ELA detects financial irregularities in ULBs, PRIs
Arun Kumar

PATNA: Examiner of local accounts (ELA), Bihar, D Jaishankar has
highlighted major irregularities in revenue management in urban local
bodies
(ULBs) and Panchayati Raj Institutions (PRIs). The report was released
by principal accountant general Arun Kumar Singh here on Wednesday.

Jaishankar, in his presentation threw light on the salient points of
both ULBs and PRIs audit reports. He pointed out that in 39 ULBs, the
tax collectors and tax `darogas', cashiers, accountants and the other
tax collecting staff either failed to deposit or short deposited a sum
to the tune of Rs 80.70 lakh collected as tax, fees and other
miscellaneous revenues.

The report found that collection money to the tune of Rs 79.24 lakh
was irregularly retained by the cashiers of Begusarai, Bettiah and
Jamalpur Nagar Parishads.

Similarly, in the case of PRIs, the report found that assistants of
Zila Parishad -- Motihari and Purnia -- collected Rs 33.07 lakh and Rs
11.31 lakh, but deposited only Rs 25.12 and Rs 5.24 lakh respectively.
The remaining amount was not recovered till June 2007 and December
2007, said the report.

The Patna Municipal Corporation (PMC) sustained loss to the tune of Rs
1.62 crore due to under assessment of holding tax whereas due to
under-valuation of annual value of holdings, the Biharsharif Municipal
Corporation (BMC) suffered revenue loss worth Rs 50.80 lakh, noted the
report.

The report detected a discrepancy to the tune of Rs 9.79 crore in the
accounts of 33 panchayat samitis it had audited. Rs 90.17 lakh was
diverted by Bhagalpur and Bhojpur Zila Parishads during 2003-04 to
2006-07 of 10th, 11th, and 12th finance commission and Sampoorna
Gramin Rojgar Yojna (SGRY) grants for other purposes while Rs 41.21
lakh was diverted between January and March 2004 by Runnisaidpur
Panchayat Samiti in Sitamarhi district. Non-realization and loss of
revenue to the tune of Rs 46.66 and Rs 28.41 lakh respectively was
detected in PRIs on account of settlement of `sairiats', noted the ELA
report.

The report pointed out that due to non-reconciliation of cash book
balances with treasury/bank balances, the unreconciled difference
stood to the tune of Rs 7.59 crore in 32 ULBs. Rs 16.48 crore of
specific grants were diverted by 17 ULBs towards payment of salaries
and allowances to its staffs. Bettiah Nagar Parishad made a payment of
salaries and allowances to staff to the tune of Rs 14.04 lakh
irregularly due to retention of its staff in service beyond the date
of their superannuation. Gaya Municipal Corporation irregularly paid
Rs 72.56 lakh as interim relief to its employees.

ELA report found major irregularities in implementation of schemes in
37 ULBs where works worth Rs 10.04 crore remained incomplete.

The report noted that at Narkatiaganj, Runnisaidpur, Sono and Masaurhi
panchayat samitis payments were made for a number of works which were
either abandoned or postponed, but the advances made were not
recovered. Engagement of the same labourers were found time and again
in the same period at Ujiarpur and Parihar panchayat samitis and Patna
and Katihar Zila Parishads, says the report.
Source: TNN 8 October 2009