Settlement of pending accounts
*Boards reconstituted but meetings yet to be convened
Mohinder Verma
JAMMU, Mar 2: Several Public Sector Undertakings, Autonomous Bodies, Societies and Companies have failed to meet the timeline fixed by the Government for settlement of their pending accounts despite being aware of the fact that this vital exercise is imperative to ensure financial discipline. Moreover, reconstituted Boards have yet not started convening meetings even after clear directives in this regard from the Finance Department.
Official sources told EXCELSIOR that in the Committee of Secretaries meeting held on July 8, 2019, the Financial Commissioner, Finance Department had observed that in the Public Sector Undertakings, the meetings are not held on time and the accounts of previous years are not being settled leading to lack of financial discipline.
Accordingly, the Chief Secretary BVR Subrahmanyam had asked the concerned Administrative Secretaries to take required steps in this regard as early as possible as financial discipline cannot be held hostage by the slackness of the concerned officers.
Thereafter, on January 6, 2020, the Financial Commissioner, Finance Department again raised the issue in the Committee of Secretaries meetings and emphasized upon constitution of Board of Directors of Companies, Statutory Bodies, Societies and Corporations by the concerned Administrative Departments.
He further asked the Administrative Secretaries to convene Annual General Meetings (AGMs) for updation of accounts and compilation of assets and liabilities of Companies, Statutory Bodies, Societies and Corporations.
Again on January 14, 2020, the Chief Secretary asked the concerned Administrative Departments to submit the proposal for reconstitution of Board of Directors of such Companies, Statutory Bodies, Societies and Corporations as per the Articles of Association.
Finally, on February 4, 2020, the Financial Commissioner, Finance Department while drawing the attention of the Administrative Secretaries towards the circular dated January 29, 2020, fixed ending February deadline for completion of pending accounts by all the PSUs, Autonomous Bodies and Societies. Moreover, he laid emphasis on reconstitution of Boards and holding of their first meeting before February 15, 2020.
However, majority of the Public Sector Undertakings, Autonomous Bodies and Societies have failed to meet the timeline fixed for settlement of pending accounts despite being aware of the fact that this vital exercise is imperative to ensure financial discipline and promote transparency.
“The Government of Union Territory of Jammu and Kashmir wants to make accounts of these bodies up-to-the-date so that at the end of every financial year true picture about the financial viability of these bodies is drawn by the Finance Department”, sources said.
They further said, “in the absence of settled accounts and their audit it is difficult rather impossible to ascertain whether the investments and expenditure incurred have been properly accounted for and whether the purpose for which the amount was invested had been achieved or not”.
“Though almost all the Boards have been reconstituted by the Government yet majority of them have not convened the maiden meetings within the time-frame fixed by the Financial Commis-sioner, Finance Department”, sources said while disclosing that as per the explicit directives issued by the Finance Department the first meetings of the reconstituted Boards were to be convened before February 15, 2020.
What to talk of meeting this timeline, several Boards were reconstituted after February 15, 2020. Among these Boards/ Corporations are J&K Indus-trial Development Corporation, Handicrafts (S&E) Corpora-tion, Handloom Development Corporation, Industries Limited etc, J&K Women Development Corporation, Advisory Board for the Welfare and Development of Scheduled Castes, Advisory Board for Development of Pahari Speaking People, Advisory Board for Development of Other Backward Classes and J&K Social Welfare Board.
The other Corporations, which are required to adhere to the directives of the Government, are Jammu and Kashmir Power Development Corporation, Road Transport Corporation and Tourism Development Corporation etc.
The delay in convening meetings of reconstituted Boards is notwithstanding the fact that vital decisions are taken at this platform.
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