An internal defence audit by the government’s defence accounts wing has claimed losses of over Rs 100 crore in spendings by six army commanders between 2009 and 2011, but the force has contested the loss in procurements and insisted that no rules have been violated.
The audit report also purportedly says communication equipment with Chinese components were acquired without following due procedure. However, Army sources said these were procured after thorough inspection of various aspects but added that the procurement “is under arbitration as the vendor was not able to reveal the Original equipment Manufacturer (OEM)”.
Taking a strong view of the financial mismanagement under its departments, defence minister A.K. Antony has decided to impose strict checks and balances on expenditure made under the special financial powers.
Defence sources said many of the acquisition cases mentioned in the audit report pertained to the Udhampur-based Northern Command while some pertained to the Kolkata-based Eastern Command.
Incidentally, Army chief Gen. Bikram Singh was heading the Eastern Command before becoming Chief of Army Staff (COAS) earlier this year.