Nagaland chief minister T.R Zeliang tabled the Comptroller and Auditor General of India (C&AG) report for the year 2014-2015 on the last day of the 11th session of the 12th NLA on Saturday.
The CAG report for the year ended March 2015, has detected mismanagement of fund, lack in proper planning and implementation of central schemes, non-completion of projects, etc under various departments in the state.
CAG report contained compliance audit of the departments under the state government on social, economic, revenue and general sectors including the department of youth resources and sports, school education and employment social welfare, rural development, public works, forest, ecology, environment and wildlife, agriculture and allied departments and national highways.
The report stated that the draft performance audits were sent to the secretary of the departments concerned by the Accountant General (Audit) to furnish replies within six weeks. However, CAG observed that the replies were not received from the secretaries of the responsible departments in respect of five audit paragraphs.
Embezzlement of MGNREGA fund: According to CAG report, out of Rs. 10.19 crore received under MGNREGA by BDO, Tokiye during 2011-12, the BDO transferred Rs. 1.37 crore to his personal account, Rs. 0.43 to another officer’s account and Rs. 0.93 crore transferred back to the account of the PD, DRDA MGNREGA Zunheboto.
CAG also detected suspected misappropriation of MGNREGA funds of Rs. 118.40 lakhs that was allegedly paid by BDO Aghunaqa was not received by 12 VDBs.
Excessive payment in marketing incentives: The report also alleged that director of industries and commerce paid Rs. 2.32 crore to 48 ineligible and seven non-functional societies on the basis of false sales details and Rs. 65.71 lakh as marketing incentive to 16 co-operative societies above the subscribed rate.
Department of Youth Resource and Sports (DYR&S): CAG has detected several lapses in planning, financial management and construction of sports infrastructure in department of Youth Resources and Sports (YRS).
The report stated that the only aspect worthy of appreciation noticed was there was no “gender bias” in selection of sportspersons for imparting training at two establishments in the state.
It observed that the search programme for scouting for talents at sub-division were not conducted which resulting in lost opportunity of tapping into sports talents at the grass root level while the state government did not release funds under Panchayat Yuva Krida aur Khel Abhiyan (PYKKA) resulting in refund of Rs. 1.27 crore to the central government including penal interest of Rs. 0.24 crore.
YRS has also diverted Rs. 5.71 crore from the approved developmental activities by violating the conditions of the sanction while the multi-disciplinary Sports Complex was not functional despite an expenditure Rs. 58 crore incurred on its construction.
CAG also alleged that sports infrastructure created at Rs. 45.43 crore to develop the cricket stadium at Sovima failed to meet National/international standards while also the department released Rs 6.02 crore against unexecuted items of work by recording fraudulent measurement in the Measurement Book against seven projects.
Coaches and sportspersons were not motivated due to and inadequate equipment lack of job reservation policies for sportspersons, inadequate provision of rewards and incentives and there was no quality assurance mechanism in purchase of sports goods/equipments.
Implementation of MDM Scheme: C&AG report also pointed out that there was inadequacy report in all the three key aspects- effective implementation of scheme, financial management and management, stating that the annual work man and budget was prepared without compiling the data from the reliable source which led to over projection of number of children. State Government during 2010-15 has furnished inflated figures in enrolment of children by putting the figures at 3,50,858 over the figures of SSA to avail more funds under MDM scheme. In selected four districts, the inflated figure was 2,02,515, the report said.
It alleged that implementation of scheme was not satisfactory and also did not achieve the objective of providing nutritious cooked meals to eligible children.
CAG also observed that non-lifting of food grains from nearest Food Corporation of India (FCI), Food Stores Depot (FSD) resulted in excess expenditure of Rs. 1.21 crore on transportation cost during 2010-15 while against the release of Rs. 153.05 crore for 2010-15 by the centre. In this, state government released only Rs. 131.93 to the nodal department leading to shortage of Rs. 21.12 crore, the release said.
Besides, state government did not release its matching share to the extent of Rs. 7.95 crore during 2012-15.
It added that the inspection and monitoring mechanism was very poor where 55 % schools were never inspected or even a single inspection report was submitted by the inspecting officers.
Nagaland Pollution Control Board (NPCB): The report also observed that NPCB, the main agency in the state for enforcement of environment law and responsible for formulation of policy for prevention, control and abatement of pollution in the State, did not prepared annual action plan and therefore the activities undertaken were adhoc in nature.
Laboratory at Dimapur did not have facilities and equipment to analyze necessary parameters of water and air quality, available equipment was non-functional in some cases, stated the report.
It could only analyze 36 parameters out of 57 parameters set by Central Pollution Control Board (CPCB).
Out of 752 industries in the State as per Board’s record, 617 industries (82 %) were operating without renewal of their Consent for Operation (CFO) from the NPCB after its expiry while out of 112 Health Care Establishments (HCE), 109 HCEs did not have the Bio-medical Treatment facility. Majority of vehicles were plying without Pollution Under Control (PUC) certificates while out of 154020 registered vehicles in Kohima and Dimapur upto March 2015, only 3833 vehicles were issued PUC certificates during the last five years, the report said.
