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Watchdog uncovers funds misuse, avoidable losses

Rajesh Nair

CAG report finds irregularities in several government departments

PONDICHERRY: The Comptroller and Auditor General (CAG) report for the year up to March 31 last year has found irregularities in several government departments that caused them huge losses. The report has also highlighted the high level of poverty in the Yanam region.

The Education Department's failure to comply with rules and to scrutinise the rates quoted by the Pondicherry Textiles Corporation Limited for distribution of free uniforms resulted in an avoidable expenditure of Rs. 26.28 lakhs. It also incurred a loss of Rs. 1.39 crore in rice purchase from the open market.

The report noticed deficiencies in the release of scholarships to Scheduled Caste students by the Adi-Dravidar Welfare Department. The release of scholarships led to widespread irregularities, including misuse of funds. "In the light of the deficiencies in the release of funds to the heads of schools and the lack of proper watch over its disbursement, the extent to which the benefits reached the students remain doubtful."

As for the Electricity Department, the report said it had failed to avail itself of rebates offered by power suppliers. There were deficiencies in billing and revenue collection. It incurred an extra expenditure of Rs. 2.58 crores, as it did not avail itself of rebate. Revenue dues reached Rs. 50.67 crores at the end of March 2004, the report said.

In the Yanam region, the lack of any scheme for agriculture and fisheries, the main sources of income, had left a majority of the people poor. Sixty-two per cent of the ration cardholders in 2001 belonged to the below poverty level families; it increased to 64 per cent in 2004. The number of unemployed also grew.

The report pointed to deficiencies in the implementation of programmes by the Health and Fisheries Departments. The Health Department distributed financial aid for treatment to 51 ineligible persons and incurred a loss of Rs. 44.07 lakhs. Likewise the Fisheries Department paid Rs 1.97 crores to ineligible fishermen under the savings-cum-relief scheme.

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