MP govt admits to Rs 100-cr irregularity

The state government in Assembly today admitted that irregularities of Rs 100 crore were committed by government staff in Central government sponsored debt waiver and debt relief scheme 2008.

The government also admitted that a probe has found 2,080 employees guilty but only two of them have been terminated from their jobs. However, the government remained tight-lipped over legal actions against the guilty. The secretary of the state government had demanded a report on the issue last year.

Replying to a question raised by main opposition Congress members Kalpana Parulekar, Yadvendra Singh, Arif Aqeel and others during a call attention motion, state cooperative minister Gauri Shankar Bisen admitted and informed the house, “As many as 2,080 employees were involved in these irregularities. Of them, 1,069 have been served notices and two of them have been terminated in the report sent to the governor’s secretary.”

To which the opposition members questioned why the state government has terminated only two of the 2,089 employess found guilty. They alleged that it could not be possible without a direct or indirect involvement of the state chief minister.

In his reply Bisen clarified, “Nabard demanded an inquiry in eighteen primary cooperative societies in Harda district. The probe results reveal that employees committed irregularities of Rs 9763.09 lakh in debt waiver and Rs 391.23 lakh in debt waiver scheme. The Nabard granted a fund of Rs 1584.69 crore to the state cooperative banks under the scheme. But no case of embezzlement came to the government’s notice, barring 34 cases in a cooperative society of Hoshangabad district, where employees created fake accounts of beneficiaries and transferred the funds. The state government initiated an action and FIRs have been lodged against the prima facie guilty employees and officers. The government has also initiated actions against those who have fraudulently secured benefit of the scheme and money will be recovered from them soon. An amount of Rs 36 crore has been recovered so far.”

The minister however ruled out dissolving the board of directors of state cooperative banks. As many as 12 general managers of various cooperative banks are facing disciplinary actions, Bisen said and assured that a probe will be completed by November this year.

The members of opposition raised an objection and said when a probe had already been completed why does the state government need another probe. They asked why the guilty officials and employees are spared from stern actions.

The minister however remained tight lipped.