Ppo Insurance Rates

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Sharks Behind Ppo Insurance Rates’s Losses Of Rs 450m
ISLAMABAD: Serious violation of rules, irregularities, overpayments, uneconomical purchases and misappropriations caused Pakistan Post Office (PPO) a net loss of Rs 450 million, the audit report 2005-06 revealed.

The audit conducted by the Auditor General of Pakistan revealed that the PPO management neither reported the Rs 65.34 million theft and fraud cases to the auditor at the time of occurrence nor did it proceed against the sharks, which slowed down the recovery process.

The PPO director general failed to recover outstanding dues of Rs 252.386 million on account of printing and service charges from various federal/provincial departments, rent of building from Pakistan Post Foundation and utility charges of different accounts, during 2004-05, the report said.

It also said that PPO Headquarters gave Rs 12.274 million to Pakistan Post Foundation for purchase of uniform in violation of rules, which clearly mention that no advance payment could be made to supplier/contractor except for work actually done.

It was also mentioned in the report that the PPO director general in an underhand deal settled the rates of printing of stationary and forms with PPF, causing a huge loss of 46.432 million to the department.

Pakistan Postal Services Management Board chairman increased two exiting allowances along with additional allowances for employees without approval of finance department, causing a loss of Rs48.481 million to PPO, the report revealed.

It also disclosed a serious violation of rules on account of purchase of canvas bags by placing non-advantageous repeat order in a non-transparent manner causing a loss of Rs 5.255 million. Moreover, the report said that the department suffered a loss of Rs2.112 million due to non-deposit of customs duty and Rs3.405 on account of embezzlement from Baitul Mal fund.

The report said that non-recovery of advance and liquidated damages summed up to a loss of Rs 1.390 million to PPO along with a loss of Rs 0.465 million in terms of overpayments.

Serious irregularities were found in purchases. The report revealed that the lowest bidder was ignored during purchase of green bags and uniforms causing a loss of Rs 3.32 million along with Rs 4.895 million loss during purchases of furniture and medicines.

The remaining losses were incurred on account of unauthorised printing of stamps, unauthorised expense on civil works unauthorised conveyance contract, delayed payment of telephone bills, undue payment of overtime to staff and withdrawal of cash from postal treasury on paper chits in violation of rules.

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