WORKING PAPER OF PRINTED DRAFT PARA NO.

06 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 06 & Undue financial benefit to contractor due to less-obtaining of additional Procurement to Audit
Govt. of 07 performance security- Rs 3.938 million reply recommend
Punjab HUD s for early
& Punjab According to Para 16 of Invitation to Bids approved by the Director General obtaining
Health Projects, Punjab Aab-e-Pak Authority, Lahore, in case the total financial bid amount is less of full
Engineering than 5% of the approved estimated DNIT (Detail Notice Inviting Tender) amount, the amount of
Department. lowest bidder will have to deposit additional performance security from the Schedule Bank additional
Govt. of ranging 5% to the percentage below the estimated DNIT. performanc
Punjab Lahore. e security
Director Procurement & Contracts (P&C), Punjab Aab-e-Pak Authority, awarded a
work “Construction, Installation and O&M of Water Filtration Plant (Work Order along with
2. Chief
No.PAPA/Dir(P&C)/12) in Okara and Sahiwal” to contractor M/s KSB Pumps Company on 12.50%
Executive
2.4.2021 for Rs 57,100,293 at the rate 23.04% below the estimated cost of Rs 74,190,232 markup
Officer (CEO), with completion time of 6 months. Audit observed that the Authority had not obtained from the
Punjab Aab-e- additional performance security as per guidelines of Finance Department. Therefore, less
Pak Authority contractor.
additional performance security has not been obtained from the contractor as under:
(PAPA)
Additional
Name of Agreeme
S Percenta performan To be Less
Name of work Contract nt TS Cost
R ge Below ce security obtained receipt
or Amount
obtained
Construction,
Installation and
O&M of Water
M/s KSB
Filtration Plant 57,100,29 74,190,2 17,093,4 3,937,5
1 Pumps 23.04% 13,155,908
(Work Order
Company
3 32 29 21
No.PAPA/Dir(P&C)/
12) in Okara and
Sahiwal
Violation of the contractual obligations resulted in overpayments amounting to Rs
 3,937,521.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 29 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 29 & 30 Overpayment due to allowing extra 7.5% contractor’s profit on electrical items It is to clarify that Audit
Govt. of the absolute recommend
– Rs 04.198 million nomenclature of
Punjab HUD s for early
the project is recovery
& Punjab As per FD’s template notified by Finance Department, there was provision of
“Supply, Testing,
12.5% contractor’s profit and overhead charges on electrical items. along with
Health Installation and
12.50%
Engineering Commissioning of
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor Surface Water markup
Department. from the
M/s KSB Pumps Company through 1 st running bill against the work “Construction, Treatment Plant at
Govt. of Renala” which is contractor.
Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/12) in
Punjab Lahore. a complete job on
Okara Sahiwal Division”. Audit observed that the Authority in the rate analyses of
site instead of just
2. Chief electrical/ imported items i.e. “Providing and installation of 10 Cubic meter per hour supply of items.
Executive capacity skid mounted surface water treatment plant at Renala Khurd dist. Okara” and Moreover, the
Providing Installation vertical deep well turbine pump 0.15 cusic in tubwell bore hole substantial
Officer (CEO), components of the
Punjab Aab-e- allowed 20% contractor’s profit and overhead charges instead of only 12.50%. Therefore,
plant consist of
Pak Authority excess payment was made to the contractor as under: mechanical
(PAPA). components
instead of
electrical parts/
S material therefore,
Name of items TS Rate Excess rate Overpayment
R 20% contractor’s
Providing and installation of 10 Cubic Rs 4,086,000 profit is
Rs 4,086,000
meter per hour capacity skid mounted (54,480,000 x incorporated
1 54,480,00 (4,086,000 x 01 while analyzing
surface water treatment plant at 7.5% = Rs
0 Nos) the item in TS
Renala Khurd dist. Okara 4,086,000)
estimate by the
Providing Installation vertical deep Rs 112,136 112,136 consultant.
Rs
2 well turbine pump 0.15 cusic in (1,495,140x 7.5% (112,136 x 01 However,
1,495,140
tubwell bore hole = Rs 112,136) Nos) payment is made
Total 4,198,136 according to the
quoted rate of the
 contractor. Hence,
neither any
violation of the
prevailing
instructions of the
FD is committed
Violation of the FD’s instruction resulted in overpayment amounting to Rs 4,198,136. nor any
overpayment is
carried out. So, by
taking into
account the above
facts, the subject
para may be
settled please.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 30 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 30 & 31 Overpayment due to non-deposit of GST into FBR Department – Rs 9.2620 It is elucidated Audit
Govt. of million that goods recommend
Punjab HUD declaration along s for early
& Punjab As per Sr. 9(3) Table 3 of Sixth Schedule of the Sales Tax Act, 1990 (as amended with tax returns recovery
Health from 01.07.2021), the filtering or purifying machinery and operator for water was exempt regarding the said from the
Engineering from GST. Further, as per FBR’s letter No.1(42) STM/2009/99638-R dated 24.07.2013, the item of work is contractor.
Department. contractors engaged should make purchases only from sales tax registered persons. The hereby attached
Govt. of contractors carrying out government works against public tender are required to have a Bill
indicating the
Punjab Lahore. of Quantities (BOQ). The contracting department /organization must require such detail of GST
contractors to present sales tax invoices of all the material mentioned in the BOQ as deductions which
2. Chief evidence of its legal purchase, before payment is released. is made
Executive
Officer (CEO), Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor according to the
Punjab Aab-e- M/s KSB Pumps Company through 1 st running bill against the work “Construction, quoted rate of the
Pak Authority Installation and O&M of Water Filtration Plant Plant (Work Order No.PAPA/Dir(P&C)/12) contractor i.e.,
(PAPA). in Okara, Sahiwal Division”. Audit observed that the Authority in the rate analyses of @Rs.
electrical/ imported items i.e. “Providing and installation of 10 Cubic meter per hour 26,473,978.
capacity skid mounted surface water treatment plant at Renala Khurd dist. Okara ” allowed Therefore,
17% General Sales Tax in TS Rate. The contractor procured/ imported the treatment plant deductions
from foreign country after 1.7.21 and no Goods Declaration (GD) was produced to verify according to the
that due Tax amount Rs 9,261,600 had been deposited in Govt. kitty. Audit was of the sanctioned rate in
opinion that GST was indirect Tax, and in absence of Sales Tax Invoices / GD, it was TS estimate
proved that tax was evaded. Hence, the recovery was required to be made from the against the said
contractor as under: item of work is
not pertinent,
which is analyzed
according to the
 prevailing market
rates and
incorporated for
the preparation of
the instant
Taxes GST, Custom estimate. Hence,
Rate
Uni Value of Duty deposited into Overpayme
Name of items Approve neither any
t 17% GST FBR As per Goods nt
d violation of the
Declaration
Providing and installation of 10 prevailing
Cubic meter per hour capacity 9,261,600 instructions of
54,480,00
skid mounted surface water
0
01 (54,480,000 0 9,261,600 the FD is
treatment plant at Renala Khurd x 17%)
committed nor
dist. Okara
any overpayment
Violation of the FBR instructions resulted in overpayment amounting to Rs 9,261,600.
is carried out. So,
by taking into
account the
above facts, the
subject para may
be settled please.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 31 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 31 & 32 Loss due to application of higher MRS than approved in PC-I - Rs 0.494 Related to Audit
Govt. of million Planning recommend
Punjab HUD s early
As per FD’s Letter No. RO (TECH)/FD/2-6/98, dated 21.10.2006, approved scheme
& Punjab recovery
shall be technically sanction at the rates on which scheme was administratively approved, from the
Health irrespective of any change in market rates at the time of technical sanction. Contractor.
Engineering Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor
Department. M/s KSB Pumps Company through 1st running bill against the work “Construction,
Govt. of Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/12 dated:
Punjab Lahore. 2.4.2021) in Renala Khurd Okara, Sahiwal Division”. Audit observed that the Authority got
approved the TS estimate by applying MRS 2nd Bi-annual 2020 instead of admissible MRS
2. Chief rates based on 1st Bi-annual, 2020 for District Okara central zone. The PC-1 and Scheme
Executive was approved by the PDWP during 19.05.2020 and on the basis of MRS rates based on 1st
Officer (CEO), Bi-annual, 2020. Therefore, due to application of higher MRS rates in TS Estimate resulted
Punjab Aab-e- in loss to the Government.
Pak Authority MRS to be Differe
S. Name of MRS Applied Overpayment
applied nce Qty
(PAPA). # Items (in Rs)
(in Rs) (in Rs) (in Rs)
Fabrication
of Mild 11
1 157.84 151.33 6.51 18,1
Steel 7,987
24
Grade-60
RCC 1:2:4
3000 psi
for storage 19
2 13071 9591 3480
tank in 56 4,880
ground
floor
3 Pacca 7283 6570 713 9
Brick work 130 2,690
in F & P
 1:5
Pacca
Brick work 8
4 7818 7104 714
in G. floor 124 8,536
1:5
1843 494,
Total 28329.84 23416.33 4913.51
  4 093
Weak managerial controls resulted in loss of Rs 494,093 due to application of higher MRS
rates.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 33 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
33 & 34 Overpayment due to allowing extra cost of the input man-month basis for Related to Audit
inspectors (Civil and Electrical) - Rs 24.300 million Planning recommend
s early
recovery
As per Appendix-A (supervision team) (PC-I, page 701) TOR for hiring of from the
Consultancy services for detailed design residence supervision of clean drinking water Consultants
Secretary to central zone, there was provision of RE, ARE Civil and ARE MEP only. .
Govt. of
Punjab HUD Director Project, Punjab Aab-e-Pak Authority, Lahore made payments to the
& Punjab Consultants for supervision and design of Clean Drinking water in Central and South zone.
Health Audit observed that the Authority made payment of 11 Nos. of Inspectors (Civil) and 5 Nos.
Engineering of Inspectors (MEP) amounting to Rs 12,150,000 whereas in the PC-I, the same staff was
Department. not provided as well as in TOR / RFP. Moreover, the Authority did not make such similar
payments to other consultant M/s Jers for consultancy services in North zone. Therefore,
Govt. of
excess payment to the consultants was made as under:
Punjab Lahore.
Staff Input
Sr. Name of Home
2. Chief No.
Name of Work
Consultant
Positions Month
Rate
(Staff
Month)
/ Field
Amount

Executive Consultancy services for detailed design and ECSP

Inspectors 9,900,00
1 residence supervision for the Aab-e-Pak project (central 45000 220 Field
Officer (CEO), (provision of clean drinking water) zone)
11 Nos 0

Punjab Aab-e- Do- Do-

Inspectors
05 Nos
45000 50 Field
2,250,00
0
Pak Authority Consultancy services for detailed design and ECSP
Inspectors 9,900,00
2 residence supervision for the Aab-e-Pak project (South 45000 220 Field
(PAPA). (provision of clean drinking water) zone)
11 Nos 0
Inspectors 2,250,00
Do- Do- 45000 50 Field
05 Nos 0
2430000
  Total  
0

Violation of Agreement resulted in overpayment of Rs 24,300,000 due to allowing extra

cost of the input man-month basis for inspectors civil and Electrical.
 Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 34 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 34 & 35 Undue financial benefit to the Consultants due to non-obtaining of Insurance Related to Audit
Govt. of Guarantee - Rs 133.214 million Planning recommend
Punjab HUD s early
As per Para 3.4 of the Agreement, if the Client suffers any losses or damages as a result of
& Punjab obtaining
proven faults, errors or omissions in the design of a project, the consultants shall make good of
Health such losses or damages, subject to the conditions that the maximum liability as aforesaid Insurance
Engineering shall not exceed twice the total remuneration of the consultants for design phase in Guaranties
Department. accordance with the terms of the Contract. from the
Govt. of consultants
Punjab Lahore. .
Director Project, Punjab Aab-e-Pak Authority, Lahore made payments to the
different Consultants for design and consultancy services for Provision of Clean Drinking
2. Chief Water in Central Zone, South Zone and North Zone. The Authoritty was required to obtain
Executive Insurance Guaranties from the Consultants during construction period of 20 months, but the
Officer (CEO), same was not obtained by the Authority, which resulted in undue financial benefit to the
Punjab Aab-e- consultants as under:
Pak Authority
(PAPA). Sr.
Name of Work
Name of Amount of Payment Insurance
No. Consultant Agreement Made Amount
Consultancy services for detailed design and
ECSP (central 40,867,22
1 residence supervision for the Aab-e-Pak 53,661,600 53,661,600
zone) 2
project (provision of clean drinking water)
Consultancy services for detailed design and
ECSP (South 32,812,13
2 residence supervision for the Aab-e-Pak 48,302,400 48,302,400
zone) 8
project (provision of clean drinking water)
Consultancy services for detailed design and M/s Jers AID
25,415,50
3 residence supervision for the Aab-e-Pak (Joint Venture) 31,250,000 31,250,000
0
project (provision of clean drinking water) Noth Zone
99,094,86
  Total   133,214,000 133,214,000
0

Violation of Agreement resulted in undue financial benefit of Rs 133,214,000 due to non-

obtaining of Insurance Guarantee.
 Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 35 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 35 & 36 Loss due to application of higher MRS than approved in PC-I - Rs 4.757 Related to Audit
Govt. of million Planning recommend
Punjab HUD s early
As per FD’s Letter No. RO (TECH)/FD/2-6/98, dated 21.10.2006, approved scheme
& Punjab recovery
shall be technically sanction at the rates on which scheme was administratively approved, from the
Health irrespective of any change in market rates at the time of technical sanction. Contractor.
Engineering Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor
Department. M/s Chaudhri Construction JV Skyplus builder through 6th running bill against the work
Govt. of
“Construction, Installation and O&M of Conventional Treatment Plant (Work Order
Punjab Lahore.
No.PAPA/Dir(P&C)/13, dated: 29.12.2020) in District Faisalabad”. Audit observed that the
Authority got approved the TS estimate by applying MRS 2nd Bi-annual 2020 instead of
2. Chief
Executive admissible MRS rates based on 1st Bi-annual, 2020 for District Faisalabad central zone. The
Officer (CEO), PC-1 and Scheme was approved by the PDWP on 19.05.2020 and on the basis of MRS rates
Punjab Aab-e- based on 1st Bi-annual, 2020. Therefore, due to application of higher MRS rates in TS
Pak Authority Estimate resulted in loss to the Government.
(PAPA). S. MRS Applied (in
MRS to be Differen
Overpayment
Name of Items applied ce Qty
# Rs)
(in Rs) (in Rs) (in Rs)
3" 90 mm i/d HDPE, PN 39,9 970,
1 594.3 570 24.3
10 29 275
4" 110 mm i/d HDPE, PN 8,4 341,
2 892.25 852 40.25
10 81 360
6" 160 mm i/d HDPE, PN 4,5 143,
3 1786.25 1755 31.25
10 78 063
Earthwork excavation in 36,2 1,160,
4 225 193 32
open cutting 65 476
Compaction of earthwork
36,2 491,
5 (Soft, ordinary or hard 44.95 31.4 13.55
64 377
soil)
Fabrication of mild Steel 139,9 999,
6 158.14 151 7.14
grade-60 64 343
Supplying and filling sand
4,6 398,
7 under floor, or plugging in 785.2 700 85.2
75 334
wells
8 Pacca Brick Work in F & 7529.9 6815.75 714.15 1 123,
 P 73 548
Pacca Brick Work in 1 129,
9 8079.85 7365.7 714.15
Groud Floor (1:5) 81 261
4,757,0
Total 20095.84 18433.85 1661.99 270510.16
  37

