Comptroller and Auditor General (CAG) of India in its report on General, Economic and Revenue sectors for the year ended March 31, 2019, presented during the 8th session of the 13th Nagaland Legislative Assembly, detected financial anomalies in various departments.
Cases of excess/fraudulent drawals: In its report, the CAG pointed out excess drawal by inflating net total of pay bills where four Drawing & Disbursing Officers (DDOs) of four departments had drawn funds of Rs. 153.25 lakh in 49 pay bills by irregularly inflating the net total amount where actual admissible amount was Rs. 135.57 lakh. This resulted in excess drawal of Rs. 17.68 lakh between the period December 2011 to August 2017. On being pointed out, the CAG report said that one DDO partially recovered Rs.0.40 lakh out of the actual excess funds of Rs. 4.55 lakh. It said that no replies were received (July 2020) from the remaining DDOs.
On double drawal of pay and allowances including arrears, CAG observed that nine DDOs of four departments fraudulently drew funds of Rs. 100.61 lakh in 26 bills pertaining to the period January 2016 to February 2018 being pay & allowances and arrear bills which were already drawn in regular bills. This, resulted in fraudulent drawal of Rs.100.61 lakh. No replies were received (July 2020) from the all the DDOs.
Further, CAG observed that nine DDOs of six departments had drawn funds of Rs. 4872.30 lakh in 78 bills by inflating the basic pay of the employees whereas the actual admissible amount was Rs. 4680.09 lakh. This resulted in excess drawal of Rs. 192.21 lakh pertaining to the period January 2016 to February 2018. It said that two DDOs had submitted their replies (July 2020) while remaining seven DDOs have not responded.
CAG also observed that 20 DDOs of 16 departments fraudulently drew funds of Rs. 140.84 lakh in 88 arrear bills during the period November 2016 to March 2018 on the basis of fictitious due and drawn statement and for those employees who were not entitled to draw arrears.
CAG said that one DDO fully recovered Rs. 2.27 lakh and three DDOs partially recovered Rs.15.06 lakh and deposited into the government account. Out of 20 DDOs, no replies were received (July 2020) from the remaining 13 DDOs, it added. The CAG in its recommendations said that the amount misappropriated should be recovered immediately from the concerned employees/DDOs/TOs. It also said that strict and exemplary disciplinary action should be initiated against erring officers responsible for the fraudulent drawals, so as to deter such occurrences.
CAG suggested rigorous internal audit system to be put in place in at least large departments to prevent the frequency of the fraudulent/excess withdrawals.
Fraudulent/excess drawal: The CAG in its report also pointed out that the failure of DDOs and Treasury officers to exercise prescribed checks resulted in fraudulent/double/excess drawal of Rs. 5.16 crore out of which Rs.4.94 crore was yet to be deposited.
It said that test check of pay bill vouchers of various departments by audit revealed that 42 DDOs of 22 departments had misappropriated Rs. 5.16 crore by fraudulent drawal of pay and allowances.
It said that the money was withdrawn against bogus employees, excess drawal by inflating net total of pay bills, double drawal of pay and allowances, arrears etc. One of the deparment recovered Rs. 0.22 crore and deposited into the government account.
In the report, CAG pointed out that three Drawing & Disbursing Officers (DDOs) of three departments had fraudulently drew funds of Rs. 41.23 lakh on six bills as pay and allowances against 70 bogus employees.
Further, the report said that two DDOs of two departments fraudulently drew Rs. 23.46 lakh in 24 bills as HRA & pay arrears against 44 bogus employees and nine non-entitled employees.
After the matter was pointed out, CAG said that two DDOs partially recovered Rs.4.68 lakh and deposited into the government account.
It however said that no replies were received (July 2020) from remaining two DDOs.
In the five cases, the DDOs concerned did not record the certificates on the arrear bills under his/her dated signature after ensuring to the effect that (i) no part of the amount claimed in the bill had been drawn previously and (ii) a note of the arrear claim had been made in the office copy of the bill or the pay bill register for the period to which the claim pertains while drawing the arrear bills. Similarly, it said that the treasury officers also did not obtain sufficient information as to the nature of every payment as per the bills presented to him/her for payment.
“The blatant and widespread failure of the DDOs and Treasury officers in complying with the provision under Central Treasury Rules and Receipt and Payment Rules indicates possible collusion for fraudulent drawals,” the CAG report stated.