Saturday, April 21, 2018

Misappropriation of Rs. 66.41 lakhs in PDS commodity by officials of Choudwar Municipality

Misappropriation of Rs. 66.41 lakhs in sale proceeds of PDS commodity by officials of Choudwar Municipality during 2014-16, exposed by CAG
Dear friends
 Earlier, use of RTI has exposed many scams and irregularities   in implementation of various Govt. schemes and programme in the state.  But CAG Audit has started exposing how Corruption and misappropriation of public fund has become of order of the day in the State Government. Extract of CAG expose about Misappropriation of Rs. 66.41 lakhs in sale proceeds of PDS commodity by officials of Choudwar Municipality during 2014-16 is presented below.

As per Rule 25 of the Odisha Municipal Accounting Rule 2012, the collection offices and collection centres shall record the particulars of each receipt in the collection register on a daily basis.  The amount collected during the day shall be accounted based on summary statements, through a cash receipt voucher or bank receipt voucher.

Choudwar Municipality had distributed wheat, rice and kerosene oil under Public Distribution Centre (PDS)   to ration card holders through different sale centres.  Wheat and rice are procured from District Civil Supply Corporation, cuttack and kerosene from agents appointed by Civil Supply Department.  Municipal employees in charge of sale centres received the commodities from department godown. The sale proceeds had to be deposited with the cashier of the municipality.  The rate of distribution of PDS wheat was Rs. 7.00 per kg up to November 2015 and Rs. 1.00 per kg from December 2015.  Similarly, the Municipality distributed the kerosene oil at Rs. 14.11 to Rs. 14.43 per litre.

Scrutiny of PDS Register of the Municipality (November 2016) showed that there was no separate cash book for PDS transactions prior to 2015-16.  Test check of stock/issue register of wheat for the period 2014-16 was done along with deposit registers on sale proceeds. It was noticed that there was a closing stock of 230.02 qtls  and 957.89 qtls of wheat as on 31 March 2014 with Sri Ruturaj Muduli, peon, and Sri P.K.Mansingh, Zamadar respectively. They had received 3,658.50 qtls and 6,475.73 qtls of wheat respectively during April 2014 to March 2016. Sri Muduli  had deposited  the sale proceeds  of 926.28 quintals of wheat worth  Rs. 6.50 lakh. The sale proceeds of remaining quantity of wheat of 6.087.07 qtls amounting to Rs.44.70 lakh were not deposited by Sri Muduli and Sri Mansingh They had also not shown it as closing stock.

Similarly, stock/issue register of kerosene oil for the period 2014-16 and the related deposit registers on sale proceeds was test-checked in audit.  It showed that there was closing stock of kerosene oil of 5,699 ltrs. and 10,247 ltrs with Sri Muduli and Sri Mansingh respectively as on 31.3.2014.  Sri Muduli and Sri Mansingh were issued with 1, 20,696 ltrs. and 3,56,298 ltrs. of lerosene oil  respectively  during 2014-16.  However  they had deposited Rs. 48.21 lakh as sale proceeds of 3, 39,582 ltrs. of kerosene with the cashier. The sale proceeds of remaining 1, 53,358 ltrs. of kerosene  amounting  to Rs.21.71 lakh had not been deposited  by Sri Muduli  and Sri Mansingh. The officials were required to deposit Rs.98.00 lakh as the total sale proceeds of wheat and kerosene oil. Against this, they had deposited Rs. 31.59 lakhs only with the cashier. The balance amount of Rs.66.41 lakh retained by them was treated as misappropriation of Government money. 

It was also noticed that  the provision of  Orissa Municipal  Accounting  Rules  regarding  daily  accounting  of all collections  were not followed.  There were discrepancies  in issue  and stock register which were  not monitored  on a regular basis.  Such failure of  internal  control mechanism  paved the way  for the officials  to misappropriate  sale proceeds of commodities.  The Executive Officer, Choudwar Municipality  instituted  ( march 2016)  departmental proceedings  against  both the officials for misappropriating  PDS sale proceeds  of Rs. 22.12 lakh . the findings  in the proceedings  were accepted  by the convicted officials  and they deposited  Rs. 15.45 lakh.  However, CAG  audit noticed  ( November 2016)  that  the calculation  made by accountant  of the Municipality  in March 2016  of the sum misappropriated  was incorrect. The actiual  amount misappropriated  was Rs. 66.41 lakh . hence Rs.50.96 lakh  was yet to be recovered  from these two officials  by Choudwar Municipality. Though CAG  had drawn attention of secretary, Housing and Urban Development, Govt. of Odisha, no response has been received  so far. No action has been  taken  since last one year to recover  Rs. 50. 96 lakh  from these two corrupt officials.
In this case inspite of vigilance investigation  and interrogation on above 2 employee but case is not taking any momentum since then .



Date – 20.04.18
  

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