Weak managerial controls resulted in loss of Rs 4,757,037 due to application of

higher MRS rates.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 40 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 40 & 41 Non-recovery due to non-inspection by third party inspectors at factory in It is declared Audit
Govt. of foreign country– Rs 1.00 million that the recommend
Punjab HUD international 3rd s early
As per Technical Specification (Agreement) Clause No. 11.3.1 (Factory Test), all
& Punjab recovery
testing shall either be witnessed by a team comprising the Employer and Engineer, or a party validation
from the
Health neutral third-party inspector who shall be well versed with the testing procedure. The Bidder is carried out contractor.
Engineering / contractor shall submit for the Employer’s approval three internationally acclaimed against the all
Department. inspectors. Bidders shall quote the rates of such third-party inspection teams / companies in imported items
Govt. of at their
their Bids.
Punjab Lahore. manufacturing
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor
M/s KSB Pumps Company through 1 st running bill against the work “Construction, unit involved in
2. Chief
Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/12, the said project
Executive
dated: 2.4.2021) in Renala Khurd Okara Sahiwal Division”. Audit observed that “Providing as a pre
Officer (CEO),
and installation of 10 Cubic meter per hour capacity skid mounted surface water treatment inspection upon
Punjab Aab-e-
plant at Renala Khurd dist. Okara” was required to be import from Western Europe only and the direction of
Pak Authority
(PAPA). factory tests / pre-inspection was required to be carried out at Manufacturing Unit at the engineer in-
expenses of contractor. However, as per agreement the Pre-inspection was not carried out, charge to ensure
therefore, recovery be made from contractor as under: strict
compliance over
Name of Amount of
Name of Work the contractual
Contractor Pre-inspection
obligations at
“Providing and installation of 10 Cubic meter per hour M/s KSB the expense of
capacity skid mounted surface water treatment plant at Pumps 1,000,000 the contractor.
Renala Khurd dist. Okara” Company The pre
Violation of contractual obligations resulted in non-recovery of Rs 1,000,000 due to non- shipment
inspection by third party inspectors at factory in foreign country. inspection report
is attached
 herewith as a
ready reference.
Hence no any
violation of the
contractual
obligation is
committed. It is
therefore,
requested that
para may please
be settled.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 42 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
42 & 43 Overpayment due to sanction of higher rates for PVC Pipe – Rs 9.209 million It is verified that the Audit
initial 4m length of recommend
According to the instructions issued by the Finance Department, vide No. the bore (6” dia) is s for early
RO(Tech)FD-2-3/2004, dated 02.08.2004, rate analysis for the non-standardized items shall constructed manually recovery
be prepared by the Executive Engineer, clearly giving the specifications of the material used and the same length along with
and approved by the competent authority not below the rank of Superintending Engineer on of 6” dia PVC pipe
12.50%
Secretary to the basis of Input rates and prevailing market rates by obtaining three quotations of relevant
was installed as a markup
quarter. The same will be placed on the departmental website and will also send a copy to
Govt. of blind pipe to ensure from the
Finance Department for scrutiny/standardization.
Punjab HUD the stability of the
contractor.
& Punjab bore and paid @RS
Health Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor 1400/m. Further, the
Engineering M/s KSB Pumps Company through 8th running bill against the work “Construction, provision of this item
Department. Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/03) in in TS estimate was
Govt. of Faisalabad Division”. The contract was awarded for Rs 419,608,197 to the contractor. Audit utilized just to shield
Punjab Lahore. observed that the authority made payment to the contractor for the item “Providing and the manual part of the
installation of PVC Blind pipe Class B 6 inch dia etc” @ Rs 1400 per meter instead of bore. However, rest
2. Chief admissible rate for PVC 4 inch dia pipe @ Rs 751.20 per meter. Moreover, as per provision of the bore is
Executive of TS Estimate, the Authority got executed the item “Drilling boring upto 6 inch dia” and
constructed
Officer (CEO), mechanically and 4”
installed strainer for 4 inch dia and accordingly PVC Blind pipe in bore hole 4 inch dia was
Punjab Aab-e- dia PVC pipe was
required to be installed. Therefore, due to sanctioned of item with excess dia of 6 inch
Pak Authority used as a main blind
instead of 4 inch resulted in over payment to the contractor as under : pipe which is passing
(PAPA).
through the 6” dia
PVC Pipe and the
Admissible contractor was
S TS Agreeme rate for 4” Differe Overpaym recompensed @Rs
Name of item Qty paid
R Rate nt rate dia PVC nce ent
pipe 751.20/m in the 8th
1 Providing and 1385. 1400 751.20 649 14190 meter 9,209,310 running bill against
 the said item of work
in the instant project.
The quantities of bore
holes and respective
installation are same
accordingly the
payment has been
installation of
(55 meter in bore + 55 made to the
PVC Blind pipe (649 x
Class B 6 inch dia
25 meter in Brine Bore =110
14190)
contractor. Evidence
meter x 129 nos) of the payment and as
etc
Violation of the FD’s instructions resulted in overpayments amounting to Rs 9,209,310 due build drawing is
to sanction of higher rates for PVC Pipe. attached for ready
reference. Hence
neither any violation
of rule is committed
nor any over payment
was made. It is
therefore, requested
that the para may
please be settled.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 43 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 43 & 44 Overpayment due to allowing inadmissible carriage, installation charges and It is to clarify that the Audit
Govt. of extra 14% contractor’s profit and overhead charges in rate analyses – Rs additional carriage, recommend
Punjab HUD installation and s for early
27.167 million recovery
& Punjab commissioning
charges were along with
Health As per quotation/ Techno-Commercial Proposal dated, 14.01.2021 for RO plants
included in the 12.50%
Engineering 2000 liter, Pre-Filtration Plants 2000 liter per hours, Arsenic Filter and Fluoride Filter @ Rs
markup
Department. 1,600,000, Rs 351661, Rs 341,000 and Rs 370,000 each respectively and the rate/ price analysis of plants as
from the
Govt. of includes at site free of charges, inclusive of all custom duties/ taxes, after sales technical these are not
contractor.
Punjab Lahore. services for six months besides erection, installation and commissioning charges. incorporated in their
composite price and
2. Chief Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor contractor needs to
Executive M/s KSB Pumps Company through 8th running bill against the work “Construction, shift the plants from
Officer (CEO), Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/03) in his ware house to the
Punjab Aab-e- Faisalabad Division”. The contract was awarded for Rs 419,608,197 to the contractor. Audit site after completion
Pak Authority observed that the Authority in the rate analysis of items i.e. RO Filtration Plant 2000 liter of civil works.
(PAPA). per hour, Pre-Filtration Plant 2000 liter per hour, Arsenic Removal Filter and Fluoride Further, quotations of
Removal Filter included separately carriage charges, installation and commissioning of the plants are taken
from its manufacturer
plants charges. Further, the Authority also added the 20% contractor’s profit and overhead
for preparation of the
charges instead of only 6% service charges as in the rates/price taxes were already included
estimate not from the
the price. Therefore, excess payment was made to the contractor as under:
contractor. Contractor
S
Name of item
TS
Excess rate
Qty Overpayme has to buy the plants
R Rate paid nt from manufacturer’s
Rs 237400
RO Filtration Plants 2000 liter per 19320 10000+(10000x20%=12000+
cost and his profit is
1 94 nos 22,315,600 given because of the
hour etc 00 14% extra profit of Rs
1610000x14%=225400) fact that he purchases
2 Pre Filtration Plants 2000 liter per 43399 Rs 62632 44 nos 2,755,808 the items from his
hour etc 3 10000+ (10000x20%=12000+
14% extra profit of Rs finances and then
 claim from the
Government. The
instant process takes
considerable time
361661x14%=50632) which justifies his
Rs 61140
profit. Further the
42120 10000+ (10000x20%=12000+
3 Arsenic Removal Filter 22 nos 1,345,080 payment against the
0 14% extra profit of Rs
351000x14%=49140) said items were made
Rs 5820 according to the
Submersible pump Capacity 4M3 per 1000+(1000x20%=1200+ 129
4
hour etc
40000
14% extra profit of Rs nos
750,780 quoted rates of the
33000x14%=4620) contractor beyond the
750780 rates sanctioned in
Violation of the contractual obligations resulted in overpayment amounting to Rs TS estimate. Hence
27,167,268. no any overpayment
was carried out by the
authority. So, the
para may be settled
please.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 44 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 44 & 45 Overpayment due to allowing inadmissible 20% contractor’s profit and Audit
Govt. of overhead charges on 17% GST in rate analyses – Rs 7.314 million It is clarified that recommend
Punjab HUD quotations are s for early
& Punjab According to FD’s instruction No. RO(Tech)FD-18-23/2004 dated 21.09.2004, the taken from the recovery
Health rate analysis for a non-standardized item shall be approved by SE, giving specifications of manufacturer for along with
Engineering the material/inputs used as per FD’s website. The standardized analysis shall be used to the purpose of 12.50%
Department. work out the rate of items as far as possible. estimation. The TS markup
Govt. of estimate is an from the
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor
Punjab Lahore. internal document contractor.
M/s KSB Pumps Company through 8th running bill against the work “Construction,
of the department
2. Chief Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/03) in
which is not shared
Executive Faisalabad Division”. The contract was awarded for Rs 419,608,197 to the contractor. Audit
with any
Officer (CEO), observed that the Authority in the rate analysis of items i.e. RO Filtration Plant 2000 liter
contractor. The
Punjab Aab-e- per hour, Pre-Filtration Plant 2000 litre per hour, Arsenic Removal Filter and Fluoride
contractors quote
Pak Authority Removal Filter added the 20% contractor’s profit and overhead charges on 17% GST.
their rates against
(PAPA). Therefore, excess payment was made to the contractor as under:
the composite items
S
Name of item
TS
Excess rate
Qty Overpaym described in BOQ
R Rate paid ent served to them in
Rs 65688
RO Filtration Plants 2000 litre 19320 bidding documents.
1 (1932000x17%=328440x20%=6 94 nos 6,174,672
per hour etc 00 So, in this case
5688)
Rs 14755 composite rate
Pre Filtration Plants 2000 litre 43399
2
per hour etc 3
(433993x17%=73778x20%=147 44 nos 649,220 were quoted by the
55) contractor which
Rs 14320
42120 were accepted and
3 Arsenic Removal Filter (421200x17%=71604x20%=143 22 nos 315,040
0 allotted
20)
Submersible pump Capacity Rs 1360 129 accordingly.
4 40000 175,440
4M3 per hour etc (40000x17%=6800 x 20 %) nos Payments have
 been made
according to the
1139700 quoted/allotted
Violation of the contractual obligations resulted in overpayments amounting to Rs rates. Calculations
7,314,372. in TS Estimate are
also correct.
So, keeping in view
of above facts para
may please be
settled.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 45 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 45 & 46 Overpayment due to incorrect measurements – Rs 1.806 million It is verified that the Audit
Govt. of initial 4m length of the recommend
Punjab HUD According to instruction No. 7 of Preface of Measurement Book, all payments for bore (6” dia) is s for early
& Punjab work or supplies are based on the quantities recorded in the MB, it is incumbent upon the constructed manually recovery
person taking the measurements to record the quantities clearly and accurately. and the same length of along with
Health
6” dia PVC pipe was 12.50%
Engineering Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor markup
Department. installed as a blind
M/s KSB Pumps Company through 8th running bill against the work “Construction, from the
Govt. of Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/03) in pipe to ensure the
contractor.
Punjab Lahore. Faisalabad Division”. The contract was awarded for Rs 419,608,197 to the contractor. Audit stability of the bore
observed that the Authority recorded measurements and made payment of items “P/l pvc and paid @RS
2. Chief blind pipe 4 inch dia and strainer 4 inch dia” for quantities of 65 meter but the item of 1400/m. Further, the
Executive boring was paid for the quantities of 60 meter only per pump. Further, as per feasibility provision of this item
Officer (CEO), Study Report by Punjab Aab-e-Pak Authority during December, 2022 also revealed that in TS estimate was
Punjab Aab-e- quantities of boring and PVC Blind pipe+Strainer were the same for each pump. Hence, the utilized just to shield
Pak Authority Authority made excess payment of 5 meter of each pump and resulted in overpayment to the the manual part of the
contractor as under: bore. However, rest of
(PAPA).
S Rate Excess qty of each pump and Overpayme the bore is constructed
Name of item
R Paid Brine boring nt mechanically and 4”
1290 meter 1,806,000 dia PVC pipe was
P/l PVC blind pipe 4 inch
1 1400 (5 meter+5 meter =10 meter x 129 (1400 x
dia etc used as a main blind
nos) 1290)
pipe which is passing
Incorrect measurements resulted in overpayment of Rs 1,806,000 to the contractor. through the 6” dia
PVC Pipe and the
contractor was
recompensed @Rs
751.20/m in the 8th
running bill against
the said item of work
 in the instant project.
The quantities of bore
holes and respective
installation are same
and no incorrect
measurement is taken,
accordingly the
payment has been
made to the contractor.
Evidence of the
payment and as build
drawing is attached for
ready reference.
Hence neither any
violation of rule is
committed nor any
over payment was
made. It is therefore,
requested that the para
may please be settled.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 46 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 46 & 47 Overpayment due to allowing and sanction of higher dia of PPRC pipe 6 inch It is clarified that Audit
Govt. of dia on the head of submersible pump of 3 inch dia – Rs 0.921 million the provision of recommend
Punjab HUD the item P/F of 6” s for early
& Punjab According to FD’s instruction No. RO(Tech)FD-18-23/2004 dated 21.09.2004, the dia PPRC pipe, recovery
rate analysis for a non-standardized item shall be approved by SE, giving specifications of PN 20 was along with
Health
the material/inputs used as per FD’s website. The standardized analysis shall be used to neither sanctioned 12.50%
Engineering markup
Department. work out the rate of items as far as possible. in TS estimate from the
Govt. of nor it was paid in contractor.
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor
Punjab Lahore. 8th Running bill of
M/s KSB Pumps Company through 8 running bill against the work “Construction, the contractor.
th

