CAG finds discrepancies, irregularities, wasteful expenditure in CAPD

Fayaz Bukhari
SRINAGAR, June 27: The Comptroller and Auditor General (CAG) report has found glaring financial discrepancies, irregularities and wasteful expenditure in Consumer Affairs Public Distribution (CAPD) department during the previous National Conference led Government in the State.
The report that was tabled in the Assembly and Council here today, recommended a slew of measures to improve the functioning of the CAPD like reviewing the list of BPL beneficiaries, updating of accounts and strengthening of Public Distribution System (PDS) to extend benefits to targeted population.
The CAG report said 26 per cent of the population, as per 2011 census,  in the State remained out of Targeted Public Distribution System (TPDS) coverage and the shortfall in allocation vis-a-vis requirement ranged between 31 and 36 per cent in respect of wheat and seven and 32 per cent in respect of rice under various schemes.
The CAG report criticizes the Government for undue delay in the implementation of National Food Security Act (NFSA). It says that the department has sought six months extension from the Centre which lapsed in October 2014 but failed to implement it till March 2015.
The report says that the CAPD failed to review the list of BPL families leading to issue of food grains valuing Rs 17.89 crore to ineligible families while depriving eligible BPL families.
“Further 1.09 lakh metric tons additional adhoc food grains allocated by Government of India for ‘not covered BPL families’ had been distributed among existing BPL card holders during 2010-12,” the report said.
It added that despite recommendations (in November 2009) of the Public Accounts Committee, accounts continued to remain in arrears since 1973-74 and 1974-75 in respect of the Jammu and Kashmir divisions, respectively.
The department is to prepare proforma accounts immediately after the close of each financial year but not later than June 1 for certification by Audit before September 30 each year. “Due to non-preparation of accounts, the financial position and working results of the department could not be ascertained in audit,” the report said adding the department stated that the accounts were in arrears since 1973-74 and it would be futile to prepare proforma accounts from any year in the middle without authentic opening balances available. “It was further stated that the matter being policy decision, the directive in this regard from the government was awaited,” the report said.
The CAG said scrutiny of the records showed that the department had not revised the rate of wheat bran during last seven years though market rates of wheat bran had increased three fold and reached to Rs 2200 per quintal in May 2014.
Audit analysis showed that the department had sold 2.06 lakh quintals of wheat bran to the millers from April 2013 to March 2015, sustaining a loss of Rs 15.45 crore on sale at old rates (Rs 750).
The report said the department released Rs 2932.64 crore to Food Corporation of India (for 2010-15) but the department had not carried out any reconciliation with the Corporation to ascertain the extent of actual advance payment made and quantum of food grains lifted.”Continuation of advance payments in absence of periodic reconciliation to ascertain actual account balances is fraught with risk of fraud and embezzlement remaining undetected,” it said.
The report said against total allocation of 37.80 lakh metric tons of food grains during 2010-15, the department had lifted 39.14 lakh MTs of food grains under all categories.
It said that the distribution of kerosene oil to LPG consumers resulted in an avoidable burden of subsidy of Rs 459.24 crore on Government exchequer.
“The expenditure of Rs 1.50 crore incurred on construction of laboratories turned unfruitful besides Rs 5.61 crore, released under end-to-end computerization of PDS scheme, remained unutilized”, said the report.
“The department failed to provide food security to all the identified persons of the State under ‘Annapurna Scheme’ during the period 2010-14 even as quantity ranging between 123 metric tons and 501.44 MTs remained unutilized, leading to cut in the allocation by the centre to the extent the quantity of food grains (rice) remained unutilized”, the CAG report revealed. “Thus identified beneficiaries ranging between 23 to 85 per cent were deprived of the benefit of free ration under the scheme,” it said.
The report also highlighted the shortage of staff in the department and said nearly 24 per cent posts were vacant affecting the working of the department. “As on March 31, 2015, against the sanctioned strength of 2073 storekeepers or salesmen, only 1583 officials were in place to man 2233 Government sale depots,” it said.

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