PRIs' inaction leads to loss of Rs 220 crore for State: CAG

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Comptroller and Auditor General (CAG), in its report on local bodies tabled in Jharkhand Assembly on Friday, detects huge non-utilisation of Central funds due to inaction of Panchayati Raj Institutions (PRIs).

Jharkhand Auditor General S Raman, talking to the mediapersons at his office after the report was tabled in the Assembly, revealed that the State Government lost Rs 220.03 crore out of the 13th Finance Commission grant for the award period of 2010-15.

Raman added that the Centre released only Rs 1,594 crore against the overall entitlement of Rs 1,814 crore due to failure to meet conditions like adoption of model accounting system, constitution of Director of local Fund Audit and submission of utilisation certificates in prescribed formats within stipulated timeframe. 

Moreover, Rs 8.19 crore was withdrawn in an unauthorised way from Chatra Treasury without receiving the allotment orders from the Government of Jharkhand, he said.   

Similarly, there was an operating loss of Rs 3.69 crore from the bus service which made the operation unsustainable. Ultimately, Jharkhand Tourism Development Corporation (JTDC) declined to continue operation and 126 out of 190 buses purchased were grounded. According to the CAG report, it resulted to the denial of the public transport service to the people.

“Against the total income of Rs 15.56 crore, the JTDC incurred an expenditure of Rs 19.25 crore resulting to a loss of Rs 3.69 crore. The reason for the losses were mainly on account of lower deployment of buses in the three cities due to frequent breakdown and want of annual maintenance contract, collection of fare lower than the prescribed rate etc.,” said the AG. These losses made the bus operation unsustainable and JTDC ultimately stopped operations in Jamshedpur, Dhanbad and Ranchi, he added.

“The Government should work out a viable action plan for restoring the bus services in accordance with the scheme guidelines,” suggested the AG.

The CAG report also pointed out that the Solar Street lighting System  was procured on higher rates despite its availability on subsidised rates which resulted into an avoidable expenditure of Rs 53.78 crore.

“Despite the fact that it was available with Jharkhand Renewable Energy Development Agency (JREDA) Ranchi at a cheaper cost of Rs 7.69 lakh, Solar Street lighting System was purchased by the PRIs for Rs 61.47 lakh at DGS&G rates.” The AG added. It led to a loss of Rs 53.78 lakh, he said.

The CAG also pointed out the State Government’s failure to make crematorium functional in more than six years by the Ranchi Municipal Corporation depriving the general public of the intended facility besides, resulting into infructuous expenditure of Rs 1.49 crore on the non-functional Structure.

The CAG report also reflected acute shortage of manpower (up to 77 per cent) at Zila Parishad level which affected their functioning. Out of 958 sanctioned strength in 14 test - checked Zila Parishads, only 225 posts were in position while 733 positions were found to be vacant.

The CAG also pointed out that out of a total amount of Rs 3,794 crore received by Government of Jharkhand under MGNRGA during 2011-15, one per cent (Rs 37.94) was to be allocated for social auditing. “But neither any separate allocation for Social Audit was made nor any expenditure was incurred by the department during 2011-15,” the report said.

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