Nagaland Bamboo Development Agency (NBDA): CAG audit finding also revealed that NBDA has not prepared Bamboo Development Mission Document (BDMD) but prepared the annual action plan without conducting feasibility studies and faulty classification of “forest area” and “non-forest area” which led to excess and inadmissible financial assistance of Rs. 47.10 crore.
It stated that an expenditure of Rs. 59.30 lakh was incurred on items without the approval of National Bamboo Mission (NBM) while Rs. 1.86 crore sanctioned by NBM for plantation activities was diverted to other activities. The report alleged that the agency procured saplings in excess of norm resulting in “avoidable expenditure” of Rs. 7.09 crores while Rs. 0.32 crores released by NBM for disease and pest control was not utilized by the board.
NBDA has also failed to set up 11 bamboo bazaars and three whole sale markets resulting in retention of unutilized funds of Rs. 0.93 crore.
SARDP project: Ministry of Road Transport & Highways (MoRTH) has approved two-laning of four roads in the State in April 2010 in one package for Rs. 1,296 crore including percentage charges.
The administrative, technical approval and financial sanction for the work was accorded in December 2010, report said.
However, CAG said that the preliminary activities taken up by the department of public works was inadequate for timely implementation of the project. DPRs prepared for four roads were not based on adequate surveys and a proportionate amount of Rs. 36.44 crore paid to the consultant for preparation of DPRs was a waste.
CAG alleged that not a single kilometer in any of the four roads was completed as per the objectives of the scheme despite an expenditure of Rs. 602.34 crore on execution of work. No further progress of work achieved on any of the four roads since August 2012 and the single-lane roads which previously existed had degraded almost unusable causing hardship to the commuters.
Functioning of ITS’s under labour and employment: Out of the training scheme introduced by Government of India, eight were established in Nagaland with the objective to ensure a steady flow of skilled workers to the industry to meet the manpower requirements in different trades.
According to CAG report, the planning process was inadequate which resulted in failure to identify the trade/occupations needed in the state and challenges faced by ITIs.
It observed that the schemes were implemented without action plans resulting in procurement of machineries and equipment for discontinued trades.
Due to non-affiliation of the trades to National Council for Vocational Training (NCVT), the students who passed out from it remained ineligible for recruitment to other than the posts and services under Nagaland State Government establishments and Public Sector Units.
It added that there was no placement cell in the ITIs to carryout follow up action of the successfully trained students, drinking water and hostel facility with basic amenities were not available in any of the ITIs.
Excess payment to suppliers under social welfare: Director of Social Welfare extended an undue benefit of Rs. 1.25 crore to suppliers on procurement of ICDS materials by allowing VAT in addition to the tendered rate, though the tendered rate was inclusive of VAT, alleged CAG.
An amount of Rs. 2.54 crore was fictitiously drawn by the Sub-Divisional Education Officer. Zunheboto on behalf of pseudo-anonymous employee’s during 2010-14, stated the report.
Implementation of PMGSY: PMGSY programme was launched throughout the country by the Government of India to provide all weather roads to unconnected habitations where 3629.63 Km was earmarked to be constructed under PMGSY since inception of the programme up to Phase VIII.
However, CAG said that 13 unidentified habitations not incorporated in the Core Network were included in the Core network Comprehensive Priority List (CNCPL) leading to many instances of deviations and discrepancies between DPRs and actual execution of works.
The prioritized Yezami village road was abandoned after formation cutting and widening works where Rs. 5.56 crore spent on construction was wasteful. Out of 56 projects taken up in Phase VIII only five projects were completed in time. Of the remaining 51 projects (as of July 2015) 17 projects completed after a delay ranging from 67 to 574 days and balance 34 projects remained incomplete, stated the report.
An amount of Rs. 19.78 crore was paid against fraudulent depiction of completion of work while a total of 2460.50 metres length of retaining walls valued at Rs. 8.35 crore but was not constructed.
CAG alleged that the department did not initiate any action to rectify the workmanship and penalize the contractors on the adverse remarks made by National Quality Monitors (NQM) and State Quality Monitors (SQM) on the quality of the works.
Nagaland State Transport ‘infructuous expenditure’: Due to lack of proper planning and consultation with stakeholders, the Inter State Bus Terminus (ISBT) constructed at the cost of Rs. 7.50 crore at Mokokchung remained idle for the last four years. According to the CAG report, the issue was reported to the government in July 2015 but has not received response till January 2016.
Fictitious drawl: CAG also detected fraudulent drawal of Rs. 2.81 crore by 41 DDOs and out of the fraudulent/excess amount drawal by the DDOs an amount of Rs. 91.34 lakh was recovered by 27 DDOs at the instance of audit.
The department of treasuries and accounts, planning and co-ordination and the civil secretariat fictitiously drew Rs. 9.40 lakh by presenting duplicate hotel bills and the department drew Rs.18.05 lakh for computer hardware and peripherals.