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CAG pulls up Nagaland Power dept for funds diversion

The dept is responsible for large scale diversion of funds, non-revision of issue rates and issue of supply orders at the request of the suppliers.

india Updated: Nov 04, 2005 22:14 IST
Newsfile

The Comptroller and Auditor General of India (CAG) has pulled up Nagaland's Power Department for large scale of diversion of funds during the year ending March 31, 2004.

According to the report, the department is responsible for large scale diversion of funds, non-revision of issue rates, keeping idle stock, issue of supply orders at the request of the suppliers, reimbursement of excise duty to suppliers without production of documentary evidence, non-recovery of penalty from defaulting suppliers, and of offering undue financial benefits to suppliers, among others.

According to the report, the department procured 15 vehicles, including 13 Bolero Invaders and two Ambassadors between March and August 2004 at a total cost of Rs 76.45 lakh by diverting Rs 8.32 lakh from deposit work, Rs 54.63 lakh from rural electrification and Rs 13.5 lakh from the system improvement scheme without the approval of the Finance Department.

Similarly, of the Rs 2.67 crore sanctioned by the Government in October 2002 for procurement of store material under the Central Government's Accelerated Power Development Reform Programme, Rs 12.13 lakh was diverted in December 2002 by the stores division towards payment of salary of staff belonging to another division, the report pointed out.

These are only a few of the instances cited in the report.

A random verification of supply orders placed with local suppliers by the chief engineer for procurement of steel poles revealed that the rates approved by the purchase board were much higher than the rates of the manufacturers quoted in their invoices issued to the local suppliers, the report noted.

First Published: Nov 04, 2005 22:05 IST