E-Paper
Assam social welfare department gave undue benefit to food suppliers: CAG
The CAG said the department made purchases at exorbitant rates and gave the benefit of over ₹94 crore to the suppliers in 2019-20
Assam social welfare department made purchases at exorbitant rates and gave undue benefit of over ₹94 crore to suppliers of rice and peas in 2019-20, the Comptroller and Auditor General (CAG) of India has said in its report submitted last week to the state assembly.
The report for the financial year ending March 2020 added the department failed to ensure compliance with National Food Security Act (NFSA) and did not make a provision for nutritional support to children aged 6 to 72 months, pregnant women, and lactating mothers.
The CAG found the market price of rice and white peas per kg was ₹40 and ₹62. It added the total bill including transportation of the rice and peas procured should have been ₹297.70 crore. But the suppliers claimed ₹392.03 crore and the department paid that amount.
The report said thus an undue benefit of ₹94.32 crore was given to the suppliers through payment of ₹392.03 crore for food items estimated to have cost ₹297.70 crore.
The NFSA mandates appropriate free meals to the identified beneficiaries through local anganwadi or rural child care centres. It specifies nutritional standards by providing take-home ration (THR) or nutritious hot-cooked meals (HCM) in accordance with Integrated Child Development Service.
The CAG said the NFSA assures the supply of subsidized rice to the states at ₹3 per kg for supplementary nutrition. It added had rice been obtained through the public distribution system, the actual cost would have been lower by ₹182.87 crore.
The CAG said the social welfare director showed a supply of items such as rice, pulses, puffed rice, peas, suji, sugar, milk powder, and oil under THR for the release of the Centre’s funds. “...the department supplied only rice and white peas, which violated guidelines and didn’t ensure ‘wholesome nutrition’ for beneficiaries,” the report said.
It added the department did not meet nutritional requirements mandated under NFSA for food items with adequate calories, proteins, and micronutrient-fortified foods for children, pregnant women, and lactating mothers.
The CAG noted Assam has one of the highest rates of maternal and child mortality, implying the strong need for nutritional support, which the state has failed to ensure.
In its response to the CAG, the department justified the payments saying suppliers bore all costs for food, transportation, and fuel within the unit cost prescribed per beneficiary daily.
The CAG called the response unacceptable as no other items were supplied, and nor was the department contractually bound to do so as per the supply order. It recommended fixing accountability in a time-bound manner for the undue financial benefit to the supplier and recovery of the excess amount.
