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North MCD suffered losses and diverted money up to Rs. 3,229 cr., says audit report
New Delhi:
New Delhi:
The North Delhi Municipal Corporation suffered losses and diverted money meant for parking infrastructure development to pay salaries, says an internal audit report for the financial year 2016-17.
The report, authored by the corporation’s chief auditor Vinita Mishra and tabled at its Standing Committee meeting on Wednesday, says the irregularities amounted to about Rs 3,299 crore.
Commissioner of the north corporation, Varsha Joshi, said, “We will study this report in detail before indicting anyone.” The corporation’s standing committee chairperson, Jai Prakash, said, “Response will be sought from each department on the alleged lapses and financial loss, and action taken against officers on the basis of that.”
The report excludes the north corporation’s ‘Rani Jhansi Grade Separator’ project, which saw several missed deadlines and criticism of the BJP-led corporation by the Aam Aadmi Party during the municipal elections of 2017. A separate audit report filed for this project in December 2018 had stated that it took an “additional 18 years to complete, resulting in cost overrun of Rs 500 crore.”
The Rani Jhansi flyover began around 1995 and was inaugurated after 23 years in October 2018 with revised cost going up to Rs 724.2 crore from the original estimate of Rs 177.7 crore.
Mishra’s report tabled on Wednesday said funds released by the pension cell of the corporation to banks from financial year 1998 to 2017 were not checked with beneficiaries. This amounted to Rs 2338.71 crore Further, funds were diverted from an escrow account meant for parking infrastructure development to pay salaries due to fund crunch. This amounted to Rs. 700.93 crore
The report says property tax of Rs192.24 crore from all zones of the corporation was yet to be collected and outstanding dues of licence fees add up to Rs 15.26 crore.
Dues in permission fee for cell phone towers of Rs15.21 crore that was yet to be recovered and a “wasteful expenditure on construction of a school building” of Rs 38.08 lakh has been noted in the report.
The report says there are “deficiencies in the working of the vigilance department.” “The number of pending RDAs (regular departmental action for various charges, including bribery against officers) shows an increasing trend. Out of 319 cases of RDAs, chargesheets were issued in 270 cases and investigation officers appointed only in 218,” says the report.
“Delay in finalisation of cases is not only against the law of natural justice but also…affects the efficiency of the incumbent officer against whom enquiry is pending,” the report says.
