ONGOLE: The Prakasam district administration has surrendered Mission for Elimination of Poverty in Municipal Areas (MEPMA) Project Director (PD) Srihari to the government, following an inquiry into alleged corruption and misuse of Self-Help Group (SHG) loan funds.
Bapatla district MEPMA PD Satyapal has been directed to look after Prakasam district MEPMA activities in an in-charge capacity.
The action follows a report submitted recently by an inquiry committee headed by Prakasam Joint Collector R Gopala Krishna.
The committee probed allegations of corruption and diversion of SHG women’s loan amounts by creating bogus and duplicate SHGs under MEPMA, allegedly with the support of certain employees, bankers, and field-level Community Organisers (COs) and Resource Persons (RPs). District Collector P Raja Babu said the district administration has reported the matter to senior MEPMA officials and sought deployment of an inquiry team to investigate the allegations and identify those responsible.
Srihari assumed charge as Prakasam MEPMA PD in February this year. Multiple complaints surfaced regarding the siphoning of SHG loan amounts by creating fake SHGs. Officials said around 120 bogus or fake SHGs were created, through which fraudsters allegedly availed large loan amounts.
It was alleged that some MEPMA officers and staff, in collusion with bankers and field-level COs and RPs, formed a nexus and diverted loans several crores of rupees in the name of fictitious SHGs. Based on the Joint Collector-led committee’s findings, authorities are preparing to initiate disciplinary action against around 10 to 15 staff involved in it.