E-Paper
CAG findings: HSIIDC to be blamed for inept handling of training programme, excess payment
The Comptroller and Auditor General (CAG) has blamed the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for inept handling of a training programme and making an excess payment of ₹2
The Comptroller and Auditor General (CAG) has blamed the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for inept handling of a training programme and making an excess payment of ₹2.96 crore to the training provider.
The corporation provides employment skills to residents of identified villages where land had been acquired by it for setting up industrial estates.
The auditors, in their report, said in August 2017, the corporation had signed a memorandum of understanding (MoU) with the Leather Sector Skill Council (LSSC) for providing training to 15,000 candidates without considering the National Skill Development Corporation’s (NSDC) study report which suggested annual requirement of only 1,000-1,200 candidates (5,608 in five years) in the leather and footwear sector.
In contrast to the projected demand, the HSIIDC granted approval for training of 476 batches consisting of 13,670 candidates from November 2017 to February 2018 before approval of monitoring and tracking guidelines. In all 523 batches of 15,003 candidates were approved by the corporation, the audit report said.
“The HSIIDC paid ₹1.01 crore towards goods and services tax (GST) on the first instalment of the training cost though services provided by the LSSC approved by the NSDC were exempted from tax. Since the LSSC had not fulfilled the MoU condition with regard to employment of trained candidates, it was eligible for 80% payment in respect of only 4,227 eligible candidates which worked out to be ₹3.62 crore. This resulted in excess payment of ₹2.96 crore to the LSSC,” the report further said.
The CAG said the training programme was ran without conducting due diligence study and monitoring of desired yield and impacted the envisaged benefit of generating gainful employment to the trainees even after incurring expenditure of ₹3.62 crore. Besides, there was an excess payment of ₹2.96 crore to the LSSC.
An exercise carried out in December 2018 by the project management consultant showed 10,776 of thr 15,003 candidates were ineligible for various reasons including trainees not confirmed, ineligible due to age, aadhaar number duplication, trainees not found during inspection, and candidates in excess of the approved number in the job role. Thus, only 4,227 candidates were found eligible and in respect of whom 80% payment could be released.
The HSIIDC, in its response, said due diligence of records was done as per the common norms and legal action has been initiated against the LSSC to recover the excess amount. During the exit conference in August 2021, the corporation said the recovery notice has been issued and they are in process of lodging an FIR against the LSSC.
“The reply is not acceptable as the corporation had signed an MoU with the LSSC without considering the training requirements as indicated in the NSDC report and project management consultant was not involved in carrying out due diligence, though their scope of work provided for the same, which resulted in non-achievement of envisaged benefits,” the CAG observed.
The auditors recommended that the HSIIDC may fix responsibility for the lapses and due diligence be done for such training in the future.
