PAC detects anomalies in various departments

Our Reporter
Dimapur, Feb. 24 (EMN): Nagaland government, under the department of Youth Resources and Sports (DYRS), had approved INR 4.99 crore for upgrade of playfield, construction of rostrum, drainage and galleries in Pfutsero, which was completed accordingly. However, during a joint inspection in June 2015, it was found that only 70% of the work was completed and the workmanship was poor due to which the playfield could not be opened to the public.

This was stated in the Public Accounts Committee (2020-21) report which was presented at the recently concluded Assembly session.

It was observed that the galleries were constructed 4 feet above the ground level without accessibility, while drainage in the playfield was opened instead of closed drainage, proper public toilets were not constructed, the playfield was uneven and earth excavated was dumped on the playfield itself.

While the DYRS had paid the entire amount to the contractor despite deficiencies in the work, only 70% of the work was completed. The sub-divisional officer (SDO), during the joint inspection, assured that the deficiencies would be rectified through the contractor, the PAC stated.

When questioned why full payment was made to the contractor, the department stated in a written reply that the project was completed and full payment was made accordingly. But during the execution of the 2nd phase, some portion of the 1st phase work was damaged and when the audit team visited, the damaged portions were ‘removed to be placed afresh like drain cover,’ it reported.

The department also stated in a written reply that the toilets were clogged and hence were undergoing maintenance work, while the excavated earth dumped on the playfield was to be used for levelling of the uneven surface of the playfield, and the construction of galleries 4 feet above the ground were as per the approved drawings.

During oral evidence, when the committee asked the department on the status of the MGNREGAS/ local area programme, the department replied that a completion certificate had been submitted in this regard. Further, the department stated that due to lack of infrastructure for other games, the cricket pitch in Kohima is being utilised for other games like archery. The construction of a playground at Changlangshu in Mon district and development of community ground at Jalukie in Peren district are completed and completion certificates were furnished.

The committee, in its recommendation, stated that the completion certificate of outdoor sports complex at Peren and playground at Pfustero were issued on October 15, 2018. However, the committee said that even if a completion certificate had been issued by the department, it was ‘in paper only’ and therefore the committee had recommended instructing the officers of the department to physically inspect the works one after another.

The PAC stated that the inspection report should be furnished within two months from the date of presentation of this report to the House.

MDM implementation in Dimapur

The department of School Education included 17 National Child Labour Programme (NCLP) schools each year during 2011-15 for implementation of mid day meal (MDM) scheme in Dimapur district for a total budget estimate of INR 47.27 lakh. The total budget estimate included INR 34.78 lakh for cooking cost, and INR 3.03 lakh for transportation cost of 167.38 MT valued at INR 9.46 lakh, according to the Public Accounts Committee (2020-21) report, which was presented at the recently concluded Nagaland Legislative Assembly session.

However, examination of records revealed that the department allocated only INR 29.83 lakh cooking cost and 120 MT of food grains to the sub-divisional education officer (SDEO), Dimapur. Thus, the SDEO Dimapur short received INR 4.95 lakh cooking cost, 47.38 MT good grains and INR 3.03 lakh transportation cost.

In turn, the SDEO Dimapur allocated only INR 28.51 lakh cooking cost and 85 MT of food grains to the project director of NCLP, Dimapur, and thus there was short receipt of INR 1.32 lakh and 35 MT of food grain valued at INR 1.98 lakh by the implementing agency. This had an adverse effect on the implementation of MDM in the NCLP schools in the district, according to the report.

In an audit query, the report stated that the department has not replied about the short receipt in MDM components such as cooking cost and food grains between the department and SDEO-Dimapur and between SDEO-Dimapur and project director, NCLP-Dimapur.

The committee in its recommendation stated that various MDM components such as cooking cost and food grains were not managed the way it should have been as there was discrepancy and issue of short receipts between the department and SDEO, Dimapur, and between the SDEOs, Dimapur to project director, NCLP Dimapur, which adversely affected implementation of the MDM scheme.

