CAG flags INR 288 crore extra spending in Nagaland’s Jal Jeevan Mission, alongside financial lapses across government departments.
DIMAPUR — The Comptroller and Auditor General of India (CAG) has flagged an avoidable expenditure of INR 288.12 crore in the implementation of Jal Jeevan Mission (JJM) in Nagaland, along with a series of financial and procedural lapses across government departments.
The findings are part of the CAG’s report on the Social, Economic, General and Revenue Sectors for the year ended March 31, 2024, which was tabled in the Nagaland Legislative Assembly on September 3.
The report includes performance audits, an Information Technology audit and compliance audit findings involving various departments.
In its JJM audit, the CAG found that materials had been procured from a single supplier without inviting tenders. This resulted in an avoidable extra expenditure of INR 288.12 crore and a corresponding financial benefit to the supplier.
The audit also raised questions over the delivery of household tap connections. Against a target of 16,288 Functional Household Tap Connections (FHTCs) in 34 test-checked villages, only 8,251 were provided. This left 5,851 households without the intended benefit, while INR 21.57 crore shown as expenditure for these households was found to be fictitious as the services had not actually been provided.
Water-quality monitoring was another area of concern. The State Laboratory had only 21 of the 43 instruments required, while the four district laboratories examined by the auditors had just eight of the required 35. No laboratories had been set up at the block level.
MGNREGS irregularities
The audit of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) found discrepancies in the execution of works, including 10 projects costing INR 2.87 crore that were shown as completed but were not found physically at the reported locations.
Short execution was also detected in 51 projects involving INR 8.69 crore, indicating possible misappropriation to that extent. Further, 24 government employees were enrolled as unskilled workers under MGNREGS, with 19 of them receiving INR 6.04 lakh in wages.
The audit also found a 59% shortfall in social audits between 2019 and 2024. It noted that the state and District Quality Monitoring Cells had carried out no inspections to verify the quality or authenticity of the works.
INR 6.14 cr scheme funds used for private school
In another significant finding, the CAG said INR 6.14 crore sanctioned for construction of boys’ and girls’ hostels under the Pradhan Mantri Jan Vikas Karyakram was unauthorisedly used to construct buildings on the premises of a private school at Vihokhu.
The two hostel buildings were constructed within the compound of Vitoyi Memorial School, which is owned by the school proprietor. Records showed that the school had 48 students in 2023 and 64 in 2024, with no hostel facility recorded.
INR 88 lakh in fraudulent, excess drawals
The report also flagged fraudulent, double and excess drawals totalling INR 87.73 lakh by 13 drawing and disbursing officers from nine departments.
According to the audit, the money was misappropriated through inflated net totals in pay bills, double drawals and fraudulent claims for pay and allowances, including arrears. Of the amount identified, INR 24 lakh was still pending recovery.
Other financial lapses
The Health and Family Welfare department diverted INR 3.85 crore from an infrastructure fund to procure medicines, hospital linens and nursing sundries, the CAG said. Full payment was released despite short supply or rejection of items worth INR 88 lakh.
In Home department, procurement of commercial LPG cylinders and refills without following the tendering process resulted in excess expenditure of INR 3.46 crore, according to the report.
The audit also found that INR 17.56 lakh meant for land acquisition for a Sub-Jail at Pfutsero was misappropriated by the deputy commissioner of Phek. This followed the release of INR 26 lakh to the landowner without execution of a sale deed.
Separately, an INR 13.26-crore Working Women Hostel in Kohima was constructed on privately owned land, while a INR 2.87-crore Botanical Garden-cum-Recreational Park at Jalukie was developed on private land and remained idle for two years.
The CAG has called for stronger procurement controls, recovery of excess or misappropriated funds, fixing of responsibility on officials and steps to ensure that government-funded assets are used for their intended purposes.