CAG detects filmsy procurement under MNREGA in Nagaland dist

The Comptroller and Auditor General (CAG) has detected non-existing procurement involving a sum of Rs 5.49 crore under Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), Department of Rural Development Nagaland.
Briefing media-persons here today on CAG Report for the year ended March 31, 2014 which was tabled in the ongoing Assembly session, Accountant General (Audit) Nagaland, A P Chophy said the Block Development Officer (BDO)-cum-Programme Officer, MNREGA, Phomching under Longleng district misutilised Rs 5.49 crore meant for procurement of stone boulder and chips by producing fabricated records showing non-existent stone industries.
As per the financing pattern prescribed by Union Government under MNREGA, he said Centre bears the cost of wages for unskilled manual labour and also 75 per cent of the cost of material, wages for skilled and semi-skilled workers while the state government has to bear 25 per cent for the same.

The BDO Phomching is said to have received an amount of Rs 16.23 crore during 2011-12 and 2012-13 for implementation of the scheme out of which Rs 6.15 crore was for material component and the remaining amount of Rs 10.08 crore was for wage component, he said.
Examination of records of the BDO in July 2013 revealed that out of the material component of Rs 6.15 crore, the BDO utilised Rs 5.49 crore for procurement of stone boulders and chips through 13 Village Development Boards (VDBs) from three Stone Crusher Industries located in Phomching and Tapi villages, the AG claimed.

The AG said, in reply the department of rural development in April 2014 stated that the funds were transferred to respective VDB account as per scheme guidelines and all procurements were done by them as per the local arrangements.