Ministry probing firms providing training to ex-defence personnel: Report

Investigations were initiated after an internal finance unit alleged 'massive financial irregularity' in the scheme, the report added

Around 250 firms that impart resettlement training to retired defence personnel are being investigated by a committee set up by the Ministry of Defence (MoD), reported The Indian Express on Monday. 

According to the report, the investigations were initiated after an "internal finance unit alleged 'massive financial irregularity' in the scheme costing around Rs 20 crore every year". The report added that MoD data shows that Rs 70.36 crore was spent on the scheme between 2011-2014 and Rs 53 crore had been earmarked for 2015-2017.

Formed last month to investigate the allegations made by the MoD’s Integrated Finance division, the committee, in its site inspections, found that some institutes in New Delhi and Ghaziabad "could not be located or did not have the required infrastructure or affiliations", the newspaper said.  

The report added that an earlier inspection conducted by authorities from the MoD found that several such institutes have not made any official information, including contact information, public.

Speaking to the Indian Express, Prabhu Dayal Meena, secretary (ex-servicemen welfare), MoD, said: “When we received complaints from Defence Finance, we set up a committee. Spot inspection of training institutes is on and it is a little premature to give a final picture.”

The training programme, the report said, consists of courses ranging from "modular management, fire protection to dairy farming and vehicle repair".

The report cited figures saying that 82,270 personnel have received such training in the last three years. 

The alleged irregularity, the report added, was brought to light by Principal Integrated Financial Advisor Savitur Prasad. In a letter from March this year, Prasad flagged the matter and said that the training fund was being used without sanction from the office of the Integrated Financial Advisor.

The letter, according to the report, said: “The training aspect does not come under the category of ‘immediate operational need’ and as such require IFA concurrence. The conduct and participation of training and workshops have been linked with the ‘austerity measures’ prescribed by the Ministry of Finance and inherent powers are not to be extended to the Director General (Resettlement).” 

The report added that Prasad had also flagged the alleged misuse of selection guidelines, which state that only training institutes run or approved by the Centre, state governments, public sector units, etc, should be used.

Prasad described the process as a “system failure at various stage” and called for an investigation by the Central Vigilance Commission, the report said. 

Additionally, the report said that Prasad's letter was followed by Additional Controller General of Defence Accounts, Atul Kumar Saxena, writing a letter, in April this year, saying: “If training assignments were awarded on nomination basis, the due diligence carried out by the DGR (Directorate General of Resettlement) and its subordinate offices for ascertaining the credentials of the training institute may please be furnished.”