Morung Express News
Dimapur | March 31
The Comptroller and Auditor General (CAG) of India in its report for Nagaland State for the year ending March 31, 2016 has detected cases of excess/fraudulent payments and suspected misappropriation of government funds in several departments.
It particularly pointed to cases involving the PWD (R&B), Rural Development Department, Department of Fisheries and the Tourism Department.
Excess payment to contractor
The CAG report informed that “excess and inadmissible payment” to the amount of Rs 8.01 Crore was made to a contractor “by arbitrarily increasing the rates of three items of work.”The payment, the CAG stated, was made for the upgradation of the Dimapur-Niuland Road to a major district road. The Ministry of DONER had sanctioned Rs 29.41 Crores for this work in August 2010.
The CAG however revealed that the Executive Engineer, PWD (R&B) had on July 14, 2011 submitted a proposal for revision of the estimate of project cost to Rs 39.90 Crores “only nine days before the actual completion of the work (July 23, 2011), on grounds of variation in quantities of work during execution.”
On examination of revised Bill of Quantity (BOQ), the CAG observed that the quantities of three items of work were increased while the quantities of six items of work were reduced.
While informing that the government in reply on August 2016 had stated that the project cost was revised, the CAG however pointed out that it was silent on how the rate of the three items of works was enhanced arbitrarily.
Misappropriation of MGNREGS fund
With regard to the RD Department, the CAG reported suspected misappropriation of MGNREGS fund. It referred to a case where the BDO, Ghatashi “transferred an amount of Rs 2.53 Crore to two private bank accounts out of the fund of Rs 8.69 Crores received under MGNREGS during 2013-14.”
It further termed the government’s reply that the fund was temporarily parked in two individual accounts due to “unavoidable circumstances,” and the explanation of the BDO along with the furnished APRs to support payment of the “temporarily transferred” amount to the VDBs as “not acceptable.”
It informed that the APRs provided “in fact pertained to Rs 1.01 Crore drawn in cash by the BDO and not in respect of the amounts transferred to individual accounts.” The CAG further reported that as per the actual transaction of the two accounts and the accounts of the VDBs, “Rs 2.43 Crores transferred to these two accounts were never credited to the VDBs nor reverted back to government account.”
Rather, it observed that the Rs 1.07 Crore parked in one of the accounts was transferred to the other on April 2, 2014 through Real Time Gross Settlement (RTGS).
“The possibility of misappropriation cannot be ruled out. The government needs to investigate these transactions,” the CAG recommended.
‘Fraudulent payment’
In the Department of Fisheries, the CAG found that the department obtained fund worth Rs 4.99 Crores for construction of community based fishery ponds at Beiswampui, Peren from the Government of India on the basis of “doubtful beneficiaries list.” It revealed that the full amount was paid to an individual “who was not among the eligible beneficiary.” Out of this, Rs 1.77 Crore was paid “without actual execution of civil works,” it added.
Scrutiny of the Utilisation Certificate, Quarterly Progress Report and Completion Certificate revealed discrepancies of “incorrect beneficiary list, payment to an ineligible beneficiary and fictitious payment,” the CAG stated.
Meanwhile examination of the Detailed Project Report found that 47 fisheries ponds were to be constructed at the cost of Rs 4.65 Crores. However, the CAG stated that only 36 fishery ponds existed on the project site, out of which three were natural water bodies.
The quantum of civil works actually executed would “likely work out to Rs 2.88 Crores,” it posited. During physical verification, the CAG informed that as per the project in charge, work was still in progress and more fishery ponds would be constructed.
Regarding the beneficiary issue, the government and the department on July 2016 stated that the “villagers authorized the individual to receive the payment.”
The CAG viewed this reply as “not acceptable as there was nothing on record to show that the beneficiaries authorized the individual to receive the funds on their behalf.”
‘Misutilisation of govt revenue’
The CAG also reported the “possibility of misutilisation/misappropriation” of Rs 50.74 lakh received as compensation from the National Highway Authority of India through the DC, Dimapur during October and November, 2014.
The compensation amount was in relation to two amenity centres located at Kukidolong and Piphema village, constructed through funds received from the GoI on land acquired by the Department of Tourism.
The CAG informed that Rs 50.74 lakh received as compensation was “neither accounted for nor deposited into the government account by the DoT.”
The department meanwhile has stated that an amount of Rs 25 lakh was utilized during departmental trip to China for attending the International Travel Mart and the whereabouts of the balance amount remain unknown. This case is under investigation by the State Vigilance Commission.
