According to a source at OPMCM, arrears at the PAF were recorded at Rs 160 million in fiscal year 2066/067 BS alone. The total amount of arrears came to light following an audit conducted by the Office of Auditor General (OAG).[break]
Of the total arrears, OAG has suggested to the government that Rs 41 million has to be recovered from those to whom PAF paid out the money without following legal norms and procedures.
PAF Vice-chairman Bidhhyadhar Mallik told Republica that they are trying their best to control the arrears. “There are arrears at the PAF due to some technical errors. However, the actual arrears are low. We will make maximum effort to control them,” he added.
“The trend of flouting legal provisions while spending money has been increasing within the PAF,” the source said, adding, “The total amount of arrears is enough to claim that financial irregularities are rampant within the organization.”
The report prepared by the OAG suggests the government recover Rs 41 million from PAF, pointing out that the organization awarded contract agreements to various companies without adhering to existing legal provisions.
“It has been found that Rs 41 million was paid to various contractors and companies even in the absence of bills, progress reports and other required documents which, according to law, companies must furnish to claim the amounts,” concludes the report.
The report shows that Rs 100 million, out of the total arrears, was spent in an irregular fashion while about Rs 7.7 million was spent in the absence of required documents.
“Rs 7.7 million was spent in absence of required evidence. Spending money without documents and evidence being produced means that the amount was either misused of spent without following the procedures,” reads the report.
Similarly, Rs 14.6 million was spent as advance allowance for PAF officials. “PAF gave Rs 14.6 million to its officials as advance amounts but couldn´t get the amounts reimbursed as the officials failed to furnish bills and other required documents,” states the report.
According to the OAG report, PAF has failed to be reimbursed Rs 30.6 million by the World Bank. “PAF spent Rs 30.6 from the state treasury on various activities but failed to be reimbursed by the World Bank,” said the source, adding, “The Bank didn´t reimburse the money, saying that work was not accomplished as per agreement.”
The law states that an organization concerned has to clear its arrears by collecting missing documents if any. If the organization fails to clear the arrears, the officials concerned have to reimburse the money.
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