NEW DELHI: The Comptroller and Auditor General (CAG) has faulted the Ministry of External Affairs (MEA) for delay in the acquisition and construction of properties abroad as well as in India. "Audit noticed delays in acquisition of land, appointment of consultants, preparation of design concept, award of construction work and its execution."

Consequently, the CAG in its "performance audit" report said the Ministry incurred substantial expenditure on rentals and had to absorb cost overruns, besides blocking capital investments for long periods. "[The] MEA could not prevent unauthorised expenditure from being incurred by missions/posts [abroad] on leased and Government-owned properties and hiring properties exceeding rental ceilings," the report stressed.

According to the CAG, the Ministry urgently needed to improve property management by giving a final shape to proposals for purchase and construction of properties in a timely manner and executing projects according to targeted timeframes.

Land acquisition

Turning to specifics, the CAG pointed out that the MEA could not commence construction in 14 stations abroad due to delay in acquisition of land, appointment of consultants, finalising design briefs and obtaining the approval of local authorities. This resulted in recurring expenditure of Rs. 11.8 crore per annum on rentals and blocking of Rs. 13.81 crore in capital.

"[The] MEA did not finalise consultants, scope of work, design briefs, preliminary drawings and estimates for re-development/reconstruction of properties at Singapore, Tokyo and Geneva, resulting in expenditure of Rs. 2.38 crore per annum on rentals and blocking of capital of Rs. 6.19 crore."

On the purchase of a plot at Dwarka here at a cost of Rs. 2.8 crore in 1993 to construct a housing complex for officers and Ministry staff, the CAG said Rs. 18.37 crore was spent on construction. "The housing complex became functional only in April 2004. Out of a total 230 flats, only 44 had since been occupied, and 186 were still vacant (October 2004). ... While the quarters remained vacant, the Government continued to pay house rent allowance to the officials unwilling to reside in government accommodation."

Expenditure sanction

The CAG also found fault with the proposals of constructing officers' flats, hostel units and a community centre at Chanakyapuri here.

Though two plots were allotted in 1993, expenditure sanction (Rs. 19.73 crores) came only in September 2004.

"Though the timeframe for completion of the project was 30 months from the date of administrative approval, contracts for execution were yet to be awarded (February 2005). Delay on the part of [the] MEA resulted in [an] increase in the cost of construction by Rs. 2.87 crore, which might increase further at the time of tendering."

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