Eastern Mirror Desk
Dimapur, Sep 21: The Comptroller and Auditor General of India (CAG) has stated in its report on Nagaland state for the year ending March 31, 2017, that it had detected diversion and misappropriation of scholarship funds amounting to INR 1.08 crore under Technical Education Department.
The CAG report that was tabled during the second session of thirteenth Nagaland Legislative Assembly on September 20 stated an amount of INR 56.12 lakh from the funds for scholarship schemes were diverted for private use, while an amount of INR 51.87 lakh was also suspected to be misappropriated as there was no record for utilisation of the said amount.
The Directorate of Technical Education implements three scholarship schemes namely State Technical Scholarship, Merit-cum-Means based Scholarship and Post Matric Scholarship. Records (March 2017) in CAG report has revealed that the Directorate received an amount of INR 3.30 crore (2015-16: INR 1,64,99,600.00; 2014-15: INR 1,64,96,300.00) under State Technical Scholarship scheme from the state government. Out of this, an amount of INR 1.81 crore (2015-16: INR 1,20,16,400.00; 2016-17: INR 61,02,300. 00) was disbursed to 2,175 students (2015-16: 1368 students and 2016-17: 807 students) by Direct Benefit Transfer, leaving a balance of INR 1.49 crore.
On examination (March 2017) of subsidiary cash book of the Directorate of Technical Education and bank statements (Bank Account No. 1041050017790 – United Bank of India, Kohima branch), which is solely operated for transaction of scholarship funds, it has been found out that an amount of INR 1.32 crore, out of the total balance of INR 1.49 crore, was utilised for purposes other than scholarships.
It revealed that INR 35 lakh was utilised as admission fee of three candidates belonging to the backward tribes of Nagaland for MBBS course and consultancy fee, while INR 40.01 lakh was utilised for farewell function of retired director, INR 1.80 lakh for purchase of computers/laptops, and INR 3.32 lakh diverted for salaries of fixed pay employees. Detail of utilisation of the remaining amount of INR 51.87 lakh was not ascertainable, the report stated.
While accepting (July 2017) the diversion of scholarship funds, the department stated that advances were granted to some staff from the scholarship fund due to urgent needs (did not mention the amount of advance disbursed out of scholarship fund but stated that INR 6.01 lakh had been recovered and deposited to the account). The department also stated that INR 6.01 lakh had been recovered from the staff and another INR 18 lakh (out of INR 40.01 lakh) was recovered from a retired director and the balance amount would be recovered from him on instalment basis.
The department also stated that INR 3.32 lakh, which was utilised for payment of salaries of employees, had also been recovered though no documentary evidence in support of the recovery of the amount was furnished to auditors. It further claimed that INR 51.87 lakh had not been utilised and the same was lying with the department.
The report stated that the response of the department is not acceptable as the scholarship fund cannot be utilised for private functions, payment of admission fees and individual needs of the staff. It also stated that the claim of the department that INR 51.87 lakh was not utilised is unacceptable as the amount was drawn through self-cheques and there was no documentary evidence of the said amount being remitted to the scholarship account.
The CAG report said that the Department of Technical Education irregularly diverted scholarship funds amounting to INR 56.12 lakh, while the unspent amount of INR 51.87 lakh was drawn through self-cheques and not remitted to the scholarship account. It further remarked that department should lodge FIRs against the concerned officials for diversion and suspected misappropriation of scholarship funds amounting to INR 1.08 crore and also refer the matter to the State Vigilance Commission for investigation.
