NAVEED BUTT

ISLAMABAD: The Auditor General of Pakistan (AGP) has detected irregularities of more than Rs1.3 billion in the purchases and expenditures of Pakistan Hockey Federation (PHF).

According to special audit report of the PHF, exclusively available with Business Recorder, the AGP detected irregularities in: (i) purchase of $ 2.174 million (i.e.Rs.228.3 million) from open market for paying players and officials in connection with the hockey team’s tours abroad. The Audit maintained that the financial rules of the PHF did not empower PHF to buy foreign currency on its own and that in the absence of budget provision of foreign currency exchange, the purchase of dollars from the open market was irregular and unauthorized; and (ii) incurred expenditures of Rs1.08 billion without obtaining formal sanctions of expenditure from the Secretary General/President PHF as required.

PHF received an annual grant of Rs.569.077 million from Pakistan Sports Board (PSB) which included a special grant under Prime Minister’s directive during 2009-14.

The management responded that financial rules of the PHF clearly defined the method for paying officials, players, umpires, judges and other officials in the foreign currency i.e. US dollars. It said that purchasing from open markets was necessary as there wass no other way of getting foreign currency for the tours. Purchasing of the US dollars from Pakistani rupees from open market is not irregular since it was directed by Secretary General PHF/President PHF.

But, as a matter of fact, the receipt of buying dollars from the open market was neither provided during audit nor was responded to.

It was recommended in the special audit report that responsibility should be fixed for the irregularity besides stopping the irregular practice.

The report observed that expenditure was incurred on the basis of vouchers signed by the Secretary General and neither formal sanction from the competent authority was obtained nor was the formal sanction letter was issued hence it was irregular and unauthorized.

The management replied that the Secretary PHF could sanction expenditure up to Rs.0.5 million but formal approval was got from President PHF who enjoyed power to sanction the amount.