2. Chief Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/03) in However, the rate
Executive Faisalabad Division”. The contract was awarded for Rs 419,608,197 to the contractor. Audit of the item P/F,
Officer (CEO), observed that the Authority in the TS Estimate approved the item “P/fixing PPRC 6-inch dia jointing, and
Punjab Aab-e- pipe PN20 pressure etc” at the rate Rs 1263 per meter instead of actual admissible dia of testing PPRC, PN
Pak Authority PPRC pipe 63mm/2.5 inch @ Rs 906 per metere. Therefore, incorrect TS estimate was 20 ,63mm was
(PAPA). approved by the Chief Engineer/DG (Project) for the item and accordingly payment was incorporated in
made to the contractor as under: TS estimate as
per the analysis
To
S Item to be Rate Exces Qty Overpaym i.e., @Rs 1263/m
Item Sanctioned be
R sanctioned paid s rate paid ent (analysis
paid
attached) which is
2580
paid according to
meter
P/fixing PPRC 6 P/fixing PPRC 2.5 921,060 the quoted rate of
(20
1 inch dia pipe inch dia pipe PN20 1263 906 357
meter x
(2580 x the contractor i.e.,
PN20 pressure etc pressure etc
129
357) @1300/m.
nos) According to the
Violation of the contractual obligations resulted in overpayments amounting to Rs 921,060. PC-1 the item
providing and
 fixing of PPRC
63mm is
segregated with
elbows, socket,
unions, clamp etc.
having separate
rates and RS 906
is only the rate of
pipe excluding
fittings. However,
composite rate of
Rs 1263 has been
inserted in TS
that was being
paid according to
the execution at
site as per quoted
rate of the
contractor.
Relevant
documents are
attached.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 47 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 47 & 48 Non-recovery due to use of substandard bricks ‒ Rs 4.583 million The Audit
Govt. of representative recommen
Punjab HUD As per section 801 and section 1041-8 of Standard Specification for Roads &
brick samples ds early
& Punjab Bridges Construction 1997, read with FD’s material rates of item No.07.001, the
were randomly recovery
Health standard size of bricks was 9″ x 4-1/2″ x 3″ and the crushing strength was 2000 PSI.
Engineering taken from the from the
Further, as per MRS remarks column chapter “Brick Works”, if 2nd and 3rd class
Department. stacks by the field contractor.
bricks were used, the item rate would be reduced by 7% and 14%, respectively.
Govt. of formation and,
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to sent to the
contractor M/s KSB Pumps Company through 8th running bill against the work laboratory for its
2. Chief “Construction, Installation and O&M of Water Filtration Plant (Work Order testing. The
Executive
No.PAPA/Dir(P&C)/03) in Faisalabad Division”. The contract was awarded for Rs results are
Officer (CEO),
Punjab Aab-e- 419,608,197 to the contractor. The Authority made payment for the items “Pacca satisfactory and
Pak Authority brick work cement sand mortar etc.”. Audit observed that as per lab test reports of meet the required
(PAPA). Laboratories, the strength of the bricks was below 2000 psi, but the department did criteria of
not reduce the rate by 14%. The contractor used the 3 rd class bricks in the work. compressive
Hence, recovery be made from the contractor as under: strength of first-
class bricks.
S Overpayme
Name of item TS Rate Recovery to be made Qty paid (Relevant test
R nt
Rs 954.21 per cum 2514 cum reports are
Pacca brick work in 6815.75
1 (6815.75x14%=945 (18.216 cum 2,398,884 attached).
F&P 1:5 etc per cum
per cum) x 138 nos)
Rs 1031.20 per cum 2118 cum
Pacca brick work in 7365.70
2 (7365.70x14%=1022 (15.35 cum x 2,184,082
ground floor 1:5 etc per cum
per cum) 138 nos)
4582966
 Violation of the specifications and MRS resulted in non-recoveries amounting to Rs
4,582,966.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 48 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 48 & 49 Non-recovery due to payment of higher rates than schedule rates ‒ Rs 0.348 It is elucidated Audit
Govt. of million that the Authority recommend
Punjab HUD sanctioned the s early
& Punjab As per MRS item no. 5(c) under Chapter-6(Concrete) based on 1 st Bi-Annual recovery
rate as per MRS
Health 2020 Faisalabad, the rate of item “Cement, concrete, placing PCC ratio 1:1.5:3 etc” from the
Engineering the rate was Rs 9006 per cubic meter. item No. 6.6 (aii) contractor.
Department. while forecasting
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
Govt. of the TS estimate
contractor M/s KSB Pumps Company through 8th running bill against the work
Punjab Lahore. but the item was
“Construction, Installation and O&M of Water Filtration Plant Work Order
No.PAPA/Dir(P&C)/03 in Faisalabad Division”. The contract was awarded for Rs neither executed
2. Chief nor being paid to
419,608,197 to the contractor. Audit observed that in the TS Estimate the Chief
Executive
Engineer/DG Projects, Punjab Aab-e-Pak Authority, Lahore sanctioned the rate of the Contractor in
Officer (CEO),
Rs 10689.60 per cubic meter by taking the MRS item no.6 of Chapter-6 RCC its 8th Running
Punjab Aab-e-
instead of applicable MRS item no. 5 of Chapter-6 for PCC 1:1.5:3 etc @ Rs 9006 Bill. Copy
Pak Authority
per cubic meter. Hence, excess rate was sanctioned and made payment to contractor
(PAPA). attached. Hence
on higher side as under:
no overpayment
is made So, para
S Admissible Excess Overpaym may please be
Name of item TS Rate Qty paid
R Rate Rate ent settled.
Cement, concrete, 207 cum
10689.60
1 placing PCC ratio 9006 1683 (1.50 cum 348,381
per cum
1:1.5:3 etc x 138 nos)

Violation of the specifications and MRS resulted in non-recoveries amounting to Rs

 348,381.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 49 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
49 & 50 Overpayment due to allowing extra 7.5% contractor’s profit on electrical items It is to clarify that Audit
– Rs 00.697 million the item is for recommen
supplying, ds for
As per FD’s template notified by Finance Department, there was provision testing, &
early
of 12.5% contractor’s profit and overhead charges on electrical items. installation on site
as a complete job recovery
Secretary to Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to rather than only along with
Govt. of contractor M/s KSB Pumps Company through 8th running bill against the work supply of items. 12.50%
Punjab HUD “Construction, Installation and O&M of Water Filtration Plant (Work Order Therefore, 20% markup
& Punjab No.PAPA/Dir(P&C)/03) in Faisalabad Division”. The contract was awarded for Rs contractor’s profit from the
Health 419,608,197 to the contractor. Audit observed that the Authority in the rate analysis is incorporated in
Engineering of electrical items i.e. Supplying and fixing PVC pipe, GI Pipe, Single core the analysis. contractor.
Department. electrical cable, tubelight lights fans, exhaust fan, Distribution board items allowed Keeping in view
Govt. of 20% contractor’s profit and overhead charges instead of only 12.50%. Therefore, of above fact, the
Punjab Lahore. excess payment was made to the contractor as under: subject para may
be settled please.
2. Chief
Executive S Overpayme
Name of item TS Rate Excess rate
Officer (CEO), R nt
Punjab Aab-e- electrical items i.e. Supplying and fixing
Rs 67359 Rs 5052 697,176
Pak Authority PVC pipe, GI Pipe, Single core electrical
1 per plant (67359x7.5%=R (5052x138
(PAPA). cable, tubelight lights fans, exhaust fan,
room s 5052) nos)
Distribution board items

Violation of the contractual obligations resulted in overpayments amounting to Rs

697,176.
 Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 50 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 50 & 51 Non-recovery due to installation of substandard RO plants and Pre-Filtration RO plant Audit
Govt. of Plants – Rs 10.035 million membranes duly recommen
Punjab HUD certified by NSF, ds early
& Punjab As per Technical Specification of RO 2000 litere per hour plant (at Page-121 high pressure
recovery.
Health of PC-1), pre-filtration control of carbonate, sulphate, fouride and silica scalling pumps, filter
Engineering should of make Europe, USA, Japan only, RO membrane should also be of origin media etc. have
Department. USA, West Europe and Japan only. Further, impeller material of bore /submersible been imported
Govt. of
pumps, feed pumps (horizontal low pressure pumps) and high pressure pumps from USA wave
Punjab Lahore.
should be made of SS-304 material and horizontal feed low pressure pump should cyber, Germany,
2. Chief be of working pressure 6-bar. Further, sand filtration and carbon filtration and RO Sri Lanka,
Executive housing should be made of material FRP(Fiber-glass Reinforced Plastic) only. Thailand etc.
Officer (CEO), further
Punjab Aab-e- Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to components have
Pak Authority contractor M/s KSB Pumps Company through 8th running bill against the work been installed as
(PAPA). “Construction, Installation and O&M of Water Filtration Plant (Work Order per the
No.PAPA/Dir(P&C)/03) in Faisalabad Division”. The contract was awarded for Rs specifications
419,608,197 to the contractor. Audit observed that as per import documents, the being set in the
contractor imported the carbonate, sulphate, fluoride and silica scalling, RO PC-1/TS estimate.
Membrane, filter media sand, sand filters, High pressure pumps from locally or According to the
China instead of origin Europe, USA and Japan only. Moreover, the RO Model technical sanction
BW30-4040 as per PC-1 had the ability to remove salt rejection 99.50%, whereas the minimum salt
the contractor installed the Model RE4040-BLN (CSM) which can salt rejection rejection must be
only 99.20%. Further, the vessel material of sand & carbon filter and RO Housing 99%. Contractor
submitted the
membrane was PVC (Polyvinyl Chloride). Further, in the submersible, feed low
technical data of
pressure pump and high pressure pump, the impeller was of bronze/ brass metallic
the plant that was
impeller. Hence, the contractor supplied the substandard RO and Pre-filtration
reviewed,
 finalized and
plants, which resulted in loss to the Authority as under: consented by the
S TS Rate to be Qty Overpaym
consultants and
Name of item membranes were
R Rate reduced paid ent
Rs 96600 installed as per
RO Filtration Plants 2000 litre per 19320
1 (1932000x5%=966 94 nos 9,080,400 the required
hour etc 00
00) criteria with
2
Pre Filtration Plants 2000 litre per 43399 Rs 21699
44 nos 954,756
minimum salt
hour etc 3 (433993 x5%) rejection of 99%.
954756 Technical
Violation of PC-1 instruction resulted in non-recovery of Rs 10,035,156 due to use submittal is
of sub-standard RO Plants. attached.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 51 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 51 & 52 Non-recovery due to non-provision of facilities – Rs 0.859 million Site offices have Audit
Govt. of As per Technical Specification (Agreement) Clause No. 2.14.10 (Engineer’s been established recommen
Punjab HUD and Employer Site office), the contractor should provide an adequate fully equipped, by the authority ds early
& Punjab recovery
static, prefabricated or mobile office with sufficient space and washing and sanitary with all necessary
Health from the
Engineering facilities for the Engineer’s representative and Employer’s representative. These facilities being contractor
Department. offices shall have a minimum space f 25 m2 for each, lockable entrances, openable provided by the
Govt. of windows and serviceable finishes. Each office shall be equipped at least but not contractor to fulfil
Punjab Lahore. limited to Two office Tables, Two office Chairs (Swivel), 4 sundry chairs, 1 the contractual
computer incl. screen, mouse and keyboard and the current software, A4 Color obligation.
2. Chief Printer, UPS Unit, Air Conditioning, Lights, Telecommunication, also International,
Executive
Internet, Consumable & Stationary, First Aid supplies, Fire Extinguisher: Hand
Officer (CEO),
Punjab Aab-e- carried, portable, class “A” fire extinguisher for temporary offices and slimier
Pak Authority spaces all in accordance with prevailing building codes.
(PAPA). Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
contractor M/s KSB Pumps Company through 8th running bill against the work
“Construction, Installation and O&M of Water Filtration Plant (Work Order
No.PAPA/Dir(P&C)/03) in Faisalabad Division”. The contract was awarded for Rs
419,608,197 to the contractor. Audit observed that the contractor did not provide the
facilities to employer /Authority i.e Two Office Tables, two office Chairs (Swivel),
4 sundry chairs, 1 computer incl. screen, mouse and keyboard and the current
software, A4 Color Printer, UPS Unit, Air Conditioning, Lights etc., however, while
making payment to the contractor the Authority did not affect the recovery on
account of non-provision of said facilities. Moreover, as per agreement executed by
the Authority with the consultant M/s ECSP Pvt. Ltd, the cost was also included in
the agreement valuing Rs 2000,000 which was to be borne by the contractor as per
 agreement ibid. This resulted in non-recovery as under:
Sr. No Item of Supplies Prices
1. Site Office (Room) for employer and consultant (100,000 x 20 x
500,000
2000,000)
2. Two office Tables 15,000
3. Two office Chairs (Swivel) 12,000
4. 4 sundry chairs 12,000
5. 1 computer incl. screen, mouse and keyboard and the current
50,000
software,
6. A4 Color Printer, 25,000
7. UPS Unit, 45,000
8. Air Conditioning, 150,000
9. Lights, 11,000
10. Telecommunication, also International, 4,000
11. Internet, 5,000
12. Consumable & Stationary, 10,000
13. First Aid supplies, 10,000
14. Fire Extinguisher: Hand carried, portable, class “A” fire
10,000
extinguisher
Total 859,000
Violation of contractual obligations resulted in non-recovery of Rs 859,000 due to
non-provision of facilities.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 52 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
52 & 53 Non-recovery due to non-inspection by third party inspectors at factory in The required
Foreign country– Rs 1.00 million components of Audit
plant were recommen
As per Technical Specification (Agreement) Clause No. 11.3.1 (Factory imported and ds early
Test), all testing shall either be witnessed by a team comprising the Employer and assembled at KSB recovery
Engineer, or a neutral third-party inspector who shall be well versed with the testing Factory located in from the
Secretary to contractor.
procedure. The Bidder / contractor shall submit for the Employer’s approval three
Govt. of Hasan Abdal. The
internationally acclaimed inspectors. Bidders shall quote the rates of such third-party
Punjab HUD technical team of
inspection teams / companies in their Bids.
& Punjab the consultant and
Health
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to Client has
Engineering
contractor M/s KSB Pumps Company through 8th running bill against the work conducted the
Department.
“Construction, Installation and O&M of Water Filtration Plant (Work Order inspection before
Govt. of
No.PAPA/Dir(P&C)/03) in Faisalabad Division”. The contract was awarded for Rs dispatching to the
Punjab Lahore.
419,608,197 to the contractor. Audit observed that RO plants / Pre-Filtration plants
site by witnessing
were required to be import from Europe, USA and Japan only and factory tests / pre-
2. Chief
inspection was required to be carried out at Manufacturing Unit at the expenses of / verifying all the
Executive
contractor. However, as per agreement the Pre-inspection was not carried out, import documents
Officer (CEO),
therefore, recovery be made from contractor as under: and certification
Punjab Aab-e-
Pak Authority as per technical
Name of Amount of submittals/BOL,
(PAPA). Name of Work
Contractor Pre-inspection GDs etc. The site
“Construction, Installation and O&M of Water Filtration M/s KSB
visit report is
Plant Work Order No.PAPA/Dir(P&C)/03 in Faisalabad Pumps 1000,000
Division”. Company attached.
Violation of contractual obligations resulted in non-recovery of Rs 1000,000 due to
non-inspection by third party inspectors at factory in Foreign country.
 Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 53 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 53 & 54 Overpayment due to non-deduction of rebate offer by the contractor – Rs 3.341 Recovery is Audit
Govt. of million admitted. It is recommen
Punjab HUD being done in ds early
& Punjab Running IPC NO.
As per Acceptance letter No.PAPA/Dir(P&C)/03 in Faisalabad Division recovery
Health 11 of the
Engineering dated 12.04.2021, the contractor quoted / offered rebate @ 1.402% which was Contractor. from the
Department. required to be deducted while making payment. contractor.
Govt. of
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
contractor M/s KSB Pumps Company through 8th running bill against the work
2. Chief “Construction, Installation and O&M of Water Filtration Plant (Work Order
Executive
No.PAPA/Dir(P&C)/03) in Faisalabad Division”. The contract was awarded for Rs
Officer (CEO),
Punjab Aab-e- 419,608,197 to the contractor. Audit observed that while making payment to the
Pak Authority contractor rebate offered by the contractor @ 1.402 % was not deducted which
(PAPA). resulted loss to the Authority as under:

