering Division-
II Khairpur @ Ranipur for the Financial Year 2021-22, it was observed that various schemes
were executed against which an expenditure of Rs. 2.062 million was made which were beyond
the jurisdiction of XEN PHE. Details are as under:
(Rs. in million)
NIT # Name of Work Name of work Jurisdiction Amount
dt. contractor order#
Const. of Public park along with 1.125
M/s R.M _ boundary wall at Barkatabd Ranipur TMA/MC
Associates Taluka Sobhodero.
Const. of Lavatory and Wazoo Khana Auqaf & 0.937
530 dtd. M/s Shazeeb 871 dt. at Dargah Ranipur Sharif Taluka Religious
29.04.22 Mehdi 08.06.22 Sobodero. department
Total 2.062
Audit is of the view that works were executed beyond jurisdiction and without obtaining
NOC from the concerned departments. Thus, chances of duplicate execution of works by
different agencies cannot be ruled out.
received.
Audit recommends justification for the above matter besides.
AIR#06
AAR 2023-24
Variation in figures of taxes between SAP Data and monthly account- Rs2.044 million
As per Para 26 of the GFR Volume-I updated edition 2019 “Subject to any special
arrangement that may be authorized by competent authority with respect to any particular class
of receipts, it is the duty of the departmental Controlling officers to see that all sums due to
Government are regularly and promptly assessed, realized and duly credited in the Account.
They should accordingly arrange to obtain from their subordinates monthly accounts and
returns in suitable form claiming credit for so much paid into the treasury or otherwise
accounted for and compare them with the statements of treasury credits furnished by the
Accountant General, to see that the amounts reported as collected have been duly credited in
the Account.”
Executive Engineer, Public Health Engineering (Operation & Maintenance) Division,

Naushero Feroze for the Financial Year 2021-22, it was observed that variation amounting to
Rs. 2.044 million was noticed in the figures of income Tax and SST receipts between in SAP
data and monthly account of the division. Details are as under:
(Rs. in million)
Head of Account As per SAP As per Account Variation
Income Tax 1.522 2.452 0.930
SST 3.473 4.587 1.114
2.044
Audit is of the view that due to the variation in figures, the monthly accounts of the
Division did not present true and fair picture.
The matter was reported to department in the month of April 2022, but no reply was
received
Audit recommends that reconciliation be made under intimation to audit and measures
should be taken to avoid such lapses in future.
(AIR#06)
AAR 2023-24
Poor performance due to non-functioning of R.O Plants & Drainage systems
According to Section (I) of Appendix 18-A of Sindh Financial Rules Volume I & II
"Means should be devised to ensure that every government servant realizes fully and clearly
that he will be held personally responsible for any loss sustained by Government through fraud
or negligence on his part, and that he will also be held personally responsible for any loss
arising from fraud or negligence on the part of any other Government servant to the extent to
which it may be shown that he contributed to the loss by his own action or culpable negligence”.
During audit of the following offices of Public Health Engineering and Rural
Development Department, Government of Sindh for the year 2021-22, it was observed that 312
Nos. of R.O & UF Plants as well as 54 drainage schemes were non-functional in following
districts due to various reasons.
Sr# Name of Department F.Y AIR# Non-functioning

1 PHE (O.M) Khairpur 2021-22 11 85 RO/UF plants and 54
Drainage Schemes
2 PHE (O.M) Sanghar 2021-22 06 118 RO plants&35 UF plants
3 PHE (O.M) Larkana 2021-22 02 26 RO/UF plants
4 PHE (O.M) Jacobabad 2021-22 03 25 RO/UF plants
5 PHE (O.M) Sujawal 2021-22 08 05 RO/UF plants
Audit is of the view that non-functioning of Water supply and Drainage schemes, public
was deprived of the facilities.
Audit recommends that priority should be given to complete old schemes and steps
should be taken for functionality of RO plants.
AAR 2023-24
Un-authorized retention of dual vehicles
As per notification of Services, General Administration & Coordination Department,

