CAG raps Assam for pilferage of funds

The test checks of Assam government’s development schemes by Comptroller and Auditor General of India have exposed rampant corruption and misappropriation of the government fund in the state’s rural development, education, power and health departments of Assam.
The CAG report on Internal Control and Risk Management said that Assam health and family welfare department sanctioned `3.88 crores for procurement of long-lasting insecticide treated bed nets at the rate of `397 each against the award of 12th finance commission.
The director health services placed the order in February 2008 to M/S Health Circle Private Limited Guwahati for supplying 97,853 nets.
The supplier was asked supply the nets having shelf-life of one year, although bed net with shelf-life of four years were available at the same price. The firm supplied the net in two lots in March and May 2009.
The CAG while carrying out test check of the records of health services in July 2009 found that 68,000 bed nets supplied to the departments had shelf-life of only 10 months. More than 21,000 bed nets were distributed in February 2009 when their shelf-life had already expired.
In reply the health department stated that period of effectiveness is calculated from date of its use and not the date of manufacture. The CAG however pointed out, “The reply of the government is self-contradictory as the stock register shows that date of expiry of shelf-life of net was one year (January 2009).” If health department has been indicted for procuring medicated net of expiry date, the education department was caught for committing a fraud of scholarship money of `4.40 lakhs at Dhemaji and `1.33 lakhs of Sarva Shiksha Abhiyan.
Moreover the Panchayat and Rural Development Department committed a fraud of `2.1 crores by giving a supply order in the name of a fictitious firm, the CAG report pointed out adding that Public Work Department did fictitious payment of `2.27 crores to the contractors. Even deliberate delay in payment of outstanding dues incurred loses of more than `4 crores to the power department.

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