Government department rectifies on CAG report

Morung Express News
Dimapur | September 13

The report of the Comptroller and Auditor General of India this year found plenty of discrepancies in the state government departments. The CAG’s findings indicated that many government departments are reeling under severe corruption and the amount of misappropriation of funds runs into crores of rupees.

The department of industries and commerce was slapped with misappropriation of Rs.12.63 lakhs. The CAG report mentioned that the amount was paid to four societies under a scheme as a one time rebate of 10 percent on sale of handloom products on the basis of false claims. The four societies were paid the amount on sales made in 2004-05 though the rebate was admissible only on sales made during April 2006 to August 2006. The report mentioned that the sales made by the four societies reflected in their trading, profit and loss did not agree with the sales shown in the claim certified by the CA and countersigned by the Director in charge of Handloom.

Based on the report, The Morung Express has now learnt from a department source that the furnished report of audit accounts and balance sheet of the four societies were rectified before the CAG report was tabled. The source informed that the four societies submitted “wrong documents” to the department thereby creating confusion. But since the rectifications were made before the final audits were carried out, the source said, how CAG report found the discrepancies, it is not understood. An officer in the department further said that the four societies were paid according to the actual sales made by them and not according to false claims, as mentioned in the CAG report. Further, the officer claimed that all four societies are genuine and functional.

It has also come to light that the department of Industries & Commerce is faced with ample problems of subsidies given on false claims to countless societies. Although the department keeps regular checks on inexistent societies, there is always pressure from various elements. As a department source would like to put it, “We try to cancel license of societies existing only in paper but ‘requests’ come from different corners for payments to be made.” He, however, refused to comment on the involvement of any officer in such regard. The CAG report has pointed out direct involvement of some high level officers in many government departments.
 



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