The Hindu : Report detects lapses in utilising Plan funds

Online edition of India's National Newspaper
Sunday, Jan 25, 2004

Kerala

Kerala

Report detects lapses in utilising Plan funds

By N.J. Nair

THIRUVNANTHAPURAM, JAN. 24. Serious lapses have been detected in the planning and execution of projects, especially public works, under the People's Plan Campaign in the State.

The local bodies institutions have advanced funds for works that have proved to be a non-starter.

According to the Local Fund Audit report submitted to the Government on March 31, 2003, the funds allotted for public welfare have not reached the beneficiaries due to lack of efficient monitoring and follow-up by the elected representatives as well as officials concerned.

Huge amounts were expended on mostly unproductive schemes and hence have not been fruitful.

As per the details provided to the auditors by 642 grama panchayats, 96 block panchayats, 28 municipalities, 10 district panchayats and nine municipalities and five city Corporations which have concurrent audit, the local bodies institutions were provided with Rs. 27,34,52,43,195 between 1997 and 2002. After spending Rs. 21,91,12,46,141, the civic bodies have left Rs. 5,43,39,97,054 idle.

The local bodies institutions had deposited huge sums in Government and quasi-Government institutions for public works but they have not commenced so far. The Kerala State Electricity Board (KSEB) and the Kerala Water Authority (KWA) are yet to start a number of works for which funds have been remitted in advance.

The KSEB has got deposits for 9,315 works. As many as 3,689 works were yet to start. The KWA has to complete more than 300 of the 1850 works given by the local bodies institutions. The report says that the KSEB has not maintained the data about the utilisation of the Rs. 170 crores deposited as beneficiaries' contribution.

After taking advance, the local bodies institutions had not started public works to the tune of Rs. 6,83,35,375 till March 31, 2002. As many as 514 grama panchayats had given advances to the tune of Rs. 3,92,08,501 and 71 block panchayats Rs. 93,45,544.

Seven district panchayats had advanced Rs. 55,17,530 for works which never took off. But for sanctioning funds, there was no monitoring or follow-up. Improper maintenance of data regarding the works taken up and funds expended has been pointed out as a major handicap.

The elected representatives and others concerned cannot escape the onus of wasting public funds by indiscreetly giving advances to those who wield clout and collective might, the report says. These funds were mostly given to the conveners of beneficiary committees. The authorities concerned have not taken any effort either to start the work or make alternate arrangements.

The reports suggests to realise the money given as advances with 18 per cent interest for six years from the persons concerned for failing to start and complete the works on a time-bound manner.

Incomplete projects come to about three-fold than those that have become a non-starter. Only about 10 per cent of the funds has been used in the proper manner. While sanctioning funds to the grass root level, the authorities concerned should have exercised control and ensured that it is used productively, the report says.

During 1997-98, about 90 per cent of the Panchayati Raj institutions mainly grama panchayats, had spent Rs.1 lakh from their own fund for buying photostat machines as per the directives of the Panchayat Deputy Directors.

But till 2001-2002, they had not got the machines and had again spent crores for taking xerox copies. Had the authorities, who had directed to buy the machine, taken the initiative to ensure that the panchayats were getting it on time, the funds could have been utilised for some productive purposes, the report says.

The report has urged the Government to take steps to supply the machines to avoid recurring expense on this score.

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