CAG asked to probe misuse of MNGREGA funds

The Centre has asked the Comptroller and Auditor-General (CAG) to probe misuse of funds under the Mahatma Gandhi National Rural Employment Guaran-tee Scheme and other central flagship schemes by panchayati raj institutions, Union Rural Development Minister Jairam Ramesh said on Saturday.

CAG will compile its report by November 2012 and this would be laid tabled before Parliament.

There have been reports of misuse of funds under the central flagship schemes and irregularities against gram panchayat mukhiyas, which must be stemmed, he told reporters.

Ramesh said it was the responsibility of the state governments to prevent corruption and misuse of funds under the programmes. "The Centre has its hands tied if it wants to directly probe such allegations," he said. “The Centre orders CBI probe only when the state government recommends it. But if the Centre intervenes directly, the states describe it as attack on the federal principles.”

Referring to Chief Minister Nitish Kumar's observation that gram panchayat mukhiyas have purchased luxury vehicles by swindling funds of the central flagship schemes, Ramesh said if he was convinced that irregularities were taking place in the execution of central flagship schemes then it was his duty to probe such cases.

He slammed the Bihar and Uttar Pradesh governments for the tardy implementation of Nirmal Gram scheme and said though the Centre has proposed constructing toilets for all households in all villages over the next 10 years, it would take at least 20 years for the two states to attain the target.

Ramesh said the Centre has increased assistance to villagers for construction of toilets under Nirmal Gram scheme from Rs 3500 to Rs 10,000.

He also criticised Bihar officials for non-utilization of central funds and pointed out that the state agencies have spent only 37 per cent funds for construction of rural roads as against 75 per cent by the central agencies. The central agencies, Ramesh said, will not take up the remaining rural road projects in the state and the same has to be completed by the state agencies by December this year. Ramesh arrived on a two-day visit to Bihar to inspect implementation of the central flagship schemes during the day and will review the progress of central flagship schemes with the chief minister tomorrow, official sources said.