KOTTAYAM: With the government planning a vigilance inquiry into the allegations of fund misappropriation in Kottayam municipality, the local self-government department has decided to check whether similar irregularities exist in other municipalities in the state.
LSGD director S Sambasiva Rao has issued an order assigning a special audit team to conduct inspection in 21 Grade-I municipalities across the state. The audit teams, led by internal vigilance officers, are scheduled to conduct inspections from February 20 to 28, following which, they are required to submit reports within 15 days.
“Previously, municipalities operated as independent entities, separate from the panchayat department. Fraudulent activities within the Kottayam municipality were exposed following the merger of these two departments, and the establishment of a directorate.
By extending its investigation statewide, the authorities aim to determine if similar fraudulent practices have been employed in other municipalities, potentially involving the misappropriation of significant funds,” said CPM state committee member K Anil Kumar.
Meanwhile, Kottayam municipal authorities denied any fund misappropriation, citing it as a clerical mistake. According to council members, the issue arose due to lack of proper record-keeping of cheques and drafts. However, the government dismissed the claim and formed a state-level team of officials, including technical experts, led by the senior finance officer to conduct a detailed inquiry.
When this inquiry also revealed serious irregularities, the LSGD director decided to carry out inspections in other municipalities.
Meanwhile, the LDF views the move as their first victory against fraudulent activities in the Kottayam municipality. Anil Kumar added that the UDF has been constantly trying to hide the details of the fraud and trivialise it.
The fund misappropriation at Kottyam municipality came to light following an inquiry conducted by the Municipal Directorate Vigilance under the LSGD.
It revealed that an amount of Rs 211 crore was missing from the municipality’s bank accounts. The report stated that the cheques received at the front office of the municipality were not credited in the bank accounts.
Quick action
The audit teams, led by internal vigilance officers, are scheduled to conduct inspections from February 20 to 28
The teams are required to submit reports within 15 days
Move comes after state-level team found serious irregularities in Kottayam municipality