Large number of Bihar PSUs not preparing accounts: CAG official

The Comptroller and Auditor General of India (CAG) has taken exception to the Bihar government continuing to provide funds to a large number of state public sector undertakings ( PSUs) despite the fact that many of them have been non-functional and have not been preparing accounts for decades

The Comptroller and Auditor General of India (CAG) has taken exception to the Bihar government continuing to provide funds to a large number of state public sector undertakings ( PSUs) despite the fact that many of them have been non-functional and have not been preparing accounts for decades.

HT Image

“Around 30 state PSUs have their accounts pending for last many years. In the absence of accounts, there is always scope of financial irregularities. One does not know how the funds are being spent,” said Rakesh Mohan, additional deputy CAG (eastern region), who was on a visit to Patna during which he met deputy chief minister Tarkishore Prasad and top officials.

Mohan said the state government gave these PSUs ₹30, 481 crore in loans and equity as in 2018-19, which was a wrong practice.

“Some PSUs have not given accounts for the last 43 years. It is really surprising. If there are no accounts, there is no accountability,” he said.

Mohan said there were 36 working and 37 non-working PSUs while eight PSUs were making profit in the state.

He said the implementation of the comprehensive financial management system( CFMS) by the state fianancé department was a good step which would facilitate financial discipline.