Auditors unveil irregularities in KPT affairs

Federal auditors have found what they observed “unjustifiable” irregularities in administrative and financial affairs of the Karachi Port Trust (KPT) while examining the port operator’s past five years records, Profit has reliably learnt.
Auditors, appointed by federal government to audit KPT’s financial accounts under Section 68 of KPT Act 1886 for a period ranging from 2007 to 2011, have grilled the country’s largest port operator on expenditure of over Rs8.24 million on account of “irregular” pay and allowances to KPT officers of different designations.
Rear Admiral Azhar Hayat, general manager operations, Bashir Ahmed, manager legal affairs, Captain Izhar Baig, dredging engineer, Rashid Yahya Usmani, manager marine pollution control department, Lt Cdr (rtd) M.A Rehman, deputy manager enquiry cell, Faisal Masood, Atif Iftikhar Naik and Rashid Ikram Baig are the KPT officials who, the auditors believed, got either unauthorised pay and allowances or were appointed or promoted unduly.
Auditors made the KPT accountable for absorbing the naval officers on deputation without seeking approval of ministry of ports and shipping and a no-objection certificate (NOC) from their parent department, Pakistan Navy.
Rear Admiral Azhar Hayat, GM operations, was one of the officers in uniform who, the auditors observed, were absorbed by KPT without advertising the post as a violation of relevant rules. According to auditors, the official had received over Rs0.282 million during his “unauthorized stay” at KPT after expiry of his deputation. Auditors also named Captain Izhar Baig as a naval officer who was appointed by KPT as a dredging engineer at “TSHD ABUL” without an NOC from naval headquarters.
KPT in its reply, however, contradicted auditors’ claim regarding Hayat’s absorption and referred to Para 2 (b) of JSI-4/85 and its board resolution number 629.
The port operator also came under fire for the reappointment of its retired officials and the “irregular” extension of the contractual ones sans the approval of federal government.
Also, auditors observed that KPT had paid “unauthorized” allowances worth Rs201,000 to armed forces personnel. KPT was also blasted for permanently absorbing Faisal Masood, Atif Iftikhar Naik and Rashid Ikram Baig “without open merit and without advertisement of the posts”.
Further, according to auditors, KPT had promoted Rashid Yahya Usmani, manager Marine Pollution Control Department, to BPS-20 in violation of government order. “The government disapproved the case however the officer was promoted by transfer of post,” they claimed.
Other irregularities, federal auditors said KPT had committed during the last five years include violation regional quota, the grant of “unjustified” monthly special house rent allowance of Rs1000 in addition to hiring facility allowances to employees/officers, irregular appointments due to incomplete specification of terms and conditions in advertisement, appointment of Resident Medical Officer without conducting a written test, payment of advance increments, etc.
In response to auditors’ observations, KPT contends that the trust was a self accounting entity spending out of its own revenues and not from that of the government funds.
“The expenditure mentioned in subject cases are in accordance with rules and regulations and duly approved by the ministry of ports and shipping,” KPT said.