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An Analysis of the Utilization of Asian Development Bank’s Loans for Books Procurement: A Case Study of Loan Provided to Technical Education Project, NWFP (1996-2004)

Khattak, Sharafatullah and Hussain, Anwar Hussain (2009): An Analysis of the Utilization of Asian Development Bank’s Loans for Books Procurement: A Case Study of Loan Provided to Technical Education Project, NWFP (1996-2004). Published in: Sarhad Journal of Agriculture , Vol. 25, No. 2 (2009): pp. 355-367.

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Abstract

This study has been conducted in 2007 to show how the loans provided by Asian Development Bank (ADB) are utilized in NWFP. The analysis has been confined to the loan named 1373 PAK(SF) disbursed for books procurement to different technical institutions of the province under Technical Education Project (TEP). As the project was assisted by the ADB from 1996-2004, so for the analysis, secondary data was used. Facts and figures were documented from the official documents of the project and Audit Reports. The study revealed that a total loss to the government ex-chequer was found Rs.5869704.00 in Rs.7956132.00. Net total value of books purchased from the local firm was Rs.6113887.00 instead of Rs.7956132.00. On the average Rs.4027459.00 out of Rs.79883667.00 was spent on Undemanded/non-essential/un-useable books. Offer of 5% donation was not entertained. That is, the firm did not provide books worth Rs.399418.00 to different institutions. Rs.362946.00 as price differences was not taken into account. Total cost of books and income tax were not found in the required ratio. 44.43% of the total cost of books was spent on buying 2.8% of the total number of books from the firm at an average rate of Rs.8312.48 per book. 55.54% of the total cost of books was spent on buying 6.9% of total number of books at an average rate of Rs.4201.27 per book. Deduction of Rs.25462.30 was noted in the supplier record but could not be traced in the relevant provided record. In short, the loans were not properly utilized as should be. Based on findings of the study, it is recommended that Checks should be made on the employees’ selection and performance. Arrangements for availing 5% donation offer on total purchase of books should be made on emergency basis and ways and means should be devised to stop such practices in future. Un-demanded/non-essential/un-usable books should be returned to the supplier. Research and development cells of each department in the province may be given the chance to work under the ministry of Higher Education of Science and Technology. Project managers, officers of the Planning and Development Department, and ADB officers should properly check quarterly progress reports of projects and they should be made responsible for any mishap.

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