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CAG detects 36 misappropriation cases of Rs 215 cr


Kohima, February 21: There are 36 cases of misappropriation, losses, etc involving Government money of Rs 215.89 crore (amount involving Rs 218.56 crore out of which Rs 2.67 crore was recovered) up to the period ending March 2019 on which final action was pending.

This involves 30 cases of misappropriation and losses, 4 cases of theft and 2 cases of defalcations, stated the Comptroller and Auditor General (CAG) of India in its State Finances Audit Report of Nagaland Government for the year ended March 2019, and tabled by Chief Minister Neiphiu Rio in the just concluded Assembly session.
The department-wise break up of pending cases upto 10 years are: Health and Family Welfare – 6, School Education and Rural Development – 4 each, PWD (Roads & Bridges) – 3, Tourism, Public Health Engineering, Municipal Affairs, Taxes – 2 each and one each in Power, Planning & Coordination, Land Records & Survey, Urban Development, Technical Education, PWD (National Highways), Woman Resources Development, Information & Public Relations and private firms.
A further analysis indicated the reasons for outstanding cases of misappropriation, losses and defalcations to 26 cases of departmental and criminal investigation outcome involving Rs 203.61 crore, departmental action initiated but not finalized for 6 cases amounting to Rs 93 lakh, orders awaited for recovery or write off amounting to Rs 11 lakh and two pending court involving Rs 13.91 crore.
The report stated that the highest amount of misappropriation, loss and theft that amounted to Rs 82.96 crore involved two cases of misappropriation, one case of theft and one case of loss of Government material in School Education Department, out of which an amount of Rs 57 lakh has been recovered as on December 2019.
Departmental CUs unaccounted for 39 years
Some commercial undertaking managed by State Government departments have arrears of Performa Accounts for periods ranging between 2 to 38 years as of March 2019, revealed the CAG Report.
The report said State Government departmental undertakings perform activities which are of quasi-commercial nature and the financial results of such departmental undertakings are in Proforma Accounts.
The CAG observed that there are eight departmentally managed State Government commercial undertakings, and a mention was also made in the report of the CAG on State Finances for the year 2012-13 about delay in preparation of Proforma Accounts of those undertakings. Despite this, accounts were in arrears for periods ranging between two and 38 years as of March 2019, it said.
The department-wise position of the year up to which Proforma Accounts were not finalized is:

  • Nagaland Power Department for 2 years from 2017-18 to 2018-19
  • Nagaland State Transport Department for 6 years from 2013-14 to 2018-19
  • Farms under Agriculture Department: Potato Seed Farm Kuthur for 20 years from 1999-01 to 2018-19, Seed Farm, Tizit for 19 years from 2000-01 to 2018-19 and Medium Size Seed Farm, Merapani for 18 years from 2001-02 to 2018-19
  • Changki Valley Fruit Preservation Factory for 13 years from 2006-07 to 2018-19
  • Timber Treatment and Seasoning Plant Dimapur and Government Cottage industries Emporia, Kohima for 21 years from 1998-99 to 2018-19
  • Farms under Veterinary and Animal Husbandry Department: Cattle Breeding Farm Medziphema, Cattle Breeding Farm Tuensang, Cattle Breeding Farm Aliba, Chick Rearing Centre (with Hatchery unit) Mokokchung, Chick Rearing Centre (with Hatchery unit) Dimapur, Regional Rabbit Breeding Farm Jharnapani, Pig Breeding Centre Merangkong, Chick Rearing Centre Kohima, Pig Breeding Centre Sathuja, Cattle Breeding Farm Baghty, Sheep Farm, Poilwa and Buffalo Farm Jalukie for 21 years from 1998-99 to 2018-19
  • Pig Breeding Centre Medziphema and Pig Breeding Centre Tizit for 22 years from 1997-98 to 2018-19
  • Chick Rearing Centre Tuensang, Chick Rearing Centre Medziphema and Pig Breeding Centre Tuensang for 35 years from 1985-86 to 2018-19
  • Pig Breeding Centre Tuli for 39 years from 1980-81 to 2018-19
  • Farm under Horticulture Department: Regional Progeny Orchard Lonnak for 22 years from 1987-88 to 2018-19
    In the absence of timely finalisation of Accounts, Government’s investment remains outside the scrutiny of the Audit/State Legislature, the CAG stated.
    Consequently, corrective measures required, if any, could not be taken in time. Besides, delay in preparation and submission of Proforma Accounts also exposes the system to risk of fraud and leakage of public money, it said.
    The CAG recommended that the Government to ensure timely preparation of accounts by the Departmental commercial undertakings and autonomous bodies and monitor the same. Effective steps are required to be taken by the State Government for clearance of arrears of accounts on priority, the CAG report added. (Page News Service)