BHUBANESWAR : Computerisation of the Primary Agriculture Cooperative Society (PACS) to integrate the short term credit structure into the core banking network proved to be a big failure even after six years of launching of the programme and an expenditure of Rs 51.36 crore.
With PACS still maintaining manual ledger system without shifting to management information system (MIS) database, instances of misappropriation during disbursement of crop loan have come to notice.
Japa PACS in Jagatsinghpur district renewed crop loan of nine farmers in August 2018. As per the loan statement (Form 17), the PACS had sanctioned Rs 3,54,750 towards renewal of loan. However, the secretary of Japa PACS submitted the loan recovery statement for the previous crop loan of these nine farmers to DCCB, Ersamma branch for only Rs 25,750. The secretary of the society misappropriated `3.29 lakh by manipulating the system.
In another case, the secretary of Dahunda PACS in Balasore district withdrew Rs 4.67 crore sanctioned to the loanee farmers during 2011 to 2015 by presenting fake withdrawal slips instead of withdrawing the loan amounts through cheques. The entire amount was reported as misappropriated by the secretary in connivance with manager of DCCB, Bhogarai branch.
These two cases were part of the compliance audit report on Economic Sector of the Comptroller and Auditor General (CAG) for year ending March 2019 tabled in the Odisha Legislative Assembly recently.
Such irregularities were reported from many other PACS and this was possible due to non-computerisation of the PACS. The Opposition raked up financial irregularities in cooperative banks in the Budget session of the Assembly. The State government sanctioned Rs 48.77 crore to OSCB in 2013-14 and 2014-15 for computerisation of 2,528 PACS by March 2015. The apex cooperative bank also spent Rs 47.23 crore for procurement of hardware, software and engagement of data entry operator.
On verification of four out of nine sample districts revealed that computer system has been supplied to 1,069 out of 1,116 PACS. Though data migration has been completed in 1,025 PACS, online transaction was not possible due to poor internet connectivity. “Test-check of 27 PACS by the audit revealed the land documents of the Kisan Credit Card (KCC) holders, who had been sanctioned loans, were not verified as envisaged. So, the genuineness of the land details recorded in the register and veracity of farmers availing crop loans could not be ensured, which is a persisting irregularity,” the report said. It was seen in these PACS that 38.84 per cent of loans were shown as new loans disbursed to farmers without any actual disbursement.
Heads of expenditure
Rs 48.77 crore sanctioned for computerisation of 2,528 PACS
Rs 47.23 crore spent for procurement of hardware and software
Data migration completed in 1,025 PACS
38.84 pc of loans were shown as new loans