CHENNAI: Public sector entities in the state are now under the scanner for granting promotions without government approval, as well as making excess payment to employees, by grant of payscale without due approval from the government. Sources indicated that the Finance Department has warned the public sector units as well as statutory boards that it is turning a blind eye to wrongful or excess payments made to the employees of public sector undertakings or statutory boards. “Since such cases are not detected in time, it is difficult to recover dues as these employees would have retired by then,” the Finance Department has observed.
It is learnt that organisations such as the Chennai Metropolitan Development Authority are also under the scanner for recruitment and postings without the approval of the government. Several audit queries have been raised over recruitment of staff wherein qualifications and age have been relaxed by officials violating the service norms.
Interestingly, such relaxation of norms by the administrative wing of CMDA has resulted in the organisation facing 30 to 40 cases with allegation of misrepresentation and favouritism.Even a CMDA audit report has raised objections to the appointment of planning assistant Grade-1 officials beyond the age limit prescribed in service rules as it was not ratified by the government. This was done in violation of the Madras High Court order in 2007.
It is learnt that the Finance Department has put forth four guidelines to curb such instances. It has urged all chief executives of state public sector undertakings to strengthen internal financial controls and ensure pay of the employees drawing higher pay due to erroneous pay fixation is regulated immediately. “Corrective actions will have be taken immediately on cases pertaining to excess payments made on account of wrong pay fixation, grant of scale without due approvals, promotions without following due procedures or in excess of entitlements,” according to officials sources.
It is learnt that the government is planning to initiate departmental or criminal action against erring officials. It has also warned public sector entities and statutory bodies that they should not waive recovery without the approval of the board of directors and the government.
Recommendations
Strengthen internal financial control system
Conduct post-audit by in-house staff as well as internal auditors in the area of human resources management
Verify correctness of pay fixation orders, settlement of huge arrears to employees and terminal benefits to retiring employees etc.