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State-owned firms in bad shape: CAG

Special Correspondent

There are as many as 32 non-working government-run companies as on March 31, 2006: CAG

BHUBANESWAR: The Naveen Patnaik Government's tall claims of taking Orissa forward on the path of industrialisation falls flat before the latest report of the Comptroller and Auditor General of India. The State Government has badly failed in managing its own companies.

According to the report that was tabled in the Assembly on Thursday, there were as many as 32 non-working government-run companies in the State as on March 31, 2006. The number of non-working companies was 35 as on March 31, 2002, out of the 68 government companies. The number of non-working companies decreased to 32 out of 62 government companies by March 31 last year. Of the 32 companies, 12 were in the process of being wound up either by court or tribunal order or voluntarily. In respect of 19 companies, either decision to wind up was not taken by the government or the management or petitions for winding up were pending. The winding up petition by one company was dismissed.

Idle wages

The management of Konark Television Limited did not declare the company as closed under the Industrial Disputes Act even after suspension of production in May 1999, which resulted in avoidable liability of Rs. 2.16 crores towards idle wages.

According to the CAG report, non-replacement of Liquidator delayed the winding up of four companies under voluntary liquidation. Despite decision of the government, 14 companies did not file petitions for winding up. Further, delay in liquidation of three out of 14 companies resulted in avoidable expenditure of Rs. 1.17 crores towards idle establishment.

The decisions for winding up and implementation of the decisions for closure of the 32 companies were delayed due to non-clearance of arrears in accounts and delay in disposal of assets.

`Action plan needed'

"Non-existence of the Board of Directors of some of these companies, non-availability of basic records, delay in implementation of voluntary retirement and voluntary separation scheme due to shortage of funds were the other factors responsible for delay in liquidation. Lack of proper planning also contributed to delay in dissolution of the companies," the CAG said in its report.

The CAG recommended that an action plan of non-working companies be prepared and proper monitoring be done to watch the implementation of the plan as delay in this regard results in continued expenditure on idle wages.

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