MARDAN: An audit report has uncovered serious financial irregularities in Mardan district, revealing that authorities failed to impose penalties worth Rs51.7 million on contractors for delays in completing development schemes.
According to audit findings for the financial year 2023-24, multiple development projects awarded by TMA Mardan, TMA Takhatbhai, and TMA Katlang with a total estimated cost of Rs517.275 million were not completed within the stipulated time.
Under Clause 2 of the standard contract agreement, authorities are empowered to impose penalties of up to 10 per cent of the total estimated cost in case of delays. However, no penalties were enforced.
The audit report stated that Rs51.727 million should have been recovered from contractors, including Rs47.127 million from TMA Mardan, Rs1.6 million from TMA Takhatbhai, and Rs3 million from TMA Katlang.
The failure to impose penalties has been termed a violation of rules, resulting in significant financial loss to the government.The issue was reportedly raised with officials in November 2024, prior to the finalisation of the audit report. However, the audit further revealed that despite repeated reminders in December 2024, the District Accounts Committee (DAC) meeting could not be convened to address the matter.
Audit authorities have recommended immediate measures to ensure the timely completion of development schemes and the recovery of penalties from the contractors concerned.Notably, a similar issue had been highlighted in the previous audit report for 2023-24 involving Rs11 million, raising concerns over the recurrence of such irregularities.
