Fund Fudging: Social Department Seeks Report

This follows the Express expose on orphanages cornering government grants

KOZHIKODE ( KERALA ): The Social Justice Department (SJD) has asked the Secretary, Orphanage Control Board (OCB), to submit a detailed report following the Express report on Wednesday, which exposed the fraudulent way in which orphanage managements in Kozhikode earned government grant-in-aid.

The report was sought by SJD Director V N Jithendran. “This is the first time that such an issue has been raised before the Department. I have directed the member secretary of the OCB to conduct an enquiry and submit a report at the earliest,” he said. Express had reported, with documents, that orphanages were hiding records of foreign contributions to obtain government grant.

Kerala Local Fund Audit Department Director T J Varghese said: “Henceforth, all the district LFA offices will be directed to consider the FC-6 return statements, which are submitted by the orphanage managements to the Ministry of Home Affairs, while auditing the annual accounts. Based on the report, LFA will inspect the previous accounts of the orphanages and necessary action will be taken to recover the excess grant-in-aid which they have claimed earlier.”

Varghese said the revelations show that orphanage managements are keeping more than one accounts for functioning. “As per rules, keeping separate accounts is illegal. Strict directions will be given to LFA officers to inspect all accounts including the foreign contributions while auditing,” he said.

Ibrahim Master, chairman, Board of Control For the Orphanages and Other Charitable Homes, Kerala, was aghast. “This is really news for me. The state government’s grant-in-aid should not be given to organisations who receive aid from foreign sources. If there exists such a malpractice, the grant-in-aid given to those orphanages should be recovered,” he said, adding that a detailed statement will be given after discussing the issue among members of the Board.

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