Government of Sindh Karachi vide No. SO(CTC) (SGA&CD)/4(125)/2018 dated September,
7th 2016 that, “The Competent Authority has taken a serious view of the fact that majority of
the officers are possessing more than one official vehicle, beyond their entitlement, which is,
however, a serious issue and warrants your immediate intervention in order to ensure good
governance in the province.”
Badin for the Financial Year 2021-22, it was observed that two vehicles were retained by the
XEN. Details are as under:
S# Division Allotment Designation Make & Model Reg. No.
Un- registered
PHE, (Operation & Mr. Rajo Suzuki Mehran
1 Xen. (Engine No.
Maintenance) Qureshi Car 2019
PKB 754230)
Mr. Rajo
2 PHE. Badin Xen. Potohar Jeep GS-2233
Qureshi
Audit is of the view that retention of two vehicles by one officer beyond entitlement
was un-justified.
Audit requires justification for the possession of two vehicles or the one vehicle
immediately be surrendered to the department.
AIR#01

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Name of Department: PHE & RDD

Proposed Draft Para#01

Audit requires justification regarding non-production of record, besides fixing of

Unjustified payment on account of management charges for RO Plants – Rs 2.720 million

According to Article 84 of Audit code, it is an essential function of the Audit to bring

CV# 96 Date 13/6/2022, 4th R.A

Irregular award of work on single bid basis – Rs.509.97 million

Splitting of work to avoid tender– Rs. 158.632 million

Doubtful expenditure on replacement of RO Plant parts – Rs.125.659 million

Audit requires justifications of the above irregularities.

Unjustified part-rate payment without execution of actual woks-Rs.112.017 million

According to Sr. # 4 of Schedule of Rates (Composite) for finished items of works,

Non-invitation of tender – Rs. 24.073 million

Audit recommends providing justification of non-invitation of tender.

Excess payment on account of P.E Pipes–Rs12.289 million

Unjustified payment on diesel generator without provision- Rs. 7.950 million

According to Article 84 of Audit code, it is an essential function of the Audit to bring

Reference: CV#96dated13/6/2022, 4th RA

Further, according to Chief Engineer (Development), PHED, Hyderabad office order

Unjustified execution of works – Rs. 4.896 million

Audit recommends justification of the above payments.

Unjustified expenditure due to abnormal increase in execution of earth work-Rs. 3.760

Abnormal increase in quantity of Earthworks may be investigated.

Excess payment on account of additional lead – Rs.3.620 million

Excess execution of steel - Rs. 2.896 million

Un-justified expenditure without land acquisition – Rs.42.998 million

According to Para-A, Flow Chart for Procurement of Works Annexure-O of the

Call Call Deposit

Audit requires justification of the matter.

Irregular execution of works due to abnormal variation in quantities - Rs 1.242 million

Excess execution of RCC work– Rs 1.073 million

Non-crediting of Call Deposits into treasury –Rs. 13.556 million

According to Para-63 of CPWA Code, “When money is received by Government

Audit recommends prompt deposit of the amount as specified.

Non-crediting of receipt in Form-78 – Rs. 8.021 million

Non/less recovery of Stamp Duty – Rs.3.310 million

Audit recommends prompt recovery of Stamp Duty besides, fixing responsibility on

Non-recovery of various taxes at the prescribed rates - Rs.2.151 million

Audit requires expeditious recovery of objected amount.

Abnormal delay in completion of Schemes/works

Non-imposition of penalty on delay in completion of works- Rs.76.065 million

The above irregularity may be justified to audit.

According to Appendix-18-A, Section-I of Sindh Financial Rules, Volume-II, “Means

Audit requires justification in the matter.

Non-execution of various works - Rs. 6.166 million

Audit is of the view that non-utilization of the funds resulted in blockade of

Unauthorized execution of works beyond jurisdiction – Rs. 2.062 million

Executive Engineer, Public Health Engineering (Operation & Maintenance) Division,

Poor performance due to non-functioning of R.O Plants & Drainage systems

Sr# Name of Department F.Y AIR# Non-functioning

Un-authorized retention of dual vehicles

As per notification of Services, General Administration & Coordination Department,

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