KOCHI: The Local Funds Audit Committee has found rampant violation of rules and instances of malpractice in the administration of Greater Cochin Development Authority (GCDA)during the year 2012-2013. The report filed by the committee pin points the anomalies. ‘City Express’ has a copy of the report.
In the report the committee has pulled up GCDA for a series of irregularities and has expressed its strong disapproval and recommended action against erring officers. The committee assessed the statements of GCDA from May 1, 2013, starting from November 8, 2013. The consolidated report was issued a few months ago.
Nil or Shadow Records
GCDA, which has permanent deposits in various banks to the tune of Rs 106 crore, maintains no proper records of its income and expenditure sources, pointed out the report.
The audit committee notes that when it asked for rent income-expense details, GCDA replied that it had stored all the details in a single computer that got damaged. Data recovery from it is impossible and so the details cannot be provided, wrote GCDA to the committee. auditors then went through a plethora of files in the GCDA office to unearth the details. Interestingly, notes the report, some of the rent details in the files were marked with pencils.
How can a public institution show such negligence regarding its rental details, which is its major source of income, asks the report. The committee raised concerns about possibility of fund fudge and corruption due to such sloppy form of maintaining records.
Plunder by Private Parties
GCDA has made serious lapse in collecting rents, notes the report. For example, Bismi Electronics in J N stadium alone has to pay up to Rs 10,83,407 in rent during the audit period. The only action taken by the authority so far was sending a notice and that only once, notes the committee. What’s more, it has renewed Bismi’s rent agreement in 2013 notwithstanding the arrears.
Even public institutions too are behind in paying rent. Kochi corporation has to pay more than Rs 35 lakh. The report notes that such instances has gifted GCDA a staggering Rs 3.16 crore in arrears.
Shady Transactions
The original worth of land in possession of GCDA is a whopping Rs 214 crore. The audit exposes that significant portion of it has been lost to private players over the years.
Much of the lost portions happen to be in priced real estate locations like Panamppilly Nagar. The report also slams GCDA for violation of rules while giving away land in prime locations to private persons. In the case of assets also, GCDA records are shady. The committee has also slammed GCDA for not recording the new constructions in its registers.
Inflated Budget
The audit has also found that budget statements of GCDA are inflated ones. It isn’t consistent with actual income and spending, says the report. For instance, the estimated expenditure noted is Rs 136.88 crore but the actual expenditure Rs Rs 30.31 crore. In the revenue side, it is Rs 41 crore and Rs 33 crore respectively.
No vision in ‘Vision 2030’
GCDA has not done a cost-benefit analysis on ‘Vision 2030’, one of its flagship project, finds the audit. It noted that the project comes with huge fiscal burdens and the financial health of the authority will take a beating if implemented.
For instance, one of the proposed ‘Vision 2030’ project, the international exhibition and convention center at J N Stadium will burn Rs 102 crore from GCDA coffers. Considering that it has only Rs 106 crore in hand, how will GCDA provide for the pension and salaries of its employees if it withdraws money from its deposits for this project.
GCDA came out with a series of big ticket projects recently that flopped miserably. One and half years ago, the windmill it had erected at Marine Drive collapsed just hours after inauguration.
The laser show project at Rajendra Maidan, started off with much hype but it also hasn’t cut any audience yet.