The Assam government has invested over Rs 1,970 crore in State Public Sector Enterprises (SPSEs) which have accounts in arrears for periods ranging from one year to 16 years till 2022-23, a CAG report said on Friday.

It suggested the state government consider not providing further funds to the SPSEs which do not clear its pending accounts.

The report of the Comptroller and Auditor General (CAG) on SPSEs for the year ended March 31, 2023, laid in the Assembly, said the state government invested Rs 1,976.37 crore in 19 SPSEs during the years for which their accounts were in arrears.

Nine of these SPSEs were major recipients of the funds, amounting to Rs 1,939.60 crore or over 98 per cent of the total state government funds.

Among these nine SPSEs, Assam Hills Small Industries Development Corporation Ltd has its accounts in arrears for 16 years at the end of the 2022-23 fiscal, with last accounts finalised for up to 2006-07.

Assam Tea Corporation Ltd has pending accounts for eight years till 2022-23, while Assam Livestock and Poultry Corporation Ltd and Assam State Development Corporation for Scheduled Castes Ltd had accounts in arrears for five years each.

The CAG report said four companies having arrear of accounts of five years or more received budgetary support of Rs 692.21 crore, out of which Rs 614.13 crore was meant to meet salary-related expenses of employees, which was a burden on the state budget.

“In absence of accounts and their subsequent audit, it could not be verified if the investments made and the expenditure incurred there against have been properly accounted for,” it noted.

The report also said that persistent delay in finalisation of accounts is fraught with the risk of fraud and leakage of public money.

It suggested that the state government may consider setting up a special cell under the Finance department to oversee the expeditious clearance of arrears of accounts of SPSEs.

Where there is lack of staff expertise, the government may consider outsourcing the work relating to preparation of accounts and take punitive action against the management of the SPSEs, the CAG report said.

“Until the accounts are made as current as possible, the government of Assam may consider not providing further financial assistance to such SPSEs,” it added.