The Auditor General of Pakistan (AGP) in its audit report 2013-14 has detected several irregularities, embezzlement and misappropriations in funds of Civil Aviation Authority (CAA).
According to the audit, the CAA failed to recover Rs 16 billion from 294 operators/airlines under the aeronautical charges for the year ended on June 30, 2014. The audit said due to no mechanism in place, the outstanding amount accumulated to Rs 25.8 billion which might become irrecoverable with the passage of time.
The CCA replied that the recovery of Rs 22 billion related to PIA been been affected and efforts were being made to recover the outstanding amount.
Similarly, the aviation division renewed licences of regular public transport, charter air transport services and aerial work licences of PIA and Shaheen Air for year 2014 despite a huge outstanding amount of Rs 23.92 billion against them.
According to the audit, the Authority appointed an officer as project director for executing construction work on the New Islamabad International Airport in violation of merit and the said director allowed payments of Rs 1578.28 million to different contractors.
The audit also detected that the aviation division failed to refund Rs 1,000 million to the CAA within 90 days after the CAA released the amount for the security infrastructure of airport security and un-gradation of security infrastructure.
Similarly, the CAA awarded a consultancy contract for Rs 168 million against the guidelines and instructions of Pakistan Engineering Council as well as FIDIC.
The audit has detected non-recovery of space charges on revised rates to the tune of Rs 60.29 million.
The CAA leased out land measuring 4,840 sq yd for construction of petrol pump at the Allama Iqbal International Airport for Rs87.12 million but it has failed to recover Rs28.07 million.
The audit also detected an irregularity of overpayment of Rs 20.48 million in the Gwadar International Airport Project. The audit has also found irregularities of Rs 8.10 million in construction of Thar Airport.
The CAA also failed to recover Rs 4.70 from a contractor, who abandoned the renovation work of offices for Airport Services Wing at HQ CAA, Karachi. The audit has detected an irregularity of Rs54.04 million in the appointment of engineer, advisor, project director and technical staff on a contract to execute work on the Islamabad International Airport.
