Nagaland: CAG detects 35 cases of fund misappropriation, losses, thefts

Kohima: The Comptroller and Auditor General of India has detected 35 cases of misappropriation, losses, and thefts amounting to INR 371.54 crore in more than 16 state government departments.

The state’s finance audit report by the CAG for the year ended March 31, 2022, a copy of which was tabled during the first session of the 14th Nagaland Legislative Assembly, stated that out of the 35 cases, four involving INR 25.76 crore were pending in the court of law.

Also read: CAG detects anomalies in various Nagaland government departments

Among the departments involved, School Education tops the chart with two cases involving INR 82.80 crore, followed by Disaster Management also with two cases amounting to INR 74.04 crore; public Works Department (R&B and Mechanical) with four cases involving INR 58.23 crore; Taxes with four cases – INR 33.23 crore; Water Resources, one case – INR 28.60 crore; Planning and Coordination, one case – INR 20.23 crore; Health and Family Welfare, four cases – INR 13.70 crore; Planning and Coordination, one case – INR 20.23 crore; Health and Family Welfare, four cases – INR 13.70 crore; and DC Dimapur, one case – INR 10.63 crore.

The report also stated that Tourism department has a case amounting to INR 5 crore; Public Health Engineering, one – INR 2.67 crore; Soil and Water Conservation, one – INR 1.81 crore; Industries and Commerce, one case – INR 1.54 crore; Land Records and Survey, one case – INR 1.24 crore; Municipal Affairs had one – INR 1.11 crore; Rural Development, two – INR 0.88 crore; Forest department got one – INR 0.54 crore; other various departments, seven cases – INR 35.29 crore.

As per the information furnished by the Nagaland Lokayukta, Directorate Investigation, Nagaland, there were 13 cases of loss to the government due to theft, misappropriations, loss of government materials etc., involving INR 176.32 crore out of which an amount of INR 7.29 crore had been recovered.

UCs worth INR 316.34 crore due for submission

During the year 2021-22, 61 grants involving INR 81.80 crore were provided to 16 departments for which UCs utilisation certificates (UCs) are due for submission during the year 2022-23, according to CAG report.

As on March 2022, there were 149 UCs worth INR 316.34 crore, which were due for submission for periods pertaining up to 2020-21, it added.

‘Pending UCs violates prescribed financial rules and directives, and reflects poor monitoring mechanism of the state government. Moreover, high pendency of UCs is fraught with risk of misappropriation of funds. The state would also lose out on Central funds for want of UCs not submitted,’ it added.

Abstract Contingent Bills

The CAG also stated that there were 335 Abstract Contingent (AC) bills involving INR 532.83 crore pending for adjustment by submission of Detailed Countersigned Contingent (DCC) bills, as of March 2022.

Out of these, 28 AC bills amounting to INR 22.83 crore pertained to the year 2021-22, while 307 AC bills amounting to INR 510 crore drawn up to 2020-21 were also outstanding as on March 31, 2022. The non-adjustment of AC bills is fraught with the risk of misappropriation and therefore, requires close monitoring by the respective DDOs for ensuring submission of DCC bills, it stated

In regard to department-wise pending AC bills for the years up to 2021-22, Civil Police leads with INR 317.33 crore, followed by Home Department – INR 90.64 crore; Youth Resources and Sports – INR 33.99 crore; Tourism – INR 24.86 crore; and Department of Under Developed Areas – INR 14 crore.

During the period, expenditure of INR 21.415.60 crore under 47 revenue and capital major heads, constituting about 10.32% of total expenditure of INR 13.713.54 crore, was booked under minor head 800-other expenditure.

Similarly, receipts of 283.98 crore under 40 revenue major heads, constituting about 2.31% of the total revenue receipts of 13,451.14 crore were booked under minor heads 800-other receipts under concerned major heads.

Meanwhile, a total of 14,437 workers were registered with the Nagaland Building and Other Construction Workers’ Welfare Board (NBOCWWB) at the end of 2021-22. Out of the total available funds of INR 98.55 crore during the year, the NBOCWWB expended INR 24.22 crore, the CAG added.

There was huge pendency in submission of accounts in respect of autonomous bodies/ other authorities as well as state public sector enterprises, it stated.

The Public Works and Forests divisions were the major units that delayed the rendition of monthly accounts during the year 2021-22, it stated,  adding that delayed rendering of accounts by the account rendering units or authorities distorted the accurate depiction of monthly transactions of the state and impacted effective budgetary management.