Suspects embezzlement of over Rs 1,287 cr
Kohima, February 20: Failure of Government departments to submit Detailed Countersigned Contingent (DCC) bills worth Rs 526.77 crore and Utilization Certificates (UCs) for Rs 760.72 crore has raised doubts on Rs 1,287.49 funds being misutilized as on March 31, 2019.
The Comptroller and Auditor General (CAG) of India in its report (Finance Accounts Vol-I, 2018-19) of Nagaland Government for the year ended March 2019, tabled by Chief Minister Neiphiu Rio in the just concluded Assembly session, reported that the 291 DCC Bills including 107 up to 2016-19, 60 for 2017-18 and 124 for 2018-19 were not submitted to the Office of the Accountant General and therefore could not be vouched as correct.
The advances drawn are not accounted for and it increased the possibility of wastage, misappropriation, malfeasance, etc., the report said, adding there was no assurance that the expenditure of Rs. 526.77 crore was actually incurred for the purpose for which it was authorized by the legislature.
The major defaulting departments are: Home – 113 Abstract Contingent (AC) Bills amounting to Rs 89.93 crore, Police – 52 AC bills amounting to Rs 279.85 crore, Youth Resources & Sports – 38 AC bills amounting to Rs 29.79 crore and Tourism Department – 16 AC bills amounting to Rs 25.77 crore.
Non-receipt of 187 UCs
The CAG report also stated that non-receipt of 187 Utilization Certificates (UCs) for grants-in-aid during the same period indicated absence of assurance on utilization of Rs 760.72 crore.
The major defaulting departments are School Education – 18 UCs worth Rs 171.87 crore, Industries & Commerce – 29 UCs worth Rs 27.39 crore, Youth Resources & Sports – 2 UCs involving Rs 14.88 crore, and Health & Family Welfare – 16 UCs amounting to Rs 11.1 crore.
National Pension Scheme
Meanwhile, the CAG said the Government collected Rs. 86.74 crore from employees as contribution towards National Pension Scheme (NPS) and contributed only Rs. 58.17 crore as Government’s share towards the scheme.
It pointed out that the Government did not discharge its statutory liability as it failed to contribute Rs. 28.57 crore as Government’s matching share under NPS.
Further, the report stated that against the total collected funds of Rs. 144.91 crore, the Government transferred Rs. 111.47 crore only to designated authority (National Securities Depository Limited- NSDL) and did not transfer Rs. 33.44 crore to NSDL for further investment as per the provision of the scheme.
It said that there was a “short transfer” of Rs. 62.01 crore (Rs. 33.44 crore not transferred + Rs. 28.57 crore short contribution) to the NSDL and the current liability stands deferred to future year.
The State Government created interest liability on the amount not transferred to NSDL, incorrectly used the funds that belonged to its employees and created uncertainty in respect of benefits due to the employees affected/avoidable financial liability to the Government in the future, leading to possible failure of the scheme itself, the CAG report stated.
Cost escalation of Rs 86.31 cr for 6 incomplete projects
The Comptroller and Auditor General (CAG) of India has reported that the State had six numbers of incomplete projects aged more than 5 years or more under 5 departments resulting in cost escalation by Rs 86.31 crore than the estimated cost as of March 2019.
The projects are – Construction of Link Roads to Mineral Deposit area with estimated cost of completion at Rs 26.54 crore was revised to Rs 53.95 crore while escalation cost was Rs 27.41 crore.
Construction of Shopping Complex and Parking Plaza at Forest Colony, Dimapur with estimated cost of completion at Rs 18.56 crore was revised to Rs 43.28 crore while escalation cost was Rs 24.72 crore.
Upgradation of Mon-Namtola road Phase-II (42.25 km) with estimated cost of completion at Rs 28.17 crore was revised to Rs 47.74 crore while escalation cost was Rs 19.57 crore.
Construction of Pukhungri-Avankhu-Layshi road with estimated cost of completion at Rs 10.42 crore was revised to Rs 23.39 crore while escalation cost was Rs 12.97 crore.
Development of Playground at Pfutsero with estimated cost of completion at Rs 3.50 crore was revised to Rs 5 crore while escalation cost was Rs 1.50 crore.
Grants & loans to State PSUs unaccounted for years
The Comptroller and Auditor General (CAG) of India has revealed that as of March 2019 due to non-preparation or finalization of accounts of 2018-19 by five State Public Sector Undertakings (PSUs) the details of receipt and utilization of grants or loans from the State Government could not be disclosed.
The 5 PSUs are Nagaland Industrial Development Corporation (NIDC) Ltd. Dimapur, Nagaland Industrial Raw Materials & Supply Corporation (NIRMSC) Ltd Dimapur, Nagaland Handloom & Handicrafts Development Corporation (NHHDC) Ltd Dimapur, Nagaland Hotels (NH) Ltd Dimapur and Nagaland State Mineral Development Corporation (NSMDC) Ltd Kohima.
In its report, the CAG said financial statements of companies for every financial year are to be finalized within six months from the end of the relevant financial year, i.e. by September end in accordance with the provisions of the Companies Act, 2013.
Arrears in accounts in respect of working State Public Sector Undertakings (SPSUs) as on March 31, 2019 are: NHHDC Ltd Dimapur for 9 years as last certified was 2009-10; Nagaland Hotels Ltd – four years with last certified period being 2014-15; NIRMSC – four years with last certified period being 2014-15; NSMDC – two years with last certified period being 2016-17 and NIDC – one year with last certified period being 2017-18. (Page News Service)