Total Value of
Rebate
Name of Work done Overpayme
Name of Work 1.402
Contractor upto 8th nt
%
running bill
“Construction, Installation and O&M
M/s KSB
of Water Filtration Plant Work Order 1.402
Pumps 238,328,600 3,341,367
No.PAPA/Dir(P&C)/03 in Faisalabad %
Company
Division”.
Violation of contractual obligations resulted in overpayment of Rs 3,341,367
due to non-deduction of rebate offered by the contractor.
 Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 54 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 54 & 55 Overpayment due to sanction of higher rates for PVC Pipe – Rs 9.479 million It is stated that Audit
Govt. of clarification recommen
Punjab HUD According to the instructions issued by the Finance Department, vide No. regarding the said ds for
& Punjab RO(Tech)FD-2-3/2004, dated 02.08.2004, rate analysis for the non-standardized item was soughed
early
Health items shall be prepared by the Executive Engineer, clearly giving the specifications by the contractor
Engineering vide his letter No. recovery
of the material used and approved by the competent authority not below the rank of
Department. Superintending Engineer on the basis of Input rates and prevailing market rates by 101-BWP dated along with
Govt. of obtaining three quotations of relevant quarter. The same will be placed on the 29-04-2021. The 12.50%
Punjab Lahore. departmental website and will also send a copy to Finance Department for same was markup
scrutiny/standardization. forwarded to the from the
2. Chief consultant for contractor.
Executive seeking further
Officer (CEO), Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to assistance and the
Punjab Aab-e- contractor M/s Idrees Govt. Contractor through 4th running bill against the work contractor was
Pak Authority “Construction, Installation and O&M of Water Filtration Plant (Work Order allowed to use
(PAPA). No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was 4“dia PVC blind
pipe instead of 6”
awarded for Rs 305,329,724 to the contractor. Audit observed that the authority got dia pipe vide
approved the rate for the item “Providing and installation of PVC Blind pipe Class letter No. 20378
B 6 inch dia etc” @ Rs 1379.85 per meter instead of admissible rate for PVC 4 inch dated June 01,
dia pipe @ Rs 751.20 per meter. Moreover, as per provision of TS Estimate, the 2021. Moreover,
Authority got executed the item “Drilling boring upto 6 inch dia” and installed payment of 4” dia
strainer for 4 inch dia and accordingly PVC Blind pipe in bore hole 4 inch dia was PVC blind pipe
was carried out @
required to be installed. Therefore, due to sanctioned of item with excess dia of 6
Rs 746.90 (MRS
inches instead of 4 inches resulted in over payment to the contractor as under: 1st Biannual 2020
District Sahiwal)
as per the
S Name of item TS Admissible Differen Qty paid Overpaym quantities
 rate for 4” executed at site
R Rate dia PVC ce ent
pipe according to the 6
15070 meter “dia bore hole as
Providing and installation of 9,479,030
1 PVC Blind pipe Class B 6 inch
1379.
751.20 629
(55 meter in bore + 55
(629 x verified by the
85 meter in Brine Bore =110
dia etc
meter x 137 nos)
15070) Resident
Engineer (copy of
Violation of the FD’s instructions resulted in overpayment amounting to Rs th
4 Running Bill is
9,479,030 due to sanction of higher rates for PVC Pipe. attached for ready
reference).

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 55 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 56 & 57 Overpayment due to allowing inadmissible carriage, installation charges and It is to clarify that the Audit
Govt. of extra 14% contractor’s profit and overhead charges in rate analyses – Rs additional carriage, recommen
Punjab HUD 18.609 million installation and ds for
& Punjab commissioning early
Health As per quotation/ Techno-Commercial Proposal dated, 14.01.2021 for RO charges were recovery
Engineering plants 2000 liter, Pre-Filtration Plants 2000 liter per hours, Arsenic Filter and included in the along with
Department. analysis of plants as 12.50%
Fluoride Filter @ Rs 1,600,000, Rs 351661, Rs 341,000 and Rs 370,000 each
Govt. of these are not markup
respectively and the rate/ price includes at site free of charges, inclusive of all incorporated in their
Punjab Lahore. from the
custom duties/ taxes, after sales technical services for six months besides erection, composite price and contractor.
2. Chief installation and commissioning charges. contractor needs to
Executive shift the plants from
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to his ware house to the
Officer (CEO),
Punjab Aab-e- contractor M/s Idrees Govt. Contractor through 4th running bill against the work site after completion
Pak Authority “Construction, Installation and O&M of Water Filtration Plant (Work Order of civil works.
(PAPA). No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was Further, quotations of
awarded for Rs 305,329,724 to the contractor. Audit observed that the Authority in the plants are taken
from its manufacturer
the rate analysis of items i.e. RO Filtration Plant 2000 liter per hour, Pre-Filtration
for preparation of the
Plant 2000 liter per hour, Arsenic Removal Filter and Fluoride Removal Filter estimate not from the
included separately carriage charges, installation and commissioning of plants contractor. Contractor
charges. Further, the Authority also added the 20% contractor’s profit and overhead has to buy the plants
charges instead of only 6% service charges as in the rates/price taxes were already from manufacturer’s
included the price. Therefore, excess payment was made to the contractor as under: cost and his profit is
given because of the
fact that he purchases
the items from his
S Qty Overpayme
R
Name of item TS Rate Excess rate
paid nt
finances and then
1 RO Filtration Plants 1932000 Rs 237400 61 nos 14,481,400 claim from the
 Government. The
instant process takes
10000+(10000x20%=12000+
2000 liter per hour etc considerable time
14% extra profit of Rs 1610000x14%=225400)
Rs 62632 which justifies his
Pre Filtration Plants
2
2000 liter per hour etc
433993 10000+ (10000x20%=12000+ 52 nos 3,256,864 profit. Further the
14% extra profit of Rs 361661x14%=50632) payment against the
Rs 61140
3 Arsenic Removal Filter 421200 10000+ (10000x20%=12000+ 07 nos 427,980
said items were made
14% extra profit of Rs 351000x14%=49140) according to the
Submersible pump Rs 5820 quoted rates of the
4 Capacity 4M3 per hour 40000 1000+ (1000x20%=1200+ 76 nos 442,320 contractor beyond the
etc 14% extra profit of Rs 33000x14%=4620)
870300
rates sanctioned in
TS estimate. Hence
no any overpayment
Violation of the contractual obligations resulted in overpayment amounting was carried out by the
to Rs 18,608,564. authority. So, the
para may be settled
please.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 56 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 57 & 58 Overpayment due to allowing inadmissible 20% contractor’s profit and Audit
Govt. of overhead charges on 17% GST in rate analyses – Rs 4.978 million It is clarified that recommen
Punjab HUD quotations are
ds for
& Punjab According to FD’s instruction No. RO(Tech)FD-18-23/2004 dated taken from the
early
Health 21.09.2004, the rate analysis for a non-standardized item shall be approved by SE, manufacturer for
Engineering recovery
giving specifications of the material/inputs used as per FD’s website. The the purpose of
Department. estimation. The TS along with
standardized analysis shall be used to work out the rate of items as far as possible.
Govt. of estimate is an 12.50%
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to internal document markup
contractor M/s Idrees Govt. Contractor through 4th running bill against the work of the department from the
2. Chief “Construction, Installation and O&M of Water Filtration Plant (Work Order which is not shared contractor.
Executive
No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was with any
Officer (CEO),
Punjab Aab-e- awarded for Rs 305,329,724 to the contractor. Audit observed that the Authority in contractor. The
Pak Authority the rate analysis of items i.e. RO Filtration Plant 2000 liter per hour, Pre-Filtration contractors quote
their rates against
(PAPA). Plant 2000 liter per hour, Arsenic Removal Filter and added the 20% contractor’s
the composite items
profit and overhead charges on 17% GST. Therefore, excess payment was made to
described in BOQ
the contractor as under: served to them in
S TS Qty Overpayme bidding documents.
Name of item Excess rate
R Rate paid nt So, in this case
Rs 65688 composite rate
RO Filtration Plants 2000 liter 193200
1 (1932000x17%=328440x20%=65 61 nos 4,006,968
per hour etc 0 were quoted by the
688)
Rs 14755 contractor which
Pre Filtration Plants 2000 liter were accepted and
2 433993 (433993x17%=73778x20%=1475 52 nos 767,260
per hour etc
5) allotted
Rs 14320 accordingly.
3 Arsenic Removal Filter 421200 (421200x17%=71604x20%=1432 07 nos 100,240
Payments have
0)
been made
 according to the
4
Submersible pump Capacity
40000
Rs 1360
76 nos 103,360 quoted/allotted
4M3 per hour etc (40000x17%=6800 x 20%) rates. Calculations
970860
in TS Estimate are
also correct.
Violation of the contractual obligations resulted in overpayments amounting So, keeping in view
to Rs 4,977,828. of above facts para
may please be
settled.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 57 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 58 & 59 Overpayment due to incorrect measurements – Rs 1.918 million It is stated that, in Audit
Govt. of the 4th running recommen
Punjab HUD According to instruction No. 7 of Preface of Measurement Book, all bill against the ds for
& Punjab payments for work or supplies are based on the quantities recorded in the MB, it is said work, the early
Health incumbent upon the person taking the measurements to record the quantities clearly item providing recovery
Engineering and accurately. and laying PVC along with
Department. blind pipe 4” dia 12.50%
Govt. of Director Project, Punjab Aab-e-Pak Authority, Lahore made payment was paid markup
Punjab Lahore. to contractor M/s Idrees Govt. Contractor through 4th running bill against the work according to the from the
“Construction, Installation and O&M of Water Filtration Plant (Work Order MRS 1st Biannual contractor.
2. Chief No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was 2020 i.e., @Rs
Executive 746.90 and as per
awarded for Rs 305,329,724 to the contractor. Audit observed that the Authority
Officer (CEO), the depth of the
Punjab Aab-e- recorded measurements and made payment of items “P/l pvc blind pipe 4 inch dia bore. Bill copy
Pak Authority and strainer 4 inch dia” for quantities of 65 meter but the item of boring was paid for and As Built
(PAPA). the quantities of 60 meter only per pump. Further, as per feasibility Study Report by Drawings of
Punjab Aab-e-Pak Authority during December, 2022 also revealed that quantities of boreholes are
boring and PVC Blind pipe+Strainer were the same for each pump. Hence, the attached. Hence
Authority made excess payment of 5 meter of each pump and resulted in no overpayment
is carried out.
overpayment to the contractor as under:
S Rate Excess qty of each pump and Overpaym
Name of item
R Paid Brine boring ent
1370 meter 1,918,000
P/l PVC blind pipe 4 inch
1 1400 (5 meter+5 meter =10 meter x 137 (1400 x
dia etc
nos) 1370)
 Incorrect measurements resulted in overpayment of Rs 1,918,000 to the
contractor.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 58 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 59 & 60 Overpayment due to allowing and sanction of higher dia of PPRC pipe 6 inch It is to clarify that Audit
Govt. of dia on the head of submersible pump of 3 inch dia – Rs 0.978 million the provision of recommend
Punjab HUD the item P/F of 6” s for early
& Punjab According to FD’s instruction No. RO(Tech)FD-18-23/2004 dated 21.09.2004, the dia PPRC pipe, recovery
Health rate analysis for a non-standardized item shall be approved by SE, giving specifications of PN 20 was along with
Engineering the material/inputs used as per FD’s website. The standardized analysis shall be used to neither sanctioned 12.50%
Department. work out the rate of items as far as possible. in TS estimate markup
Govt. of nor it was paid in from the
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractor
Punjab Lahore. 8th Running bill of contractor.
M/s Idrees Govt. Contractor through 4th running bill against the work “Construction, the contractor.
2. Chief Installation and O&M of Water Filtration Plant (Work Order No.PAPA/Dir(P&C)/05) in However, the rate
Executive Sahiwal Division dated 19.04.21”. The contract was awarded for Rs 305,329,724 to the of the item P/F,
Officer (CEO), contractor. Audit observed that the Authority in the TS Estimate approved the item jointing, and
Punjab Aab-e- “P/fixing PPRC 6-inch dia pipe PN20 pressure etc” at the rate Rs 1263 per meter instead of testing PPRC, PN
Pak Authority actual admissible dia of PPRC pipe 63mm/2.5 inch @ Rs 906 per metere. Therefore, 20 ,63mm was
(PAPA). incorrect TS estimate was approved by the Chief Engineer/DG (Project) for the item and incorporated in
accordingly payment was made to the contractor as under: TS estimate as
per the analysis
To
S Item to be Rate Exces Qty Overpayme i.e., @Rs 1263/m
Item Sanctioned be
R sanctioned paid s rate paid nt (analysis
paid
attached) which is
2740
paid according to
meter
P/fixing PPRC 6 P/fixing PPRC 2.5 978,180 the quoted rate of
(20
1 inch dia pipe PN20 inch dia pipe PN20 1263 906 357
meter x
(2740 x the contractor.
pressure etc pressure etc
137
357) According to the
nos) PC-1 the item
providing and
fixing of PPRC
Violation of the contractual obligations resulted in overpayments amounting to Rs 63mm is
 segregated with
elbows, socket,
unions, clamp etc.
having separate
rates and RS 906
is only the rate of
pipe excluding
fittings. However,
978,180.
composite rate of
Rs 1263 has been
inserted in TS
that was being
paid according to
the quantity
executed at site as
per quoted rate of
the contractor.
Relevant
documents are
attached.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 59 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 60 & 61 Non-recovery due to use of substandard bricks ‒ Rs 3.544 million The Audit
Govt. of representative recommen
Punjab HUD As per section 801 and section 1041-8 of Standard Specification for Roads & brick samples ds early
& Punjab Bridges Construction 1997, read with FD’s material rates of item No.07.001, the were randomly recovery
Health standard size of bricks was 9″ x 4-1/2″ x 3″ and the crushing strength was 2000 PSI. taken from the from the
Engineering Further, as per MRS remarks column chapter “Brick Works”, if 2nd and 3rd class stacks and were contractor.
Department. bricks were used, the item rate would be reduced by 7% and 14%, respectively. sent to the
Govt. of
laboratory for its
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
testing. The
contractor M/s Idrees Govt. Contractor through 4th running bill against the work
2. Chief results were
“Construction, Installation and O&M of Water Filtration Plant (Work Order satisfactory and
Executive
No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was meet the required
Officer (CEO),
Punjab Aab-e- awarded for Rs 305,329,724 to the contractor. The Authority made payment for the criteria of
Pak Authority items “Pacca brick work cement sand mortar etc.”. Audit observed that as per lab compressive
(PAPA). test reports of Laboratories, the strength of the bricks was below 2000 psi and size strength of first-
of bricks was 8.7 x 4.3 x 2.7, but the department did not reduce the rate by 14%. The class bricks.
contractor used the 3rd class bricks in the work. Hence, recovery be made from the Relevant test
contractor as under: reports are
attached. So, it is
S Recovery to be Overpaym
Name of item TS Rate Qty paid requested that the
R made ent
para may please
Rs 900.24 per cum 2058 cum
Pacca brick work in 6430.25 be settled.
1 (6430.25 x14%=945 (18.216 cum 1,852,694
F&P 1:5 etc per cum
per cum) x 113 nos)
 Rs 975.09 per cum 1734 cum
Pacca brick work in 6964.90
2 (7300x14%=975.09 (15.35 cum x 1,690,806
ground floor 1:5 etc per cum
per cum) 113 nos)
3543500

