Audit Report Reveals Massive Mismanagement in Pakistan Railway Funds

The Auditor General of Pakistan (AGP) has detected misappropriation, irregularities, mismanagement and operational inefficiencies of over Rs. 13 billion in Pakistan Railways, which is facing serious financial crisis.
The audit report on the accounts of Pakistan Railways for Audit Year 2015-16, a copy of which is available with ProPakistani, revealed nine cases of theft of Railway material valuing Rs 139 million, four cases of embezzlement of Railway revenue amounting to Rs 24.65 million, inordinate delay as compared with standard time set by the Railway management in repair of rolling stock caused loss of Rs 39.78 million while an expenditure of Rs 3497.23 million was incurred on 75-DE locomotives project without achieving any progress.
The AGP recommended that each case of embezzlement of Railway revenue, shortage and theft of material should be investigated at an appropriate level for fixing of responsibility and taking remedial measures to avoid recurrence.
Misappropriation due to theft of material caused a loss of Rs 139 million, whereas the report further detected loss of Rs 31 million due to deficiencies in Coaching and goods stock, Rs 29 million due to suspected bogus expenditure incurred without documentary evidence and Rs 24.65 million embezzlement by the staff of Commercial department.
Irregularities of Rs 4147 million due to un-titled 4147 acre Railway land in Dera Ghazi Khan was detected by the Audit report. It further found irregular expenditure of Rs 3497 million on account of 75 DE Locos project, unauthorized reduction of approved scope of work and irregular transfer of material to other project/units caused Rs 1300 million, illegal/unjustified procurement o breakdown cranes caused Rs 1142 million, Rs 807.57 million due to less recovery of revenue share of Hazara express and Rohi express from PRACS.
The report further states that unauthorized procurement of physical assets caused Rs 60.39 million, irregular award of catering contracts by PRACS without fair competition and bidding in violation of PPRA rules 2004 caused Rs 58.94 million, irregular splitting up of similar nature works caused Rs 42.62 million, Rs 44.34 million unjustifiable payment of overtime, extra expenditure of Rs 40.40 million on procurement of ballast by road, Rs 37.96 million loss of revenue earnings due to un-authorized utilization of Railway land and income generated thereon, irregular payment of Rs 26 million due to irregular payment due to grants of extension without approval of the competent authority, Rs 14.61 million loss due  to non-replacement of rejected material, Rs 12.65 million irregular utilization of Railway land revenue and non-clearance thereof, Rs 12.63 million irregular transfer of PSDP, Rs 12.52 million loss due to undue favour to officers by monetizing the 26 vehicles of excess horse power in violation of monetization policy, Rs 11 million loss due to non-execution of fresh agreements, Rs 10.29 million irregular/unjustified expenditure on account of TA/DA, Rs 10 million irregular expenditure on account of pay and allowances.
The report also detected blockage of Rs 641.45 million capital due to non-disposal of surplus material, Rs 187.76  million due to non-disposal of scrap, Rs 185 million per annum loss due to speed restriction, Rs 41.95 million due to unnecessary procurement/ non-utilization of material resulting in blockage of capital, loss of Rs 39.78 million due to potential earnings due to unnecessary detention of wagons, Rs 37.9 million loss due to inefficiency of Railways management, Rs 30 million loss due to non-replacement of defective material, Rs 26.61 million loss due to purchase of stone ballast at higher rates, loss of Rs 25.24 million due to detention of trains and theft of overhead wires, loss of Rs 18.7 million due to non-recovery of recoverable from different entities, loss of Rs 63 million due to deduction of dip shortage by PSO from freight bills, Rs 48.9 million loss due to excessive incidents of burnings of rolling stock, Rs 32.23 million loss due to un-authorized utilization of Railways land and Rs 48.76 million loss caused due to unauthorized occupation of Railway land.

  • There is level of biasness and ProPak crossed it really in a flying colors.,.

    *Why is this Audit Report is on ProPak any way as it covers mostly IT news from pakistan
    *You put an article about expiring domain of Pakrail .com.,. you didnt told
    your reader about new domain in the same week of Pakrail. gov .pk
    *Now yesterday Pakrail started e-Ticketing you didnt bother putting that on your site but ends up showing this Audit report.,,

    yeah bad things should be shared but why not other good things ?

      • whats the point ? it still doesnt comply my above comments just because things have been announced multiple times its not worth mentioning ?

        and that eTicket system you mention in your above article two weeks back was just a booking thing where you simply get a Reference of your booking online and you have to pay that manually on the window specifically on the station’s booking office, do you really think the current online ticketing system has something worth mentioning than that in 200x

        awesome man.,, just because people come to your site and read your stuff doesn’t mean you are always right

        • جب بلور اسی ریلوے کا بلادکار کر رہا تھا تو کبھی ایک خبر نہیں دی ہو گی کوئی احتجاج نہیں کیا ہو گا اب بنیادی تکلیف یہ ہے کہ ریلوے خسارے سے نکل کر فائدے میں کیوں جا رہی ہے ….

          • Railway going to profit ? WOW

            Kindly share a credible/neutral source, and NO, official site of some political party, govt sites and ptv/geo are not authentic at all.

