Fraud-related cases piling up: CAG

BHUBANESWAR: A large number of cases of misappropriation and defalcation is pending in different departments of the State Government. In some of the cases, the inquiry is pending for more than

Published: 16th January 2012 05:47 AM  |   Last Updated: 16th May 2012 06:15 PM   |  A+A-

BHUBANESWAR: A large number of cases of misappropriation and defalcation is pending in different departments of the State Government. In some of the cases, the inquiry is pending for more than 25 years.

  According to the latest report of the Comptroller and General (CAG), 1,769 cases of inquiry, involving Government funds of Rs 17.11 crore, are pending. The CAG has advised the State Government to expedite departmental inquiries and finalise all fraud/misappropriation cases by drawing up a time-bound programme.

 The CAG has also advised the State Government to strengthen internal controls in the executing agencies to utilise fund within the stipulated time to avoid delay in submission of utilisation certificates.

 The CAG has said in its latest report that the State Government should ensure utilisation certificates is furnished only after actual utilisation of the earmarked funds and that funds were not being diverted for other purposes or  misutilised.

 The report observed that there is a huge pendency in receipt of utilisation certificates relating to grants-in-aid paid to various autonomous bodies, panchayati raj institutions and urban local bodies. This was due to release of grants by the Government as a matter of routine without watching for timely receipt of utilisation certificates earlier provided in the general financial rules and sanction orders for release of grants, it said, adding that submission of inaccurate utilisation  certificates without actual expenditure of funds were also noticed.

 The CAG has asked different administrative departments to provide timely information to accountant general about grants and loans advanced to different bodies and authorities. It said this should be followed to avoid the possibility of any fraud, misappropriation or non-transparent transaction remaining suppressed and uncovered.

 The report said several administrative departments did not furnish to the principal accountant general information on the list of bodies/authorities to whom grants and loans were paid and reason behind the assistance. Besides, the position of utilisation of such assistance during 2010-11, as required under the provisions of the CAG’s audit and accounts regulation, 2007 were also not provided.

 It observed that contrary to the provisions of financial rules, controlling officers did not submit detailed countersigned contingent bills for Rs 50.63 crore to the accountant general.

 The CAG disapproved of the practice of funds remaining unspent in many inoperative personal deposit (PD) accounts for years together without being credited back to the Government accounts during the year-end. Transfer of budgetary allocation from the consolidated fund to PD account in the public account at the end of the financial year to avoid lapses adversely affected the transparency of the State’s accounts, it said.  

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