The Comptroller and Auditor General (CAG) of India has reported multiple instances of financial irregularities, inadmissible expenditure, suspected fraudulent payments and revenue losses across departments in Nagaland for the period 2017–2023. The report was tabled in the State Assembly on March 26.
According to the report, the Nagaland Building and Other Construction Workers’ Welfare Board diverted Rs.1.50 crore from cess funds to procure nine vehicles in violation of rules, while Rs.2.68 crore collected between 2018 and 2022 was either delayed or not remitted within the prescribed time. The audit also found that none of the sampled migrant construction workers were registered as beneficiaries.
In the Health sector, the audit pointed to shortages of facilities and manpower, with 52% of Health Sub-Centres understaffed and absence of key diagnostic and emergency services in district hospitals. PSA oxygen plants installed in several facilities remained largely unutilised.
On urban governance, the report noted that Urban Local Bodies (ULBs) have been functioning without elected representatives for the past 15 years, with only one fully devolved function out of 18. Financial management remained weak, with no municipal account code and continued dependence on government grants.
In solid waste management, only 6.50% of collected waste was processed in sampled ULBs, while major infrastructure such as Rs.48.63 crore compost plant and landfill in Kohima remained non-functional.
The audit on police modernisation revealed that Rs.1.71 crore was paid for works not executed based on false measurements, while seven Abstract Contingent bills amounting to Rs.25.50 crore remained unadjusted.
In GST administration, the report highlighted lack of scrutiny guidelines, non-issuance of notices in 19,815 out of 21,026 non-filing cases, and short levy of Rs.1.86 crore due to turnover mismatches of Rs.188.21 crore.
The report further detailed department-wise irregularities: Public Works Department (R&B) made irregular payment of Rs.5.86 crore for short-executed works based on fictitious entries.
- Water Resources Department made irregular payment of Rs.0.58 crore for short-executed works and utilised Rs.2.48 crore inadmissibly for procurement of 20 vehicles.
- Tourism Department recorded suspected fraudulent payment of Rs.1.36 crore for unexecuted works and failed to realise Rs.27.53 lakh in lease rentals due to non-renewal of agreements.
- Rural Development Department misutilised Rs.0.84 crore out of Rs.1 crore sanctioned under tied grants through inadmissible works and procedural lapses.
- School Education Department made excess payment of Rs.0.94 crore due to printing of fewer textbook pages than approved.
The Home (Police) Department failed to recover Rs.54.82 crore from banks and institutions towards deployment of police guards, despite earlier assurances.
The Finance (Treasuries & Accounts) Department reported fraudulent/double/excess drawal of Rs.0.68 crore by 13 Drawing and Disbursing Officers, of which Rs.19.74 lakh remained unrecovered.
The report also flagged a Rs.27.97 crore water supply pipeline project for Kohima as unfruitful, as it remained uncommissioned due to non-augmentation of water sources, with supply falling far short of demand.
The CAG recommended fixing accountability, ensuring compliance with financial rules, strengthening internal controls, and initiating recovery of excess and misappropriated funds.