The Rural Development and Panchayat Raj Department has come under fire from the Controller and Auditor General (CAG) for discrepancies in implementation of the MLA Constituency Development Scheme (MLACDS).
In its latest performance audit report, the CAG says unutilised funds released during 2002-04 were retained though no work was pending, and Rs.30.75 crore was diverted to an unrelated scheme. It also found that execution of works prohibited under the scheme had resulted in ineligible expenditure of Rs.23.80 crore.
A serious violation that came up in audit was the diversion of funds (Rs.30 crore) from the MLA funds to a new scheme, Namadhu Gramam, which is fully funded by the government. The report said such dovetailing of MLA funds to another government scheme was “irregular and resulted in diversion of funds.”
The CAG also found that 364 prohibited works such as construction of office/residential buildings for Central/State government departments, bus shelters or roadside drains were taken up during 2002-06. This resulted in expenditure of Rs.15.33 crore
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