Violation of the specifications and MRS resulted in non-recoveries

amounting to Rs 3,543,500.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 60 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 61 & 62 Non-recovery due to payment of higher rates than schedule rates ‒ Rs 0.186 The Authority Audit
Govt. of million sanctioned the recommen
Punjab HUD rate as per MRS ds early
& Punjab As per MRS item no. 5(c) under Chapter-6(Concrete) based on 1 st Bi-Annual item No. 6.6 (aii) recovery
Health 2020 Sahiwal, the rate of item “Cement, concrete, placing PCC ratio 1:1.5:3 etc” the but the item was from the
Engineering rate was Rs 8955 per cubic meter. neither executed contractor.
Department.
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to nor paid to the
Govt. of
Contractor in 4th
Punjab Lahore. contractor M/s Idrees Govt. Contractor through 4th running bill against the work
Running Bill
“Construction, Installation and O&M of Water Filtration Plant (Work Order
2. Chief (Copy attached).
No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was
Executive So, it is requested
awarded for Rs 305,329,724 to the contractor. Audit observed that in the TS that the para may
Officer (CEO),
Punjab Aab-e- Estimate the Chief Engineer/DG Projects, Punjab Aab-e-Pak Authority, Lahore please be settled.
Pak Authority sanctioned the rate of Rs 10588.95 per cubic meter by taking the MRS item no.6 of
(PAPA). Chapter-6 RCC instead of applicable MRS item no. 5 of Chapter-6 for PCC 1:1.5:3
etc @ Rs 9006 per cubic meter. Hence, excess rate was sanctioned and made
payment to contractor on higher side as under:

S Admissible Excess Overpaym

Name of item TS Rate Qty paid
R Rate Rate ent
Cement, concrete, 114 cum
10588.95
1 placing PCC ratio 8955 1633.95 (1.50 cum 186,270
per cum
1:1.5:3 etc x 76 nos)
Violation of the specifications and MRS resulted in non-recoveries
amounting to Rs 186,270.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 61 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 62 & 63 Overpayment due to allowing extra 7.5% contractor’s profit on electrical items It is to clarify that Audit
Govt. of – Rs 00.568 million the item is for recommen
Punjab HUD supplying, ds for
& Punjab As per FD’s template notified by Finance Department, there was provision early
testing, &
Health of 12.5% contractor’s profit and overhead charges on electrical items. recovery
Engineering installation on site along with
Department. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to as a complete job 12.50%
Govt. of contractor M/s Idrees Govt. Contractor through 4th running bill against the work rather than only markup
Punjab Lahore. “Construction, Installation and O&M of Water Filtration Plant (Work Order supply of items. from the
No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was Therefore, 20% contractor.
2. Chief awarded for Rs 305,329,724 to the contractor. Audit observed that the Authority in contractor’s profit
Executive
the rate analysis of electrical items i.e. Supplying and fixing PVC pipe, GI Pipe, is incorporated in
Officer (CEO),
Punjab Aab-e- Single core electrical cable, tubelight lights fans, exhaust fan, Distribution board the analysis.
Pak Authority items allowed 20% contractor’s profit and overhead charges instead of only 12.50%. Keeping in view
(PAPA). Therefore, excess payment was made to the contractor as under: of above fact, the
subject para may
S Overpaym
Name of item TS Rate Excess rate be settled please.
R ent
electrical items i.e. Supplying and fixing
Rs 66,966 Rs 5022 567,537
PVC pipe, GI Pipe, Single core electrical
1 per plant (66966x7.5%= (5022x113
cable, tubelight lights fans, exhaust fan,
room Rs 5022) nos)
Distribution board items
 Violation of the contractual obligations resulted in overpayments amounting
to Rs 567,537.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 62 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 63 & 64 Non-recovery due to installation of substandard RO plants and Pre-Filtration It is stated that Audit
Govt. of Plants – Rs 7.021 million RO plant recommen
Punjab HUD membranes duly ds early
& Punjab As per Technical Specification of RO 2000 litere per hour plant (at Page-121 recovery.
certified by NSF,
Health of PC-1), pre-filtration control of carbonate, sulphate, fouride and silica scalling
Engineering high pressure
should of make Europe, USA, Japan only, RO membrane should also be of origin
Department. pumps, filter
USA, West Europe and Japan only. Further, impeller material of bore /submersible
Govt. of media etc. have
pumps, feed pumps (horizontal low pressure pumps) and high pressure pumps
Punjab Lahore. been imported
should be made of SS-304 material and horizontal feed low pressure pump should
from USA,
2. Chief be of working pressure 6-bar. Further, sand filtration and carbon filtration and RO
Germany, Sri
Executive housing should be made of material FRP(Fiber-glass Reinforced Plastic) only.
Lanka, Thailand
Officer (CEO),
Punjab Aab-e- Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to etc. further
Pak Authority contractor M/s Idrees Govt. Contractor through 4th running bill against the work components have
(PAPA). “Construction, Installation and O&M of Water Filtration Plant (Work Order been installed as
No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was per the
awarded for Rs 305,329,724 to the contractor. Audit observed that as per import specifications
documents, the contractor imported the carbonate, sulphate, fluoride and silica being set in the
scalling, RO Membrane, filter media sand, sand filters, High pressure pumps from PC-1/TS.
locally or China instead of origin Europe, USA and Japan only. Moreover, the RO According to the
Model BW30-4040 as per PC-1 had the ability to remove salt rejection 99.50%, technical sanction
whereas the contractor installed the Model RE4040-BLN (CSM) which can salt the minimum salt
rejection only 99.20%. Further, the vessel material of sand & carbon filter and RO rejection must be
Housing membrane was PVC (Polyvinyl Chloride). Further, in the submersible, feed 99%. Contractor
 submitted the
low pressure pump and high pressure pump, the impeller was of bronze/ brass technical data of
metallic impeller. Hence, the contractor supplied the substandard RO and Pre- the plant that was
filtration plants, which resulted in loss to the Authority as under: reviewed,
S TS Rate to be Qty Overpaym finalized and
Name of item
R Rate reduced paid ent consented by the
RO Filtration Plants 2000 litre per 19320 Rs 96600 consultants and
1 61 nos 5,892,600
hour etc 00 (1932000x5%) membranes were
Pre Filtration Plants 2000 litre per 43399 Rs 21699
2 52 nos 1,128,348 installed as per
hour etc 3 (433993x5%)
the required
7020948
criteria with
minimum salt
Violation of PC-1 instruction resulted in non-recovery of Rs 7,020,948 due rejection of 99%.
to use of sub-standard RO Plants. Technical
submittal is
attached.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 63 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 64 & 65 Non-recovery due to non-provision of facilities – Rs 0.859 million Site offices have Audit
Govt. of been established recommen
Punjab HUD As per Technical Specification (Agreement) Clause No. 2.14.10 (Engineer’s ds early
by the authority,
& Punjab and Employer Site office), the contractor should provide an adequate fully equipped, recovery
with all necessary
Health static, prefabricated or mobile office with sufficient space and washing and sanitary from the
Engineering facilities provided contractor.
facilities for the Engineer’s representative and Employer’s representative. These
Department. by the contractor
offices shall have a minimum space f 25 m2 for each, lockable entrances, openable
Govt. of to fulfil the
windows and serviceable finishes. Each office shall be equipped at least but not
Punjab Lahore. contractual
limited to Two office Tables, Two office Chairs (Swivel), 4 sundry chairs, 1
obligation.
2. Chief computer incl. screen, mouse and keyboard and the current software, A4 Color
Executive Printer, UPS Unit, Air Conditioning, Lights, Telecommunication, also International,
Officer (CEO), Internet, Consumable & Stationary, First Aid supplies, Fire Extinguisher: Hand
Punjab Aab-e- carried, portable, class “A” fire extinguisher for temporary offices and slimier
Pak Authority
spaces all in accordance with prevailing building codes.
(PAPA).
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
contractor M/s Idrees Govt. Contractor through 4th running bill against the work
“Construction, Installation and O&M of Water Filtration Plant (Work Order
No.PAPA/Dir(P&C)/05) in Sahiwal Division dated 19.04.21”. The contract was
awarded for Rs 305,329,724 to the contractor. Audit observed that the contractor did
not provide the facilities to employer /Authority i.e Two Office Tables, two office
Chairs (Swivel), 4 sundry chairs, 1 computer incl. screen, mouse and keyboard and
the current software, A4 Color Printer, UPS Unit, Air Conditioning, Lights etc.,
however, while making payment to the contractor the Authority did not affect the
recovery on account of non-provision of said facilities. Moreover, as per agreement
executed by the Authority with the consultant M/s ECSP Pvt. Ltd, the cost was also
included in the agreement valuing Rs 2000,000 which was to be borne by the
contractor as per agreement ibid. This resulted in non-recovery as under:
Sr. No Item of Supplies Prices
1. Site Office (Room) for employer and consultant (100,000 x 20 x
500,000
2000,000)
2. Two office Tables 15,000
3. Two office Chairs (Swivel) 12,000
4. 4 sundry chairs 12,000
5. 1 computer incl. screen, mouse and keyboard and the current software, 50,000
6. A4 Color Printer, 25,000
7. UPS Unit, 45,000
8. Air Conditioning, 150,000
9. Lights, 11,000
10. Telecommunication, also International, 4,000
11. Internet, 5,000
12. Consumable & Stationary, 10,000
13. First Aid supplies, 10,000
14. Fire Extinguisher: Hand carried, portable, class “A” fire extinguisher 10,000
Total 859,000

Violation of contractual obligations resulted in non-recovery of Rs 859,000

due to non-provision of facilities.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 64 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 65 & 66 Non-recovery due to non-inspection by third party inspectors at factory in The required Audit
Govt. of Foreign country– Rs 0.500 million components of recommen
Punjab HUD plant were ds early
& Punjab recovery
As per Technical Specification (Agreement) Clause No. 11.3.1 (Factory imported and
Health from the
Engineering Test), all testing shall either be witnessed by a team comprising the Employer and assembled at KSB contractor.
Department. Engineer, or a neutral third-party inspector who shall be well versed with the testing Factory located in
Govt. of procedure. The Bidder / contractor shall submit for the Employer’s approval three Hasan Abdal. The
Punjab Lahore. internationally acclaimed inspectors. Bidders shall quote the rates of such third-party technical teams of
inspection teams / companies in their Bids. the consultant and
2. Chief Client have
Executive
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to conducted the
Officer (CEO),
Punjab Aab-e- contractor M/s Idrees Govt. Contractor through 4th running bill against the work inspection before
Pak Authority “Construction, Installation and O&M of Water Filtration Plant Work Order dispatching to the
(PAPA). No.PAPA/Dir(P&C)/05 in Sahiwal Division dated 19.04.21”. The contract was site by witnessing
awarded for Rs 305,329,724 to the contractor. Audit observed that RO plants / Pre- / verifying all the
Filtration plants were required to be import from Europe, USA and Japan only and import documents
factory tests / pre-inspection was required to be carried out at Manufacturing Unit at and certification
the expenses of contractor. However, as per agreement the Pre-inspection was not as per technical
carried out, therefore, recovery be made from contractor as under: submittals/BOL,
Name of Work
Name of Amount of GDs etc. The site
Contractor Pre-inspection visit report is
“Construction, Installation and O&M of Water Filtration
M/s Idrees Govt. attached.
Plant Work Order No.PAPA/Dir(P&C)/05 in Sahiwal 500,000
Contractor
Division”.
 Violation of contractual obligations resulted in non-recovery of Rs 500,000
due to non-inspection by third party inspectors at factory in Foreign country.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 87 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 88 & 89 Overpayment due to less deposit of GST than borne by the Authority – Rs Related to Audit
Govt. of 134.8950 million Finance recommen
Punjab HUD ds for
& Punjab As per FBR’s letter No.1(42)STM/2009/99638-R dated 24.07.2013, the early
Health contractors engaged should make purchases only from sales tax registered persons. recovery
Engineering The contractors carrying out government works against public tender are required to from the
Department. have a Bill of Quantities (BOQ). The contracting department /organization must contractor
Govt. of s.
require such contractors to present sales tax invoices of all the material mentioned in
Punjab Lahore.
the BOQ as evidence of its legal purchase, before payment is released. Further, as
2. Chief per Rule 4 of PPRA Rules, 2014, a procuring agency, while making any
Executive procurement, shall ensure that the procurement is made in a fair and transparent
Officer (CEO), manner, the object of procurement brings value for money.
Punjab Aab-e-
Pak Authority Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
(PAPA). different contractors through running bills against the various works in different
Zone. Audit observed that the Authority in the rate analyses of Filtration Plants
allowed 17% General Sales Tax in TS Rate. The contractors procured/ imported the
Filtration plants from foreign countries (China & Koria) and as per Goods
Declaration (GD) only Rs 6910 were deposited on account of Taxes (GST, Custom
Duties etc.) against the 328,440 and 73,779 for each unit. Audit was of the opinion
that GST was indirect Tax, and full amount borne by the Authority was required to
be recovered from the contractors as under:

