CAG report finds lapses in several Puducherry gvt departments

The CAG has found lapses in the functioning of part of several departments, including Adi Dravidar Welfare and Drug Control besides the industrial promotion body PIPDIC.
In its report related to year ended March 2016 tabled in the union territory assembly today, Comptroller and Auditor General (CAG) said as many as 57 ineligible beneficiaries were alloted dwelling units under the housing scheme for Scheduled Caste and economically backward classes by the Adi Dravidar Welfare Department.
The department "failed to finalise the beneficiaries list in time and the selection of beneficiaries was not handled in a professional manner leading to non-allotment of houses to eligible beneficiaries."

The report noted that houses were allotted to 57 ineligible beneficiaries despite the fact that Welfare Inspectors had reported that the applicants had already owned house and availed subsidy under housing schemes.
On the Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC), the CAG said the corporation did not effectively pursue its mandate and did not have any plan to focus on the growth of its business.
PIPDIC, whose mandate is to provide financial assistance to foster industrial development, had "failed to fix the achievable targets for sanction of loans."

"In the absence of any plan, the company's lending activity started shrinking from Rs 9.98 crore in 2011-2012 to Rs 5.41 crore in 2015-2016. This was despite the fact that the amount parked by PIPDIC in short term deposit had increased from Rs 16.15 crore in March 2013 to Rs 28.03 crore in March 2016.

"Thus, the company could not play a pro-active role in fostering industrial development and was able to process only loan applications as and when they were received from applicants," the CAG report said.
On the Department of DrugControl, the report said it had not maintained any database for renewal of licences and was not aware of number of units existing at any given point of time.
It also stated that there were delays in issue of new licences and renewal of licenses despite the department's commitment to the Public Accounts committee that the system was fully computerised and the prescribed time schedule was strictly adhered to.

There was thus a critical need for the union territory government to review and streamline its functioning to ensure strict compliance with the provisions of the Drugs and Cosmetics Act 1940.
The CAG also said blood banks were allowed to function without valid licences for more than eight years.