TIRUVANANTHAPURAM : The state exchequer has suffered a loss of Rs 5.60 crore due to inadmissible expenses and misutilisation of government funds by the Kochi Biennale Foundation (KBF), an audit report by the Accountant General has revealed. The preliminary audit observations of the C&AG team in its first audit of the KBF, while pointing out various lapses, has recommended the government should take urgent action to recover inadmissible expenditure of Rs 1.10 crore from the KBF. The report is now before the government.
NON-ADHERENCE to provisions of the trust deed and disbursement of grant before ensuring fulfilment of preconditions have been pointed out in the report. Urgent action was recommended to recover the inadmissible expenditure from the KBF, as per the provisions of the Kerala Financial Code. Inadmissible expenditure was detected in various dealings including renovation of the Durbar Hall Art Gallery, cultural and student exchange promotion programme and expenses incurred in securing the venue. Submission of incorrect utilisation certificate and the government’s failure to recover `78.18 lakh too found mention in the report.
The foundation apparently misled the government by claiming expenditure that was already included in an earlier claim statement. Expenses claimed also included even a few that were withdrawn in the previous settlement, it added. The audit found the foundation’s reply “the vouchers and accounts of the KBF were scrutinised by the committee, and only after that the additional financial assistance was sanctioned,” untenable. The audit further said expenses to the tune of Rs 4.50 crore do not comply with principles of financial propriety.
These include those claimed for Biennale declaration event, establishment expenditure, equipment for artists, consultancy fee, media and public relation and travelling. To quote from the report, “Payment made to an event management firm to get services including permissions from tourism department lacks prudence, and considering the fact that the KBF has enough resources to plan and execute activities in connection with the Biennale, the government may review the admissibility of the expenses incurred in respect of its consultancy fee.”
The report also pointed certain anomalies in connection with the bills submitted. “Expenses incurred using public money should have been utilised transparently and prudently. In the absence of government guidelines for the utilisation of grant, and proper documents substantiating the prudence of the above claim, audit could not ensure that the expenses were incurred for the bonafide objectives of the purpose of the government assistance,” it said. Responding to Express, Tourism and Cooperation Minister Kadakampally Surendran said that the matter has not come to his attention and he will look into the report soon.