Sr Name of Work Name of Name of items Rate Un Value of Taxes GST, Overpay
 Custom Duty
. deposited into
Contract Approv 17%
N it FBR As per ment
or ed GST
o. Goods
Declaration
RO Filtration Plants
“Construction, Installation and 193200 30,873,3
2000 litre per hour 94 649,540 30,223,820
O&M of Water Filtration Plant M/s KSB 0 60
etc
1 Work Order Pumps
Pre Filtration Plants
No.PAPA/Dir(P&C)/03 in Company 3,246,26
2000 litre per hour 433993 44 304,040 2,942,228
Faisalabad Division”. 8
etc
“Construction, Installation and RO Filtration Plants
M/s 193200 20,034,8
O&M of Water Filtration Plant 2000 litre per hour 61 421,510 19,613,330
Idrees 0 40
Work Order etc
2 Govt.
No.PAPA/Dir(P&C)/05 in Pre Filtration Plants
Contracto 3,836,49
Sahiwal Division dated 2000 litre per hour 433,993 52 359,320 3,477,178
r 8
19.04.21”. etc
RO Filtration Plants
“Construction, Installation and 193200 6,240,36
M/s 2000 litre per hour 19 131,290 6,109,070
O&M of Water Filtration Plant 0 0
Rashid etc
3 Work Order
Ashraf & Pre Filtration Plants
No.PAPA/Dir(P&C)/11 in DG 3,688,94
Bro. 2000 litre per hour 433,993 50 345,500 3,343,441
Khan & Rajanpur Division 1
etc
RO Filtration Plants
“Construction, Installation and 193200 12,809,1
M/s 2000 litre per hour 39 269,490 12,539,670
O&M of Water Filtration Plant 0 60
Impreza etc
4 Work Order
Construct Pre Filtration Plants
No.PAPA/Dir(P&C)/04 in DG 5,016,95
ion 2000 litre per hour 433,993 68 469,880 4,547,079
Khan Division 9
etc
RO Filtration Plants
“Construction, Installation 193200 17,407,3
2000 litre per hour 53 366,230 17,041,090
and O&M of Water Filtration M/s KSB 0 20
etc
5 Plant (Work Order Pumps
Pre Filtration Plants
No.PAPA/Dir(P&C)/06) in Company 1,401,79
2000 litre per hour 433,993 19 131,290 1,270,507
Multan Division”. 7
etc
RO Filtration Plants
“Construction, Installation 193200 21,020,1
M/s 2000 litre per hour 64 442,240 20,577,920
and O&M of Water Filtration 0 60
Impreza etc
6 Plant (Work Order
Construct Pre Filtration Plants
No.PAPA/Dir(P&C)/07) in
ion 2000 litre per hour 433,993 9 664,009 62,190 601,819
Bahwalpur Division”.
etc
RO Filtration Plants
“Construction, Installation and M/s Mian 193200 5,911,92
2000 litre per hour 18 124,380 5,787,540
O&M of Water Filtration Plant Hydro 0 0
etc
7 (Work Order Construct
Pre Filtration Plants
No.PAPA/Dir(P&C)/08) in ion 10 7,525,43
2000 litre per hour 433,993 704,820 6,820,619
Bahwalpur & Multan Division”. Engineers 2 9
etc
139,677 134,895,
Total         4,781,720
  ,031 311

Violation of the FBR instructions resulted in overpayment amounting to Rs

134,895,311.
WORKING PAPER OF PRINTED DRAFT PARA NO. 88 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 89 & 90 Overpayment due to allowing inadmissible carriage, installation charges and Related to South Audit
Govt. of extra 14% contractor’s profit and overhead charges in rate analyses – Rs Zone recommen
Punjab HUD 42.903 million ds for
& Punjab early
Health As per quotation/ Techno-Commercial Proposal dated, 14.01.2021 for RO recovery
Engineering plants 2000 liter, Pre-Filtration Plants 2000 liter per hours, Arsenic Filter and along with
Department. Fluoride Filter @ Rs 1,600,000, Rs 351661, Rs 341,000 and Rs 370,000 each 12.50%
Govt. of markup
respectively and the rate/ price includes at site free of charges, inclusive of all
Punjab Lahore. from the
custom duties/ taxes, after sales technical services for six months besides erection, contractor
2. Chief installation and commissioning charges. s.
Executive
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
Officer (CEO),
Punjab Aab-e- different contractors against the different works “Construction, Installation and
Pak Authority O&M of Water Filtration Plants in Bahawalpur & Multan Divisions. Audit observed
(PAPA). that the Authority in the rate analysis of items i.e. RO Filtration Plant 2000 liter per
hour, Pre-Filtration Plant 2000 liter per hour, included separately carriage charges,
installation and commissioning of plants charges. Further, the Authority also added
the 20% contractor’s profit and overhead charges instead of only 6% service charges
as in the rates/price taxes were already included the price. Therefore, excess
payment was made to the contractors as under:
Name of Qty
S Overpayme
Name of Work Name of item TS Rate Excess rate pai
R Contractor nt
d
“Construction, Installation and O&M of Rs 237400
Water Filtration Plant Work Order M/s Impreza RO Filtration 10000+(10000x20%=12000
1 Plants 2000 liter 1932000 + 64 15,193,600
No.PAPA/Dir(P&C)/07 in Bahawalpur Construction
per hour etc 14% extra profit of Rs
Division 1610000x14%=225400)
2 Do- Do- Pre Filtration 433993 Rs 62632 9 563,688
 10000+
Plants 2000 liter (10000x20%=12000+
per hour etc 14% extra profit of Rs
361661x14%=50632)
“Construction, Installation and O&M of M/s Mian Rs 237400
Water Filtration Plant (Work Order Hydro RO Filtration 10000+
3 Plants 2000 liter 1932000 (10000x20%=12000+ 18 4,273,200
No.PAPA/Dir(P&C)/08) in Bahwalpur & Construction
per hour etc 14% extra profit of Rs
Multan Division”. Engineers 1610000x14%=225400)
Rs 62632
Pre Filtration 10000+
4 Do- Do- Plants 2000 liter 433993 (10000x20%=12000+ 102 6,388,464
per hour etc 14% extra profit of Rs
361661x14%=50632)
Rs 237400
“Construction, Installation and O&M of
RO Filtration 10000+
Water Filtration Plant Plant (Work Order M/s Progressive
5 Plants 2000 liter 1932000 (10000x20%=12000+ 42 9,970,800
No.PAPA/Dir(P&C)/02) in Lahore International
per hour etc 14% extra profit of Rs
Division”.
1610000x14%=225400)
Rs 62632
Pre Filtration 10000+
6 Do- Do- Plants 2000 liter 433993 (10000x20%=12000+ 104 6,513,728
per hour etc 14% extra profit of Rs
361661x14%=50632)
Total 2770988
0

Violation of the contractual obligations resulted in overpayment amounting

to Rs 42,903,480.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 89 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 90 & 91 Non- recovery of liquidated damages due to non-completion of Schemes within As the Project is Audit
Govt. of stipulated period Rs 332.738 million ongoing and recommen
Punjab HUD provisional ds early
& Punjab According to Clause 39 of the Agreement, the maximum of 10% of the recovery
Health contract cost was required to be imposed / recovered from the contractor if payments have from
Engineering contractor fails to complete the work with in stipulated period as per acceptance been made to the contractor
Department. letter. Contractor. s.
Govt. of EOTs, as
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore, awarded 14 Schemes requested by the
amounting Rs 3,327,381,349 during April, 2021 with stipulated period of Contractor has
2. Chief completion of 6 months, but the contractors did not complete the works within been assessed by
Executive
stipulated period of completion as per acceptance letters /Agreements. Audit the Engineer and
Officer (CEO),
Punjab Aab-e- observed that as per progress reports of the schemes, the physical and financial approved/granted
Pak Authority progress was very slow. The Schemes were fully funded hence; the contractors were by the Engineer
(PAPA). at fault. Therefore, penalty for delay in completion of works was required to be In charge
imposed /recovered from the contractors @10% as under: according to the
Sr
No.
Contract No. Contractor Name
Agreement
Amount
10% Penalty prevailing site
1 Contract No. 01 (Rawalpindi) Hayat Ali & Co 275,306,168 27,530,617 conditions. The
2 Contract No. 02 (Lahore) Progressive International 347,936,452 34,793,645
3 Contract No. 03 (Faisalabad) KSB Pumps Company 419,608,197 41,960,820 further Penalty of
4 Contract No. 04 (D.G Khan)
Impreza Constructions Pvt
287,321,308 28,732,131 the delays would
Ltd
5 Contract No. 05 (Sahiwal) M. Idrees Govt. Contractor 305,329,724 30,532,972 be assessed and
6 Contract No. 06 (Multan) KSB Pumps Company 212,000,000 21,200,000
Impreza Constructions Pvt implemented
7 Contract No. 07 (Bahawalpur) 229,998,909 22,999,891
Ltd upon completion
8 Contract No. 08 (Bahawalpur) Mian Hydro Construction 244,274,484 24,427,448
9 Contract No. 09 (Sargodha) Brisk International Pvt Ltd 421,285,635 42,128,564 of the project.
10 Contract No. 10 (Gujranwala) R.G Builders 206,371,286 20,637,129
11 Contract No. 11 (D.G Khan & Rashid Ashraf & Brothers 117,394,521 11,739,452
Approval of
 Rajanpur) EOTs attached for
Contract No. 11-A (D.G Khan &
12 Albario Engnr. Pvt Ltd 61,202,370 6,120,237
Rajanpur) ready reference.
13 Contract No. 12 (Sahiwal-Okara) KSB Pumps Company 57,100,293 5,710,029
14 Contract No. 297 (Jhak Jumrah) Ch. Construction Company 142,252,002 14,225,200 So, it is requested
  TOTAL    3,327,381,349 332,738,135
that the para
please settled.

Violation of contractual obligations resulted in non-imposition / recovery of

Rs 332,738,135 million of liquidated damages.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 90 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 91 & 92 Overpayment due to allowing inadmissible 20% contractor’s profit and Related to Audit
Govt. of overhead charges on 17% GST in rate analyses – Rs 11.318 million South Zone recommends
Punjab HUD for early
& Punjab According to FD’s instruction No. RO(Tech)FD-18-23/2004 dated recovery
Health 21.09.2004, the rate analysis for a non-standardized item shall be approved by SE, along with
Engineering giving specifications of the material/inputs used as per FD’s website. The 12.50%
Department. standardized analysis shall be used to work out the rate of items as far as possible. markup from
Govt. of the
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to contractors.
different contractors against the different works “Construction, Installation and
2. Chief O&M of Water Filtration Plants in Bahawalpur & Multan and Lahore Divisions.
Executive
Audit observed that the Authority in the rate analysis of items i.e. RO Filtration
Officer (CEO),
Punjab Aab-e- Plant 2000 litre per hour, Pre-Filtration Plant 2000 liter per hour, added the 20%
Pak Authority contractor’s profit and overhead charges on 17% GST. Therefore, excess payment
(PAPA). was made to the contractor as under:
Name of
S Agreement Qty Overpayme
Name of Work Contracto Name of item TS Rate Excess rate
R rate paid nt
r
“Construction, Installation and
M/s RO Filtration Rs 65688
O&M of Water Filtration Plant
Impreza Plants 2000 (1932000x17
1 Work Order 1932000 1958000 64 4,204,032
Constructi litre per hour %=328440x2
No.PAPA/Dir(P&C)/07 in
on etc 0%=65688)
Bahawalpur Division
Pre Filtration Rs 14755
Plants 2000 (433993x17%
2 Do- Do- 433993 428000 9 132,795
litre per hour =73778x20%
etc =14755)
“Construction, Installation and M/s Mian
RO Filtration Rs 65688
O&M of Water Filtration Plant Hydro
Plants 2000 (1932000x17
3 (Work Order Constructi 1932000 1958000 18 1,182,384
litre per hour %=328440x2
No.PAPA/Dir(P&C)/08) in on
etc 0%=65688)
Bahwalpur & Multan Division”. Engineers
 Pre Filtration Rs 14755
Plants 2000 (433993x17%
4 Do- Do- 433993 428000 102 1,505,010
litre per hour =73778x20%
etc =14755)
“Construction, Installation and M/s RO Filtration Rs 65688
O&M of Water Filtration Plant Progressiv Plants 2000 (1932000x17
5 Plant (Work Order e 1932000 1958000 42 2,758,896
litre per hour %=328440x2
No.PAPA/Dir(P&C)/02) in Internation
Lahore Division”. al etc 0%=65688)
Pre Filtration Rs 14755
Plants 2000 (433993x17%
6 Do- Do- 433993 428000 104 1,534,520
litre per hour =73778x20%
etc =14755)
Total 7113605

Violation of the contractual obligations resulted in overpayment amounting

to Rs 11,317,637.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 91 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 92 & 93 Overpayment due to incorrect measurements – Rs 2.010 million Related to South Audit
Govt. of Zone recommen
Punjab HUD According to instruction No. 7 of Preface of Measurement Book, all ds for
& Punjab payments for work or supplies are based on the quantities recorded in the MB, it is early
Health incumbent upon the person taking the measurements to record the quantities clearly recovery
Engineering and accurately. along with
Department. 12.50%
Govt. of Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to markup
Punjab Lahore. different contractors against the different works “Construction, Installation and from the
O&M of Water Filtration Plants in Bahawalpur & Multan Divisions. Audit observed contractor
2. Chief that the Authority recorded measurements and made payment of items “P/l pvc blind s.
Executive
pipe 4 inch dia and strainer 4 inch dia” for quantities of 65 meter but the item of
Officer (CEO),
Punjab Aab-e- boring was paid for the quantities of 60 meter only per pump. Further, as per
Pak Authority feasibility Study Report by Punjab Aab-e-Pak Authority during December, 2022
(PAPA). also revealed that quantities of boring and PVC Blind pipe+Strainer were the same
for each pump. Hence, the Authority made excess payment of 5 meter of each pump
and resulted in overpayment to the contractors as under:
Rate Excess qty of
S Name of Name of
Name of Work Paid / TS each pump and Overpayment
R Contractor item
Rate Brine boring
“Construction,
Installation and O&M of M/s
P/l PVC 730 meter
Water Filtration Plant Impreza 536,309
1 blind pipe 4 734.67 (5 meter + 5
Work Order Constructio (734.67 x 730)
inch dia etc meter) x 73 nos
No.PAPA/Dir(P&C)/07 n
in Bahawalpur Division
2 “Construction, M/s Mian P/l PVC 1045.15 180 meter 188,127
 Installation and O&M of
Water Filtration Plant
Hydro
(Work Order blind pipe 4 (5 meter + 5 (1045.15 x
Constructio
No.PAPA/Dir(P&C)/08) inch dia etc meter) x 18 nos 180)
n Engineers
in Bahwalpur & Multan
Division”.
“Construction,
Installation and O&M of M/s P/l PVC 1020 meter
Water Filtration Plant Progressive 1,285,200
3 blind pipe 4 1260 (5 meter + 5
Plant (Work Order Internationa (1260 x 1020)
No.PAPA/Dir(P&C)/02) l inch dia etc meter) x 102 nos
in Lahore Division”.
Total 2,009,636