            U do realize that AGP is a govt institution mandated with Audit of finances of govt institutions

        • Mr SSyar, I agree to ur point that if there are any good news of PR they should be shared as well. Although u alleged that AAMIR is biased, but in the process u counter with bias on ur part as well, let me explain further.

          > U r correct that PP shud have reported on eTicketing and PR Domain as well.

          > For long PP has been publishing non IT News so how come u came realize of this “non IT” post only.

          > Considering everything coming out of a “certain person” to b biased when he is reporting a fact/report is merely bias on ur part.

          > Y so angry on the news itself. Also u did not post a single comment on the news itself should i assume that u think it was some how a “propaganda” when in fact it merely is an audit report from another govt institution AGP. Y shoot the messenger when u dont like the message.

          Its a universal fact that govt institutions/bureaucracy and govts are criticized heavily all around the world for mis management and bad governance and this alone is considered “beauty of democracy” so that they should not waste tax payers hard earned money but u dont seem to like it which is a non democratic attitude in itself.
          U have the power of “choice” if u dont like some thing dont bother to view/read it. just like people who dont like GEO news dont bother to view/tune it at all.

          • well firstly u also didnt comment on the article instead u replied mine
            i have commented before on ProPak for non IT articles look at them again ull find my comments

            if you cant share a good news that is where your biasness will be shown,., read my comments again and try to understand what i am actually saying at the first place
            so what if ProPak is propagating poor image of PakRail as PakRail is improving gradually

            and No its not about the choice its about; what and how you are providing the information.,

            ok fine no IT news and i dont have any issues looking at this audit report ultimately(they also need clicks[ads revenue]), but if you can share this report then you should share other things about the specific corporation as well

            • OK. Mr “hard to understand” let me first comment on the news itself, as per ur

              Like all other Govt institutions, Pak Railway also suffers from massive corruption and poor management etc. They are far away from being called an “average” Railway system even regionally.They badly need a massive operational overhaul and no cosmetic changes like e-ticketing and web domain etc(so called good news, don’t contribute to efficient corruption free management/operations within PR and so does not count at all). People can no longer be fooled now and will only soften once they see some major operational changes internal to PR, and NO “Purchase of locomotives” and “external funding” with current corrupt and incompetent management will further deteriorate the situation.
              Sec. if you want that cosmetic changes like e-ticketing etc should be reported as PR is growing at a rate “faster then speeding bullet” then u my friend are clearly in the wrong location. May i suggest you to kindly refer to PR railway web site, Ruling party’s web/facebook/twitter and PTV/Geo etc. rest assured u will have a cozy sleep. The choice for u as a viewer/reader is to change the source, if the
              content does not suit ur taste, and weather u like it or not the reporter has already made a choice of reporting only the news that counts.
              Leme elaborate further on ur supposed “biasness” by an example. Suppose there is a student who fails in 7 out of 8 subjects and u insist that it should be reported he passed in 1 and is on his way to harvard/mit only then the news of failing in 7/8 subjects will be justified and unbiased. wow talk about some denial.

              • this is your problem mate.,., i am not talking about how well or bad is PR doing .,., i am quoting your lines here >> cosmetic changes like e-ticketing and web domain etc

                why these were not the mentioned, as ProPak is an IT based blog,, this is question i asked from ProPak at the first place., but you have other ideas, mr easy to understand

                • Let me quote myself from an earlier post

                  “I agree to ur point that if there are any good news of PR they should be shared as well” This much i agree and PP should have done it. I have 2 problems

                  First. U assumed Bias since the reporter chose to cover the AGP Audit of PR report a significant event and not the cosmetic changes which are insignificant, whether IT or non-IT. PP could be biased, If PR brings about big changes like for example it shifts to and implements advanced automation systems like ERP etc and all other sec controls which ensure “transparency” and “efficiency” and PP chose to ignore them.

                  Second. The way these small cosmetic changes are already reported in Media ADs(Print/Elctronic/Social) by govt to create a false perception that,

                  “PR(or others for that matter) is on its way to progress”, (when in fact they are not)

                  therefore we don’t want another media outlet reiterating and reinforcing the same false perception.

                  • wOow.,., change of domain is insignificance for an IT blog expiry of domain has significance,, !! introducing complete online ticketing system has no significance on an IT blog.,. meanwhile referring to an article where mentioning an outdated online booking system !!

                    this is where biasness is.,.,

                    • Bahi jaan we covered e-ticketing launch at least three times and then fourth. How many times do you want us to cover that?

                    • yeah in a mockery that you posted 2 weeks back with link to several articles only 1 eticketing article,.,
                      and so you thought., when it is actually launched ,., there is no importance left !!

                      bhai jaan yehi to baat hey apki.,.,

    • پوٹینز کا ایک کام بک بک بک ….. جو گرو نے کرنا ہے وہی چیلوں نے کرنا ہے

  • why this report comes out suddenly when there is an announcement or approval about USD 8 billion funding for up-gradation of railway track etc. as part of CPEC from Karachi to Peshawar ?

    • FYI, AGP is a govt institution so ur question shud b directed to govt/politicians.
      Think positive, Govt now has hard evidence on how to improve checks and balance mechanisms for the utilization of next 8 Billion USD funding

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