CAG detects anomalies in various Nagaland government departments

KOHIMA — The report of the Comptroller and Auditor General (CAG) of India for the year ended March 31, 2022, in respect of Nagaland state, has revealed that it detected anomalies and irregularities in various departments.

Kohima Smart City Mission

The CAG performance audit of Kohima Smart City Mission under the Municipal Affairs department, covering the period from 2016-17 to 2020-21, revealed several deficiencies in the implementation of the mission.

Out of 61 prioritised projects under Kohima Smart City Development, only 28 DPRS were completed. Only eight projects were completed out of the completed DPRS (October 2021). The delay in the implementation of projects is attributable to the delay in the release of funds by the funding agencies and the injudicious utilisation of available resources by the management, the report stated.

CAG observed that the Kohima Smart City Development Limited (KSCDL) did not prioritise the core infrastructure elements, or prepare any feasibility report and revenue model in violation of the guiding principles. Non-preparation of feasibility and revenue model has resulted in failure to attract PPP and implementation of projects through convergence.

Improper planning in project implementation beyond the scope and objective of the Smart City Mission resulted in an infructuous expenditure of INR 70.75 lakh on the procurement of water ATM and water tanker. Non-assessment of the feasibility of the project before its implementation resulted in an infructuous expenditure of INR 85.57 lakh on the Construction of Multi Utility Duct, it stated.

The State Government did not release its share of funding, and Gol did not release the subsequent instalments of INR 300 crore.

DoNER-funded schemes under NLCPR,  NESIDS

A subject specific compliance audit (SSCA) of ‘Review of Ministry of Development of North Eastern Region funded schemes under non-lapsable central pool of resources and North East Special Infrastructure Development schemes in Nagaland’ was carried out covering the projects sanctioned during 2016-17 to 2020-21.

The SSCA revealed that the estimates in the DPR were unrealistic indicating lack of proper planning, survey and economic appraisal before preparing the DPRs. DPR and concept notes were prepared without field visits to assess the actual requirements and without analysing the actual BoQ required for the project, the report stated.

“Delay in completion of transmission line resulted in idle expenditure of sub-station constructed at INR 68.58 crore. The state government irregularly deducted departmental charges of INR 2.85 crore.

“Except for one project, no inspection was conducted on the projects funded under NESIDS.”

Deficiencies in creation of capital assets

An SSCA on ‘Funds released under Special Assistance-Creation of Capital Assets’ was carried out covering the Special Assistance (SA) funds sanctioned by the Gol from 2018-19 to 2020-21.

The SSCA revealed several deficiencies in the creation of capital assets out of the SA funds released. The audit examined six projects in six departments out of 14 projects in 14 departments. The total consolidated amount released by GoN against the earmarked projects in the six selected departments was INR 960.65 crore since the inception of the projects.

Nine out of 14 projects remained incomplete but were shown as complete as per the progress report. Non/short release of funds (INR 57.38 crore out of INR 76.72 crore) to seven out of 14 departments by the state government for which funds were allocated to complete the earmarked projects.

Funds of INR 38.58 crore were diverted to meet the liabilities of the departments on unapproved projects other than the earmarked projects. An amount of INR 5.29 crore out of INR 70.01 crore was utilised to meet revenue expenditure instead of capital expenditure. The release of the fund to two implementing departments was delayed by 7 to 11 months after the financial year for which it was sanctioned.

Idle investment by Municipal Affairs dept.

As the State Government failed to execute fresh MoU for establishment of modern abattoir even after a lapse of more than one year from the date of cancellation of MoU, the facility constructed at a cost of INR 17.15 crore is lying idle for the last four years.

Unfruitful expenditure by Urban Development dept.

The proposed road of 18.85 Km to connect Peren District Road (Ngwalwa) and National Highway-39 (Chümoukedima) remained incomplete even after a lapse of more than 10 years leading to unfruitful expenditure of INR 9.21 crore and non-fulfilment of the intended objective.

Diversion of superior kerosene oil by F&CS dept.

Superior Kerosene Oil worth INR 19.56 crore (6,113.19 KL) meant for beneficiaries of Public Distribution System was diverted to non-beneficiaries.

Excess payment by Agriculture dept.

The Agriculture department did not follow the financial assistance norms of INR 1.25 lakh per beneficiary leading to deprival of benefits to 801 beneficiaries. Further, INR 3.41 crore was incurred on five items which were not approved by GoI. Moreover, INR 7.20 crore was paid to the supplier in excess without actual receipt of full items.

Fraudulent drawal under the Finance dept.

Failure of the drawing and disbursing officers and treasury officers to exercise prescribed checks resulted in fraudulent/double/excess drawals of INR 2.26 crore.

Unauthorised diversion of funds in PWD

Failure of the treasury officer in exercising the prescribed checks while passing work charged salary cheques/bills facilitated unauthorised diversion of funds of INR 83.50 lakh from the salary head by the mechanical engineer, Public Works Department, Mechanical Division-I, Kohima.

Unauthorised withdrawal in Home department

Failure of the treasury officers in exercising the prescribed checks while passing the additional ration allowance bills presented by three drawing and disbursing officers of the Village Guards Organisation resulted in unauthorized withdrawal of INR 2.40 crore.

Loss of revenue, tax evasion in Finance (taxation) dept.

Non-assessment of returns of 11 dealers within the stipulated time limit by the assessing authority led to loss of tax revenue of INR 15.60 crore under NVAT Rules as the assessment had now become time barred.

Allowance of concessional rate of tax on inter-state sales turnover not supported by statutory ‘C’ forms and acceptance of fake ‘C’ form by the superintendent of Taxes resulted in evasion of tax of INR1.14 crore under Central Sales Tax Rules on which an interest of INR 1.40 crore was also leviable.

Failure to undertake reconciliation of challans submitted by two dealers with treasury receipts in government account resulted in loss of government revenue of INR 1.36 crore due to forged challans. Besides, the two dealers defaulted in payment of tax of INR 3.85 crore under Nagaland (Sales of Petroleum and Petroleum Products including Motor Spirit and Lubricants) Taxation Rules and were also liable to pay interest of INR 2.26 crore.

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