Incorrect measurements resulted in overpayment of Rs 2,009,636 to the

contractors.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 92 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 93 & 94 Overpayment due to allowing and sanction of higher dia of PPRC pipe 6 inch Related to Audit
Govt. of dia on the head of submersible pump of 3 inch dia – Rs 1.378 million South Zone recommends
Punjab HUD for early
& Punjab According to FD’s instruction No. RO(Tech)FD-18-23/2004 dated recovery
Health 21.09.2004, the rate analysis for a non-standardized item shall be approved by SE, from the
Engineering giving specifications of the material/inputs used as per FD’s website. The contractors.
Department. standardized analysis shall be used to work out the rate of items as far as possible.
Govt. of
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
different contractors against the different works “Construction, Installation and
2. Chief O&M of Water Filtration Plants in Bahawalpur & Multan Divisions. Audit observed
Executive
that the Authority in the TS Estimate approved the item “P/fixing PPRC 6 inch dia
Officer (CEO),
Punjab Aab-e- pipe PN20 pressure etc” at the rate Rs 1263 per meter instead of actual admissible
Pak Authority dia of PPRC pipe 63mm/2.5 inch @ Rs 906 per metere. Therefore, incorrect TS
(PAPA). estimate was approved by the Chief Engineer/DG (Project) for the item and
accordingly payment was made to the contractor as under:

Rat To
Name of Exce
S Item Item to be e be Qty Overpayme
Name of Work Contracto ss
R Sanctioned sanctioned pai pai paid nt
r rate
d d
1460
“Construction, Installation P/fixing P/fixing
M/s meter
and O&M of Water PPRC 6 PPRC 2.5
Impreza 126 357 (20 521,220
1 Filtration Plant Work Order inch dia inch dia 906
Constructio 3 meter meter (1460 x 357)
No.PAPA/Dir(P&C)/07 in pipe PN20 pipe PN20
n x 73
Bahawalpur Division pressure etc pressure etc
nos)
2 “Construction, Installation M/s Mian P/fixing P/fixing 126 906 357 360 128,520
and O&M of Water Hydro PPRC 6 PPRC 2.5 3 meter meter (360 x 357)
 Filtration Plant (Work
(20
Order Constructio inch dia inch dia
meter
No.PAPA/Dir(P&C)/08) in n pipe PN20 pipe PN20
x 18
Bahwalpur & Multan Engineers pressure etc pressure etc
nos)
Division”.
2040
“Construction, Installation P/fixing P/fixing
and O&M of Water M/s meter
PPRC 6 PPRC 2.5
Filtration Plant Plant (Work Progressive 126 357 (20 728,280
3 inch dia inch dia 906
Order Internation 3 meter meter (2040 x 357)
No.PAPA/Dir(P&C)/02) in al pipe PN20 pipe PN20
x 102
Lahore Division”. pressure etc pressure etc
nos)
Total 1,378,020

Violation of the contractual obligations resulted in overpayments amounting

to Rs 1,378,020.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 93 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 94 & 95 Non-recovery due to use of substandard bricks ‒ Rs 9.148 million The Audit
Govt. of representative recommen
Punjab HUD As per section 801 and section 1041-8 of Standard Specification for Roads & ds early
brick samples
& Punjab Bridges Construction 197, read with FD’s material rates of item No.07.001, the were randomly recovery
Health standard size of bricks was 9″ x 4-1/2″ x 3″ and the crushing strength was 2000 PSI. taken from the from the
Engineering Further, as per MRS remarks column chapter “Brick Works”, if 2nd and 3rd class stacks and sent to contractor
Department. bricks were used, the item rate would be reduced by 7% and 14%, respectively. s.
the laboratory for
Govt. of
its testing. The
Punjab Lahore. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
results were
different contractors against the different works “Construction, Installation and
2. Chief satisfactory and
O&M of Water Filtration Plants in Bahawalpur & Multan Divisions. The Authority
Executive meet the required
made payment for the items “Pacca brick work cement sand mortar etc.”. Audit criteria of
Officer (CEO),
Punjab Aab-e- observed that as per lab test reports of Laboratories, the strength of the bricks was compressive
Pak Authority below 2000 psi and used bricks size 8.7 x 4.3 x 2.8 but the department did not strength of first-
(PAPA). reduce the rate by 14%. The contractors used the 3 rd class bricks in the work. Hence, class bricks.
recovery be made from the contractors as under: Relevant test
Name of reports are
S Name of Recovery to be Overpaym
R
Name of Work Contracto
item
TS Rate
made
Qty paid
ent attached
r
“Construction,
Installation and O&M of M/s
Pacca brick Rs 945 per cum 1330 cum
Water Filtration Plant Impreza 6758.50
1 work in (6750x14%=945 (18.216 cum 1,256,850
Work Order Constructi per cum
F&P 1:5 etc per cum) x 73 nos)
No.PAPA/Dir(P&C)/07 on
in Bahawalpur Division
Pacca brick
Rs 1022 per cum 1121 cum
work in 7308.45
2 Do- Do- (7300x14%=1022 (15.35 cum x 1,145,662
ground floor per cum
per cum) 73 nos)
1:5 etc
“Construction, M/s Mian Pacca brick 6758.50 Rs 945 per cum 1075 cum
3 1,015,875
Installation and O&M of Hydro work in per cum (6750x14%=945 (18.216 cum
 Water Filtration Plant
(Work Order Constructi
No.PAPA/Dir(P&C)/08) on F&P 1:5 etc per cum) x 59 nos)
in Bahwalpur & Multan Engineers
Division”.
Pacca brick
Rs 1022 per cum 906 cum
work in 7308.45
4 Do- Do- (7300x14%=1022 (15.35 cum x 925,932
ground floor per cum
per cum) 59 nos)
1:5 etc
“Construction,
M/s
Installation and O&M of
Progressiv Pacca brick Rs 945 per cum 2660 cum
Water Filtration Plant 6758.50
5 e work in (6750x14%=945 (18.216 cum 2,513,700
Plant (Work Order per cum
Internation F&P 1:5 etc per cum) x 146 nos)
No.PAPA/Dir(P&C)/02)
al
in Lahore Division”.
Pacca brick
Rs 1022 per cum 2241 cum
work in 7308.45
6 Do- Do- (7300x14%=1022 (15.35 cum x 2,290,302
ground floor per cum
per cum) 146 nos)
1:5 etc
Total 5729934

Violation of the specifications and MRS resulted in non-recoveries

amounting to Rs 9,148,321.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 94 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 95 & 96 Non-recovery due to payment of higher rates than schedule rates ‒ Rs 0.337 The Authority Audit
Govt. of million sanctioned the recommends
Punjab HUD rate as per early
& Punjab As per MRS item no. 5(c) under Chapter-6(Concrete) based on 1 st Bi-Annual MRS item No. recovery
Health 2020 Bahawalpur & Lahore, the rate of item “Cement, concrete, placing PCC ratio 6.6 aii but the from the
Engineering 1:1.5:3 etc” the rate was Rs 9006 per cubic meter. item was contractors.
Department. neither
Govt. of Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to executed nor
Punjab Lahore. different contractors against the various works of “Construction, Installation and paid to the
O&M of Water Filtration Plants Bahawalpur and Lahore Divisions. Audit observed Contractor.
2. Chief that in the TS Estimate the Chief Engineer/DG Projects, Punjab Aab-e-Pak Copy attached.
Executive
Authority, Lahore sanctioned the rate of Rs 10689.60 per cubic meter by taking the
Officer (CEO),
Punjab Aab-e- MRS item no.6 of Chapter-6 RCC instead of applicable MRS item no. 5 of Chapter-
Pak Authority 6 for PCC 1:1.5:3 etc @ Rs 9006 per cubic meter. Hence, excess rate was sanctioned
(PAPA). and made payment to contractors on higher side as under:
S Name of Name of Admissibl Exces Qty Overpay
Name of Work TS Rate
R Contractor item e Rate s Rate paid ment
“Construction, Installation Cement, 110
M/s concrete, 10689.6 cum
and O&M of Water 1683.
1 Impreza placing 0 per 9006 (1.50 185,196
Filtration Plant Work Order
Constructio 6
No.PAPA/Dir(P&C)/07 in PCC ratio cum cum x
n
Bahawalpur Division 1:1.5:3 etc 73 nos)
“Construction, Installation Cement,
and O&M of Water M/s 90 cum
concrete, 10689.6
Filtration Plant Plant (Work Progressive 1683. (1.50
2 placing 0 per 9006 151,524
Order Internationa 6 cum x
PCC ratio cum
No.PAPA/Dir(P&C)/02) in l 60 nos)
Lahore Division”. 1:1.5:3 etc
Total 336720
 Violation of the specifications and MRS resulted in non-recoveries
amounting to Rs 336,720.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 95 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 96 & 97 Overpayment due to allowing extra 7.5% contractor’s profit on electrical items Related to South Audit
Govt. of – Rs 01.404 million Zone recommen
Punjab HUD ds for
& Punjab As per FD’s template notified by Finance Department, there was provision early
Health of 12.5% contractor’s profit and overhead charges on electrical items. recovery
Engineering along with
Department. Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to 12.50%
Govt. of different contractors against the different works “Construction, Installation and markup
Punjab Lahore. O&M of Water Filtration Plants in Bahawalpur, Multan and Lahore Divisions. Audit from the
observed that the Authority in the rate analysis of electrical items i.e. Supplying and contractor.
2. Chief fixing PVC pipe, GI Pipe, Single core electrical cable, tubelight lights fans, exhaust
Executive
fan, Distribution board items allowed 20% contractor’s profit and overhead charges
Officer (CEO),
Punjab Aab-e- instead of only 12.50%. Therefore, excess payment was made to the contractor as
Pak Authority under:
(PAPA). S Name of TS Excess Overpaym
Name of Work Name of item
R Contractor Rate rate ent
electrical items i.e. Supplying
Rs
“Construction, Installation and O&M and fixing PVC pipe, GI Rs 5052
67,359 368,796
of Water Filtration Plant Work Order M/s Impreza Pipe, Single core electrical (67,359
1 per (5052x
No.PAPA/Dir(P&C)/07 in Construction cable, tubelight lights fans, x7.5%=Rs
Bahawalpur Division plant 73nos)
exhaust fan, Distribution 5052)
room
board items
electrical items i.e. Supplying
Rs
“Construction, Installation and O&M M/s Mian and fixing PVC pipe, GI Rs 5052
67,359 298,068
of Water Filtration Plant (Work Hydro Pipe, Single core electrical (67,359
2 per (5052x59
Order No.PAPA/Dir(P&C)/08) in Construction cable, tubelight lights fans, x7.5%=Rs
plant nos)
Bahwalpur & Multan Division”. Engineers exhaust fan, Distribution 5052)
room
board items
electrical items i.e. Supplying
Rs
“Construction, Installation and O&M and fixing PVC pipe, GI Rs 5052
M/s 67,359 737,592
of Water Filtration Plant Plant (Work Pipe, Single core electrical (67,359
3 Progressive per (5052x 146
Order No.PAPA/Dir(P&C)/02) in cable, tubelight lights fans, x7.5%=Rs
International plant nos)
Lahore Division”. exhaust fan, Distribution 5052)
room
board items
 Total 1,404,456

Violation of the contractual obligations resulted in overpayment amounting

to Rs 1,404,456.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 96 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 97 & 98 Non-recovery due to installation of substandard RO plants and Pre-Filtration RO plant Audit
Govt. of Plants – Rs 16.644 million membranes recommend
Punjab HUD duly certified s early
& Punjab As per Technical Specification of RO 2000 liter per hour plant (at Page-121 recovery
by NSF, high
Health of PC-1), pre-filtration control of carbonate, sulphate, fluoride and silica scaling from the
Engineering pressure pumps, contractors.
should of make Europe, USA, Japan only, RO membrane should also be of origin
Department. filter media etc.
USA, West Europe and Japan only. Further, impeller material of bore /submersible
Govt. of have been
pumps, feed pumps (horizontal low-pressure pumps) and high-pressure pumps
Punjab Lahore. imported from
should be made of SS-304 material and horizontal feed low pressure pump should
Japan,
2. Chief be of working pressure 6-bar. Further, sand filtration and carbon filtration and RO
Germany, Sri
Executive housing should be made of material FRP (Fiber-glass Reinforced Plastic) only.
Lanka, Thailand
Officer (CEO),
Punjab Aab-e- Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to etc. further
Pak Authority different contractors against the different works “Construction, Installation and components
(PAPA). O&M of Water Filtration Plants in Bahawalpur, Multan and Lahore Divisions. Audit have been
observed that as per import documents, the contractors imported the carbonate, installed as per
sulphate, fluoride and silica scaling, RO Membrane, filter media sand, sand filters, the
High pressure pumps from locally or China instead of origin Europe, USA and specifications
Japan only. Moreover, the RO Model BW30-4040 as per PC-1 had the ability to being set in the
remove salt rejection 99.50%, whereas the contractors installed the Model RE4040- PC-1/TS.
BLN (CSM) which can salt rejection only 99.20%. Further, the vessel material of According to
sand & carbon filter and RO Housing membrane was PVC (Polyvinyl Chloride). the technical
Further, in the submersible, feed low pressure pump and high pressure pump, the sanction the
impeller was of bronze/ brass metallic impeller. Hence, the contractors supplied the minimum salt
substandard RO and Pre-filtration plants, which resulted in loss to the Authority as rejection must
under: be 99%.
 Contractor
submitted the
S
Name of Work
Name of
Name of item
TS Rate to be Qty Overpayme technical data
R Contractor Rate reduced paid nt
“Construction, Installation and O&M
Rs 96600
of the plant that
of Water Filtration Plant Work Order M/s Impreza RO Filtration Plants 19320
1
No.PAPA/Dir(P&C)/07 in Construction 2000 litre per hour etc 00
(1932000x5%=966
00)
64 6,182,400 was reviewed,
Bahawalpur Division

2 Do- Do-
Pre Filtration Plants 43399 Rs 21699
9 195,291
finalized and
2000 litre per hour etc 3 (433993 x5%)
“Construction, Installation and O&M M/s Mian
Rs 96600
consented by
of Water Filtration Plant (Work Hydro RO Filtration Plants 19320
3
Order No.PAPA/Dir(P&C)/08) in Construction 2000 litre per hour etc 00
(1932000x5%=966
00)
18 1,738,800 the consultants
Bahwalpur & Multan Division”. Engineers
Pre Filtration Plants 43399 Rs 21699 and membranes
4 Do- Do- 102 2,213,298

