CAG raps Bihar govt for its financial help to defaulting govt companies

The Comptroller and Auditor General of India (CAG) has rapped the Bihar government for providing financial assistance of Rs. 18,872 crore to defaulting government companies.

The CAG in its report for 2019-20 tabled in the state Assembly on Thursday said the Bihar government provided budgetary support (equity, loans, grants and subsidies) of Rs. 18,872 crore to 18 working state public sector undertakings and 16 non-working public sector undertakings until the financial year 2020, it said.

These PSUs have not finalised their accounts for the last one to 43 years in violation of provisions of the Companies Act/Acts of the respective Statutory Corporations/Public Sector Undertakings, the report mentioned.

The non-working companies include Bihar State Fruits and Vegetables Development Corporation Limited, Bihar State Construction Corporation Limited, Bihar State Forest Development Corporation Limited, Bihar Rajya Matasya Vikas Nigam Limited, and Bihar Hill Area Lift Irrigation Corporation Limited

The CAG further said no rules have been framed by the state government for accounting of labour and other cess.

The cess collected by some departments is lying idle which does not serve the purpose for which it had been levied, it said.

No subhead has been opened by the government for booking the labour cess collected by various departments executing projects involving labour. During the year 2019-20, labour cess amounting to Rs. 89.90 crore was credited, it said.

The Bihar government had implemented the Comprehensive Financial Management System (CFMS) in April 2019 to automate the lifecycle of financial activities and replace the legacy systems.

Despite a repeated request by the Office of the Principal Accountant General for conducting a parallel run for submission of accounts to PAG, the state government decided to go paperless, the CAG said.