The committee also stated that the department should not shy away from their responsibility on every activity and recommended to carry out thorough investigation and submit action taken report within two months from the date of laying “this” report in the House.

Social Welfare department

The director of Social Welfare extended an undue benefit of INR 1.25 crore to suppliers on procurement of Integrated Child Development Services (ICDS) materials by allowing VAT in addition to the tendered rate, though the tendered rate was inclusive of VAT.

This was stated in the Public Accounts Committee (2020-21) report which was presented at the recently concluded Assembly session.

Examining records of July 2014 revealed that the department procured ICDS materials valued at INR 10.66 crore from four suppliers during the year 2011-12 and 2012-13. On detailed examination of the supply orders and the suppliers’ bills audit, it was observed that VAT was allowed over and above the approved rate inclusive of VAT.

When asked in an audit query about the added VAT and if the excess payment was recovered, the department replied that it was due to oversight and that the department has written to the concerned forms for recovery, stated the report.

During the oral evidence, the department stated that it has written to all the contractors and suppliers to recover the excess payment but till date no payment has been made and therefore they failed to give a concrete reply to the committee.

The committee in its recommendation stated that the explanation advanced by the department was not acceptable. It noticed that the department had issued the supply order at the approved rate inclusive of taxes. During the course of evidence, the departmental representative assured to submit the recovery report within two months time but failed to do so, the report stated.

Owing to this, the committee has recommended the department to make all out efforts for regularisation and recovery of excess expenditure of INR 1.25 crore. It further directed the department to take action, give a final notice and file an FIR.

The PAC stated that the remaining payment should be intimated to the committee within two months from the date of presentation of the report to the House.

MGNREGS

Under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), verification of transactions of the cash book with the bank statement maintained by Block Development Officer (BDO) revealed that out of INR 892.96 lakh, only  INR 288.81 lakhs was transferred to VDBs account and INR 604.15 lakhs was drawn in cash.

This was stated in the Public Accounts Committee (2020-21) report which was presented at the recently concluded Assembly session.

According to the scheme operational guidelines, all payments of wages were required to be made through banks and post offices and separate bank accounts were directed to be opened for the funds under the scheme at the state, district and block level in public sector banks. In the absence of Panchayati Raj Institutions in Nagaland, the Village Development Boards (VDBs) were entrusted the responsibility of implementing MGNREGS at the village level.

During audit verification, it was found that out of INR 892.96 lakhs, only INR 288.81 lakhs was transferred to 36 VDBs bank accounts and INR 604.15 lakh was drawn in cash against 37 cheques.

The PAC stated that to ascertain the actual transfer of the funds, cash book of 12 VDBS out of the 36 were cross examined which revealed that against the sanctioned amount of INR 284.69 lakh for 12 VDBs, the VDBs actually received only INR 166.29 lakh– INR 125.66 lakh through bank transfer and INR 40.63 lakh by cash leading to a short receipt of INR 118.40 lakh by 12 VDBs.

Thus, an amount of INR 118.40 lakh shown in the records of BDO as paid to 12 VDBs was actually not paid. It said that the possibility of short payment to the remaining 24 VDBs also could not be ruled out in view of the fact that a total of INR 604.15 lakh was withdrawn in the cash from the bank instead of transferring the same directly to the bank accounts of the VDBs.

In an audit query, when the committee questioned why the BDO Aghunaqa withdrew INR 604.15 lakh in cash, which was meant for implementation of MGNREGS in 36 villages and why an amount of INR 118.40 lakh shown in the records of the BDO as paid to 12 VDBs were actually not paid to the VDBs, the department of Rural Development did not furnish any reply.

During oral evidence, the departmental representative replied that the receipt of money by 12 VDBs had been recorded and maintained by the programme officer.

The committee in its recommendations stated that the transfer of money to the personal account of the three officials of the department was highly irregular practice, which amounted to misappropriation of public funds.

The committee recommended the department to submit the enquiry report and the disciplinary action taken against the erring officials within two months from the date of presentation of this report to the house.