Massive irregularities detect in PIMS’s HVAC project

By Aamir Lashari
ISLAMABAD: The Federal Audit has unearthed large scale irregularities in the Heating Ventilation and Air-condition (HVAC) system up gradation project being executed by Pakistan Public Works Department (PWD).
The contract to complete the project was awarded to M/s DWP Technologies for Rs.864.538 million on 16.09.2019. It is also observed that Pak PWD before revision of PC-I awarded the tender to the contractor at a cost of Rs.864.538 million which is beyond the scope of original approved PC-I total costing to Rs.725 million.
“The total cost of the project was Rs.725 million, completion period was twenty four (24) months i.e. 16.08.2020. Audit observed that the project PC-I was revised for cost ofRs.1090.650 million. An increase of Rs 365.65 million was noticed in the original cost of the project i.e. Rs 725 million. This increase in the cost of the project burdened the national exchequer by Rs.365.65 million”, audit report pointed out.
Audit observed that Planning and Development (P&D) Cell of Federal Medical Teaching Institute (FMTI), Islamabad in its letter No F.65- l/2020(HA YC)/PIMS dated 21.08.2020 stated that there was no expert in Pak PWD as well as in Federal Medical Teaching Institute (FMTI), Islamabad to oversee the execution of HVAC project as an expert. P&D advised to request the Ministry of NHS, R&C for nomination of an expert from Pakistan Engineering Council (PEC) or IDAP (Govt. of Punjab) to review the revised PC-I of the project. The same PC-I was revised by DDWP in its meeting held on 07.12.2021 for Rs.1090.650 million. Expert opinion/third party evaluation was not solicited from PEC or IDAP {Govt. of Punjab) for revision of the PC
In the original PC-I it was stated that the capital cost of project was modified from Rs 663.30 million to Rs 725 million on the recommendation of Pak PWD. Audit was of the view that P &D Cell confessed that the execution agency (PWD) has no capacity to handle such project. Audit recommends to inquire the matter to fix the responsibility.
On the other side, in the original PC-I it was also stated that there will be no role of Pak PWD in the execution of the project and it will be executed through hiring of a qualified well experienced engineering HVAC consultant as per PPRA rules. Audit observed that the M/s International Consultants was hired for designing of HV AC plant room and allied works and preparation of tender documents etc on 12.02.2019 for Rs 12.57 million and contraction of the project to M/s DWP Technologies (Pvt.) Ltd for Rs.864.538 million on 16.09.20 I 9 by Pak PWD. Audit is of the view that award of separate contracts for consultancy and construction of the project was violation of the PC-I.
Audit observed a time overrun of 2 years in the execution of the project was noticed till 30.06.2022 and the project is still incomplete. Guidelines for Project Management issued by Planning Commission for execution of the PSDP project were not followed. Technical Evaluation and Supervisory Committee for timely completion of the project was not formulated. Monitoring and evaluation of the project was not carried out which resulted into extension and revision of project cost. Audit is of the view that non-completion of the project within the stipulated time period may result of ill planning and mis-management of financial and human resources.
Due to non-completion of the project within time the desired objectives mentioned in the PC-I could not be achieved which is serious negligence and incompetency on the part of the project management. Audit recommends to investigate the matter to fix the responsibility.
Audit is of the view the time and again revision in the project life and cost shows the management inability to execute developmental projects timely. Audit recommends to enhance the human capacity of the project authorities to ensure timely completion of the project.