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Key Points

A recent CAG report has exposed serious financial mismanagement in Odisha's welfare programmes. The audit found hundreds of crores were funnelled through engineers' personal bank accounts for questionable transactions. Key water supply projects remain incomplete and dysfunctional despite massive expenditure. The findings point to a systemic failure in the execution of development schemes meant for tribal and urban communities.

Key Points: CAG Flags Massive Financial Irregularities in Odisha Welfare Schemes

  • CAG audit found Rs 148.75 crore routed via engineers' accounts for personal expenses
  • ITDA Paralakhemundi spent over five times sanctioned amount on instruments
  • Rs 519 crore remained unspent despite available funds for tribal development
  • AMRUT and BASUDHA water schemes failed to supply clean water after Rs 2808 crore spending
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CAG report flags financial irregularities in Odisha Welfare and Development programmes

A CAG report reveals Rs 148 crore routed through engineers' personal accounts, unspent funds, and failed water projects in Odisha's key development programmes.

"Engineers... had personal bank accounts through which Rs 148.75 crore of project funds were routed. - CAG Report"

Bhubaneswar, Sep 24

The Comptroller and Auditor General of India (CAG) has unearthed massive financial irregularities, suspected misappropriation, and shocking lapses in the execution of key welfare and development programmes in Odisha.

According to a CAG report presented before the Odisha Assembly on Wednesday, a compliance audit of 11 sample Integrated Tribal Development Agencies (ITDAs) out of the total 22 ITDAs revealed glaring misuse of public funds during the financial years from 2018-19 to 2022- 23.

“Engineers entrusted with execution of works had personal bank accounts through which Rs 148.75 crore of project funds were routed. Audit detected personal transactions like ATM withdrawals, UPI transfers, mobile recharges, and even insurance premium payments from these accounts, raising strong suspicion of misappropriation,” observed the CAG.

The financial watchdog further found during scrutiny that Rs 3.38 crore excess expenditure has been made without any vouchers, and payments of Rs 3.23 crore without invoices.

“Shockingly, invoices worth 22.78 crore carried irregularities such as missing dates, duplicate numbers, or belonging to unregistered entities. In a brazen violation, ITDA Paralakhemundi procured musical instruments and costumes worth Rs 3.74 crore against an approved outlay of just Rs 73.60 lakh—an excess of more than five times the sanctioned amount,” pointed out the CAG.

The audit report also pointed out towards poor spending efficacy of the ITDAs who could manage to spend only Rs 1,190.44 crore out of the total available funds of Rs 1,709.47 crore, leaving an unspent balance of Rs 519.03 crore (30 per cent) during the period 2018-23.

This apart, the CAG also found glaring irregularities in the implementation of flagship programmes such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Buxi Jagabandhu Assured Drinking Water to all Habitation (BASUDHA), Rashtriya Uchchatar Shiksha Abhiyan (RUSA).

“The audit of Odisha’s urban water supply schemes under AMRUT and BASUDHA revealed that despite spending Rs 2,808.27 crore, many projects remain incomplete and large swathes of the state continue to face drinking water woes,” asserted the CAG.

It claimed that water supplied in several towns of Odisha fell well below the mandated 135 litres per person per day, with testing showing 16 water quality parameters -- including E-coli and turbidity -- exceeding permissible limits.

“A Rs 9.79 crore renovated water treatment plant in Burla was found supplying turbid water after new systems mixed with sludge from an old clarifier. Adding to the mess, solar-powered water projects worth Rs 1.74 crore installed in Berhampur in 2020 were found defunct within three years due to lack of maintenance,” observed CAG.

- IANS

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Reader Comments

R
Rohit L
Musical instruments worth ₹3.74 crore when only ₹73 lakh was approved? This shows complete lack of accountability. Meanwhile, people in tribal areas don't have basic amenities. The CAG report should lead to immediate action against those responsible.
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Sarah B
As someone working in development sector, this is heartbreaking. ₹519 crore unspent while people suffer? The water quality findings are particularly alarming - E.coli contamination is unacceptable in 2024. Hope this report leads to systemic reforms.
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Arun Y
While the findings are serious, we should also acknowledge that CAG audits help improve governance. This is how democracy works - through accountability mechanisms. The state government must now take corrective measures and ensure proper utilization of welfare funds.
K
Kavitha C
Solar water projects defunct within 3 years? This is why we need better maintenance contracts and local community involvement. Throwing money at problems without proper planning and monitoring is useless. 🤦‍♀️
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Michael C
The scale of irregularities is staggering. From duplicate invoices to missing vouchers - this indicates a complete breakdown of financial controls. Hope the authorities take strong action and recover the misappropriated funds.
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Nikhil C
This is why we need more transparency in government spending. Real-time tracking

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