“Construction, Installation and O&M

2000 litre per hour etc 3 (433993 x5%)
Rs 96600
were installed
M/s RO Filtration Plants 19320
of Water Filtration Plant Plant (Work
5
Order No.PAPA/Dir(P&C)/02) in
Progressive
International
2000 litre per hour etc 00
(1932000x5%=966
00)
42 4,057,200 as per the
Lahore Division”.
6 Do- Do-
Pre Filtration Plants 43399 Rs 21699
104 2,256,696
required criteria
2000 litre per hour etc 3 (433993 x5%)
Total 10461285 with minimum
Violation of PC-1 instruction resulted in non-recovery of Rs 16,643,685 due salt rejection of
to use of sub-standard RO Plants. 99%. Technical
submittal is
attached.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 97 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 98 & 99 Non-recovery due to non-provision of facilities – Rs 2.577 million Related to Audit
Govt. of South Zone recommends
As per Technical Specification (Agreement) Clause No. 2.14.10 (Engineer’s
Punjab HUD early
& Punjab and Employer Site office), the contractor should provide an adequate fully equipped, recovery
Health static, prefabricated or mobile office with sufficient space and washing and sanitary from the
Engineering facilities for the Engineer’s representative and Employer’s representative. These contractors.
Department. offices shall have a minimum space f 25 m2 for each, lockable entrances, openable
Govt. of windows and serviceable finishes. Each office shall be equipped at least but not
Punjab Lahore. limited to Two office Tables, Two office Chairs (Swivel), 4 sundry chairs, 1
computer incl. screen, mouse and keyboard and the current software, A4 Color
2. Chief
Executive Printer, UPS Unit, Air Conditioning, Lights, Telecommunication, also International,
Officer (CEO), Internet, Consumable & Stationary, First Aid supplies, Fire Extinguisher: Hand
Punjab Aab-e- carried, portable, class “A” fire extinguisher for temporary offices and slimier
Pak Authority spaces all in accordance with prevailing building codes.
(PAPA). Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
different contractors against the different works “Construction, Installation and
O&M of Water Filtration Plants in Bahawalpur, Multan and Lahore Divisions. Audit
observed that the contractors did not provide the facilities to employer /Authority i.e
Two Office Tables, two office Chairs (Swivel), 4 sundry chairs, 1 computer incl.
screen, mouse and keyboard and the current software, A4 Color Printer, UPS Unit,
Air Conditioning, Lights etc., however, while making payment to the contractor the
Authority did not affect the recovery on account of non-provision of said facilities.
Moreover, as per agreement executed by the Authority with the consultant M/s
ECSP Pvt. Ltd, the cost was also included in the agreement valuing Rs 2000,000
which was to be borne by the contractor as per agreement ibid. This resulted in non-
recovery as under:
 Sr. No Item of Supplies Prices
1. Site Office (Room) for employer and consultant (100,000 x 20 x 2000,000) 500,000
2. Two office Tables 15,000
3. Two office Chairs (Swivel) 12,000
4. 4 sundry chairs 12,000
5. 1 computer incl. screen, mouse and keyboard and the current software, 50,000
6. A4 Color Printer, 25,000
7. UPS Unit, 45,000
8. Air Conditioning, 150,000
9. Lights, 11,000
10. Telecommunication, also International, 4,000
11. Internet, 5,000
12. Consumable & Stationary, 10,000
13. First Aid supplies, 10,000
14. Fire Extinguisher: Hand carried, portable, class “A” fire extinguisher 10,000
Total 859,000

SR Name of Work Name of Contractor Non-Recovery

“Construction, Installation and O&M of Water Filtration Plant Work Order
1 M/s Impreza Construction 859,000
No.PAPA/Dir(P&C)/07 in Bahawalpur Division
“Construction, Installation and O&M of Water Filtration Plant (Work Order M/s Mian Hydro Construction
2 859,000
No.PAPA/Dir(P&C)/08) in Bahwalpur & Multan Division”. Engineers
“Construction, Installation and O&M of Water Filtration Plant Plant
3 M/s Progressive International 859,000
(Work Order No.PAPA/Dir(P&C)/02) in Lahore Division”.
Total 2577000

Violation of contractual obligations resulted in non-recovery of Rs 2,577,000

due to non-provision of facilities.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 98 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 99 & Non-recovery due to non-inspection by third party inspectors at factory in Related to Audit
Govt. of 100 South Zone recommends
Foreign country– Rs 1.500 million
Punjab HUD early
& Punjab recovery
As per Technical Specification (Agreement) Clause No. 11.3.1 (Factory
Health from the
Engineering Test), all testing shall either be witnessed by a team comprising the Employer and contractors.
Department. Engineer, or a neutral third-party inspector who shall be well versed with the testing
Govt. of procedure. The Bidder / contractor shall submit for the Employer’s approval three
Punjab Lahore. internationally acclaimed inspectors. Bidders shall quote the rates of such third-party
inspection teams / companies in their Bids.
2. Chief
Executive
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to
Officer (CEO),
Punjab Aab-e- different contractors against the different works “Construction, Installation and
Pak Authority O&M of Water Filtration Plants in Bahawalpur, Multan and Lahore Divisions. Audit
(PAPA). observed that RO plants / Pre-Filtration plants were required to be import from
Europe, USA and Japan only and factory tests / pre-inspection was required to be
carried out at Manufacturing Unit at the expenses of contractor. However, as per
agreement the Pre-inspection was not carried out, therefore, recovery be made from
contractors as under:
Amount of
Sr. Name of
Name of Work Pre-
No Contractor
inspection
 “Construction, Installation and O&M of Water
M/s Impreza
1 Filtration Plant Work Order No.PAPA/Dir(P&C)/07 in 500,000
Construction
Bahawalpur Division

“Construction, Installation and O&M of Water M/s Mian Hydro

2 Filtration Plant (Work Order No.PAPA/Dir(P&C)/08) Construction 500,000
in Bahwalpur & Multan Division”. Engineers

“Construction, Installation and O&M of Water

M/s Progressive
3 Filtration Plant Plant (Work Order 500,000
International
No.PAPA/Dir(P&C)/02) in Lahore Division”.

Total 1500000

Violation of contractual obligations resulted in non-recovery of Rs 1,500,000

due to non-inspection by third party inspectors at factory in Foreign country.

Director Finance
Punjab Aab-e-Pak Authority
WORKING PAPER OF PRINTED DRAFT PARA NO. 110 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 111 & Double-payment on account of cost of Submersible Pump – Rs 15.600 million The cost of the Audit
Govt. of 112 pump installed in recommend
Punjab HUD As per PC-I read with Technical Specifications No. 17.11 to 17.13 (XII) part the bore is not s early
& Punjab of the agreement, the submersible pump, feed pump and high pressure pump were included in the recovery
Health already included in the composite rate of Rs 1,932,000. composite rate of from the
Engineering the RO plant. It contractors.
Department. Director Project, Punjab Aab-e-Pak Authority, Lahore got approved the rate includes only
Govt. of of item separately for submersible pump @ Rs 40,000 each whereas, the cost of the high pressure and
Punjab Lahore. same was also included in the composite rate @ Rs 1,932,000 of RO Plant 2000 raw water pumps.
litter per hour. Therefore, due to double inclusion of rate resulted in overpayment to (Schematic
2. Chief the contractors as under: Drawing is
Executive attached). Hence
Officer (CEO), Sr.
Name of
Rate
Un
Payment
of no duplication
No Name of Work Name of items Approve Overpayment
Punjab Aab-e- .
Contractor
d
it Submersi
ble Pump and overpayment
Pak Authority “Construction, Installation and O&M of Water
M/s KSB Pumps
RO Filtration
Plants 2000
is made,
1 Filtration Plant Work Order 1932000 94 40,000 3,760,000
(PAPA). No.PAPA/Dir(P&C)/03 in Faisalabad Division”.
Company litre per hour
etc
therefore, Para
“Construction, Installation and O&M of Water
Filtration Plant Work Order M/s Idrees Govt.
RO Filtration
Plants 2000
may please be
2 1932000 61 40,000 2,440,000
No.PAPA/Dir(P&C)/05 in Sahiwal Division dated
19.04.21”.
Contractor litre per hour
etc
settled
“Construction, Installation and O&M of Water RO Filtration
Filtration Plant Work Order M/s Rashid Plants 2000
3 1932000 19 40,000 760,000
No.PAPA/Dir(P&C)/11 in DG Khan & Rajanpur Ashraf & Bro. litre per hour
Division etc
RO Filtration
“Construction, Installation and O&M of Water
M/s Impreza Plants 2000
4 Filtration Plant Work Order 1932000 39 40,000 1,560,000
Construction litre per hour
No.PAPA/Dir(P&C)/04 in DG Khan Division
etc
RO Filtration
work “Construction, Installation and O&M of
M/s KSB Pumps Plants 2000
5 Water Filtration Plant (Work Order 1932000 53 40,000 2,120,000
Company litre per hour
No.PAPA/Dir(P&C)/06) in Multan Division”.
etc
RO Filtration
work “Construction, Installation and O&M of
M/s Impreza Plants 2000
6 Water Filtration Plant (Work Order 1932000 64 40,000 2,560,000
Construction litre per hour
No.PAPA/Dir(P&C)/07) in Bahwalpur Division”.
etc
7 work “Construction, Installation and O&M of M/s Mian Hydro RO Filtration 1932000 18 40,000 720,000
 Water Filtration Plant (Work Order Plants 2000
Construction
No.PAPA/Dir(P&C)/08) in Bahwalpur & Multan litre per hour
Engineers
Division”. etc
RO Filtration
“Construction, Installation and O&M of Water
M/s Progressive Plants 2000
8 Filtration Plant Plant (Work Order 1932000 42 40,000 1,680,000
International litre per hour
No.PAPA/Dir(P&C)/02) in Lahore Division”.
etc
  Total           15,600,000

Weak technical control resulted in loss to Govt. of Rs 15,600,000 due to

Twice inclusion of rate of Submersible Pump.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 111 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)
 PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 112 & Overpayment due to allowing Higher MRS rate of Lahore District than Kasur As per the Audit
Govt. of 113
– Rs 06.318 million feasibility and recommends
Punjab HUD preliminary early recovery
& Punjab According to the instructions issued by the Finance Department, vide No.
design report from the
Health RO(Tech)FD-18-23/2004, dated 21.09.2004, rate analysis for the non-standardized
Engineering of the contractor.
items shall be prepared by the Executive Engineer, clearly giving the specifications
Department. consultant, 146
of the material used and approved by the competent authority not below the rank of
Govt. of No. sites have
Superintending Engineer on the basis of input rate and MRS of relevant quarter
Punjab Lahore. been
placed at website of Finance Department.
shortlisted for
2. Chief the installation
Executive
Director Project, Punjab Aab-e-Pak Authority, Lahore made payment to of WFPs. The
Officer (CEO),
Punjab Aab-e- contractor M/s M/s Progressive International through 4th unning bill against the work project sites
Pak Authority “Construction, Installation and O&M of Water Filtration Plant (Work Order were scattered
(PAPA). No.PAPA/Dir(P&C)/02) in Lahore Division”. The contract was awarded for Rs in the Districts
347,936,452 to the contractor. Audit observed that the Authority got approved the Lahore Kasur
MRS items by applying MRS rates of District Lahore instead of actual MRS of and Nankana.
District Kasur. The rates of Lahore District were higher than Kasur therefore, excess Some of the
payment was made to the contractor as under: WFPs need to
Rate Exce
be installed in
Sr. Rate
No
Name of items
paid
Admissib ss Units Qty T. Qty Overpayment the villages
le rate
1 Excavation in Foundation 271.5 264 7.5 146 11.30 1649.8 12,374 situated at the
Earthfilling in ordinary 272.4
2
soil
526.45 254
5
146 29.51 4308.46 1,173,840 overlapping of
3
Dry rammed brick 40 mm
1639.7 1547 92.7 146 5.257 767.522 71,149 the boundaries
to 50 mm gauge
4 RCC 1:2:4 13451 13287 164 146 4.716 688.536 112,920 of the
 5 Fabrication of Mild Steel 151.47 151.22 0.25 146
424.4 61963.8 mentioned
15,491
1 6
6 Pacca brick F & P 1:5 7606.2 6684 922.2 146
18.21 2659.53
2,452,624
districts so the
6 6
Pacca brick ground floor 937.1 estimation has
7 8156.15 7219 146 15.35 2241.1 2,100,247
1:5 5 been carried
Making & fixing steel
8 12620.75 12533 87.75 146 4.84 706.64 62,008
grated 1/16" 100 mm out according
9 P/F steel window 5586.05 5537 49.05 146 1.25 182.5 8,952
10 PCC including placing etc. 7966.55 7879 87.55 146 3.74 546.04 47,806 to the rates of
11 Tufftile 1005 996 9 146 6.174 901.404 8,113 district Lahore
Boring 6 " dia upto 100
12 958.1 928 30.1 60 30 1800 54,180
feet as to prepare
13 Boring 6 " dia upto 200 ft 1492.25 1446 46.25 60 30 1800 83,250
14 PCC 1:2:4 7966.55 7879 87.55 60 0.5 30 2,627 the BOQ of
15 P/L RCC 1:1/.5:3 10689.6 9690 999.6 60 1.5 90 89,964 146 water
16 P/I PVS 4" 100 mm 608.5 605 3.5 60 10 600 2,100
17 P/I PVS 6" 100 mm 1385.25 1379 6.25 60 55 3300 20,625 filtration plants
Total 379625
on the rates of
other districts
Violation of the FD’s instruction resulted in overpayments amounting to Rs is not
6,318,270. pertinent.
Therefore,
MRS rates of
District Lahore
has been
adopted as in
general to
prepare the
rough cost
estimate of the
project, hence,
no access
payment was
made to the
 Contractor.
Para may
please be
settled.

Director Finance
Punjab Aab-e-Pak Authority

WORKING PAPER OF PRINTED DRAFT PARA NO. 119 FOR THE YEASR 2022-23 PUNJAB AAB-E-PAK AUTHORITY (PAPA)

PARA
HEAD OF & REPLY OF AUDIT
AUDIT OBSERVATION
DEPARTMENT PAGE DEPARTMENT REMARKS
NO.
Secretary to 120 & Irregular expenditure from the head of contingency – Rs 0.540 million Related to Audit
Govt. of 121 Finance. recommends
Punjab HUD As per Sr. No. 2 (under Note 2) & Sr. 13 of Delegation of Financial Powers regularizatio
& Punjab and Rules 2009/2014 (Powers common to all departments) (contingency) read with n and
Health adjustment of
Rule 8.3 of PFR vol-1, no expenditure which is novel or doubtful in character may
Engineering Advance.
Department. be incurred from contingencies except with the prior sanction of Government. (i)The
Govt. of expenditure could be charged or be incurred on purchase of stationery, surveying
Punjab Lahore. equipment’s, testing instruments, computers, printers, plotters and scientific drawing
instruments required for the preparation of estimates, furniture and equipment for
2. Chief site office, etc. for the same work/estimates. (ii) Diversion would not be for the
Executive purchase/Repair of vehicles or for the construction of residential or office
Officer (CEO),
accommodation other than the site office for the same work/project.
Punjab Aab-e-
Pak Authority
(PAPA). Director Project, Punjab Aab-e-Pak Authority, Lahore made payment on
account of Fuel and made advance payment to Directors field staff. Audit observed
that the authority paid Rs 540,000 out of head of contingency of the project and
amount was still not adjusted. The detail is as under:

Sr.
Payee Name Cheque No. Date Amount
No
08.09.202
1 Director P & QC SZ 41141109 180,000
1
08.09.202
2 Director P & QC CZ 41141110 180,000
1
08.09.202
3 Director P & QC NZ 41141111 180,000
1
Total Expenditure 540,000
Violation of the FD’s instructions resulted in irregular expenditures
amounting to Rs 540,000.
 Director Finance
Punjab Aab-e-Pak Authority