Urban News

  • Increase font size
  • Default font size
  • Decrease font size
Accounts / Audit

CAG smells rat in BBMP projects

Print PDF

The Deccan Herald  07.10.2010

CAG smells rat in BBMP projects

 

 

 

 

A Comptroller and Auditor General (CAG) report has established the Opposition’s allegations about multi-crore irregularities in the Bruhat Bangalore Mahanagara Palike (BBMP) in the name of awarding work codes.

Irregularities to the tune of crores of rupees have surfaced in the work code orders with the CAG stating in his latest report to the government that the BBMP paid at least Rs 4,000 crore in excess for the work codes between 2008 and 2010.

The work code system was introduced to prevent repetition of work and speedy completion of the projects. But the work code system has become a mechanism for financial irregularities, according to the CAG report.

Projects worth Rs 1,141 crores were sanctioned in 2008-09. But work codes exceeding the budget by almost Rs 1,500 crores were given, reveals the report. Similarly in 2009-10 works worth Rs 2,438 crores were sanctioned but again an additional Rs 2,500 crore worth work codes were given for various projects.

Consent missing

The report also brings to the fore another astonishing fact that the then commissioners were not informed about the various projects for which the work codes were given. The CAG report pointed out that the work codes were cleared by getting consent from the chief audit officer instead of the Commissioner, which amounts to dereliction of duty.
Methods of irregularities

What has surprised even the CAG is that the details of all the work undertaken through work codes are missing. There is no information about the name of the ward, sub-division, zone in the work codes, which raises the question whether the work was actually executed.

For a particular nature of work, a definite work code is given after which the project cost should not exceed the fixed amount but that could not happen in the last two-three years. Also other work should not be tagged with a particular work code which again was not followed and many other works were introduced in a single work code.

The CAG report also found that the tender notices were published in newspapers outside the city, that too in lesser known dailies whereas it should have been published in reputed dailies in the City. This was done to benefit certain contractors, the report points out.

Most of the work codes were for the works near Metro Rail project, like asphalting road, constructing drains and construction of footpaths.

This has been done intentionally to use it as a pretext against the substandard works, only to prove that the works were carried out effectively but the Metro Rail Project damaged the civic amenities, the CAG report stated.

The CAG has now sought details of works in the year 2009-10 as well. The Commissioner has asked all the 84 executive engineers to submit their reports pertaining to these works. He has asked them to give work code number, title of the works, works undertaken, name of the ward, expenditure, details of the Earnest Money Deposit (EMD) and the date and the name of the bank when the EMD was deposited.

Last Updated on Thursday, 07 October 2010 06:24
 

Corporation asked to look into audit objections

Print PDF

The Hindu  29.09.2010

Corporation asked to look into audit objections

Staff Reporter

VISAKHAPATNAM: Commissioner and Director of Municipal Administration (CDMA) Prem Chand has asked the Greater Visakhapatnam Municipal Corporation to look into “audit objections of serious nature relating to short levy of property tax not properly carried out to systems”, resulting in huge loss of revenue to the corporation.

In his DO letter, the CDMA referred to the report of the District Audit Officer and the letter of the Director of State Audit and stated that the large-scale discrepancy in documentation of property tax during 2003-04 and 2004-05 was to the extent of Rs.3.06 crores and Rs.4.04 crores respectively and it aggregated to Rs.7.11 crores.

The discrepancy occurred in feeding into the system from manual records and, as most of it is recurring in nature, it results in huge loss to the GVMC, he observed, and asked Municipal Commissioner V.N. Vishnu to furnish detailed remarks along with names of persons responsible for the lapse for taking further action.

The audit report found fault with the process of documentation stating that while the increased tax amount was recorded manually it was not communicated to the computer section resulting in loss. The report says tax dues had not been collected since 1993. Also, if revision petitions or appeals were accepted, the demand should have been scaled down. But in the absence of such information, dues were listed (in the audit report).

Sources in the GVMC say the Rs.4.04 crore for 2004-05 was cumulative and was inclusive of the Rs.3.06 crore for the previous year.

Also, computerisation was taken up in 2000 but the report mentions dues since 1993. However, they admit that there was scope for manipulation at the time of computerising.

Last Updated on Wednesday, 29 September 2010 11:39
 

CAG to audit ULBs

Print PDF

The Deccan Herald  17.09.2010

CAG to audit ULBs

Bangalore, Sept 16, DHNS:

Accounts of city corporations, including Bruhat Bangalore Mahanagara Palike (BBMP) and other urban local bodies in the State have finally come under the purview of the Comptroller and Auditor General of India (CAG).

The move takes significance as huge inflow of grants go to urban local bodies under the Jawaraharlal Nehru National Urban Renewal Mission (JNNURM) and under devolution of funds from Union and State Finance Commissions.

But it took the State government five years to issue the relevant orders for supervision of audit arrangement of urban local bodies by CAG.

The Centre had directed the State government way back in 2005 to issue orders for entrusting maintenance and accounts of urban local bodies to the CAG. Though the Controller, State Accounts Department is responsible for audit of urban local bodies in the State, the Union Finance Ministry felt that audit by CAG would help in strengthening accountability and transparency.

An order for technical collaboration with the CAG for audit was issued by the State government during May 2005, but it was kept under abeyance following certain issues raised by the Department of Law, official sources told Deccan Herald.

However, nothing moved till the Principal Auditor General in September last year once again wrote to the State government to consider entrusting the audit accounts of all urban bodies to the CAG. The State government, has now finally conceded to the request.

Last Updated on Friday, 17 September 2010 10:54
 


Page 7 of 12