CAG flags misuse of ₹148.75 cr funds in 11 Odisha tribal development bodies

The Comptroller and Auditor General of India (CAG) suspects misappropriation of government funds of Rs 148.75 crore due to divergence of funds from bank accounts operated by engineers in 11 Integrated Tribal Development Agencies (ITDAs) in Odisha.

The CAG conducted a compliance audit of 11 of 22 ITDAs in the state covering the period from financial year 2018-19 to 2022-23 and mentioned its findings in its compliance audit report (civil), which was laid before the Odisha assembly on Wednesday.

The ITDAs were set up in the state during 1979-80 to 2022-23 for the implementation of various welfare schemes towards integrated socio-economic development of the tribal population residing in the Scheduled Areas.

 

In its audit report, the CAG said government funds of Rs 621.79 crore had been transferred to 71 bank accounts of 11 ITDAs for departmentally executed works during 2018-23.

"Details of 67 out of 71 bank accounts whose statements contained irrelevant transactions of Rs 148.75 crore and thus, amounted to suspected misappropriation of government funds," the auditor said.

The JEs/ AEs had conducted personal transactions of Rs 148.75 crore from these bank accounts, like withdrawal of cash through ATMs, payments through cheques, payments through POS, insurance premium payments, payments towards mobile phone recharges and UPI transactions, it said.

"These were indicative of suspected misappropriation of public money by the JEs/ AEs concerned," it pointed out.

The audit also found that none of the sampled ITDAs had ever prepared annual accounts, though required under the provisions of the Societies Registration Act, 1860.

Due to non-preparation of accounts, matters pertaining to loss or wasteful expenditure, as well as inefficiencies in expenditure, could not be addressed, it said.

The agencies had not followed government instructions and provisions of Odisha Public Works Department (OPWD) Code in the execution of infrastructural works, the CAG report said.

"The departmental works had been executed by contractors who had not been selected through an open and transparent tender process," it said.

The CAG recommended that the SC, ST Development Department issue directions to ITDAs to immediately stop the irregular practice of operation of bank accounts by JEs/ AEs for departmental execution of works and follow the OPWD Code.

The department should review all bank transactions done by JEs/AEs for departmental works across all the ITDAs and fix responsibility on the officials who have indulged in suspected misappropriation of government funds, it recommended.