AIACO Nagaland State demand ED for thorough investigation into Comptroller and Auditor General findings

It has come to our information that, a large number of ineligible families are availing benefits of National Food Security Act NFSA 2013 in the State of Nagaland. Government of India had enacted the National Food Security Act NFSA in July 2013 which gives legal entitlement to receive highly subsided food grains. Under the Act, food grains is allocated at the rate of 5 kg per person per month for priority household category at the rate of 35 kg per family per month for AAY families at highly subsidized prices of RS 1, Rs 2 and Rs 3 per kg for multi cereals,. Wheat and rice respectively.

It has been informed that the NFSA Cards are being possessed and obtained rice at government subsidized rate and sold out in an open market. While the genuine beneficiaries receive only 2-3 times a year.

The government must take action and remove ineligible NFSA Cards and the Cards illegally possessed by any individual or official should be made to surrender within a specific deadline time and date given to them and disciplinary action be taken against them under CSS (CAA) rules 1965 to ensure outreach of government relief measures to the under previlegded Nagas.

We also observed irregularities in distribution of tide over rice under NFSA and appeal to strictly supervise the tide over rice quota district-wise allocation to the people.

The distribution of tide over rice allocation is virtually non-existent in the State despite the fact that huge quantity of tide over rice is allocated to the state of Nagaland. “It is an illegal act and punishable under Prevention of Corruption Act 1988.”

On tide over rice allocation, the entitlement of foodgrain per household is supposed to be decided by the respective DCs/SDOs along with the respective District Assistant Director of Supplies (ADS), after taking into consideration the quantity of tide over allocation under NFSA who are left out under National Food Security Act 2013 to ensure that Public Distribution System (PDS) is available to all. However, the Government of Nagaland has already break-up and approved State stockist of tide over food grains in various local and enterprises name for a period of 2 years with effect from 1st April 2019 up to 31st March 2021. Subsequently it was extended till March 2022 without issuing Notice Inviting Tender despite the order for the Stockiest and Handling Agent got expired on 21st March 2021 and also without properly identifying the targeted beneficiaries.

The chief stockiest are few non-Nagas who pay certain percentage to various organization and Government establishment against the tide over allocation and thereafter the food grains are re-packed and sold in the open market at an exorbitant price, which the Government is supposed to make available by little over Rs 400 per 50 kg sack pack.

with effect from April 2019 the tide over rice allocation per month for Mokokchung was 400 MT, Longleng – 200 MT, Wokha – 180 MT, Phek – 200 MT, Kohima – 300 MT, Tuensang – 125 MT, Kohima – 200 MT, Dimapur – 137.72 MT, Kiphire – 220MT, Mon – 100, Peren – 100 MT, Dimapur – 310 MT, Mon – 100 MT, Phek – 100MT, Dimapur – 200 MT, Peren – 100MT, Mon – 100MT, Zunheboto – 300 MT, Tuensang – 100MT, Tuensang – 100MT, Mon100 – MT, Wokha – 200 MT, totaling 3162.72 MT, which it said is over 30 lakhs kg or over 60,000 of 50 kg sack of rice.

It should be fairly and squarely distributed. No one should be deprived and the people of Nagaland must have their due rights under NFSA.

Further the Report contains two reviews on Levy and collection of Motor Vehicles Tax and Working of Co-operation department and 52 paragraphs.

Among the departments involved, School Education tops the chart with two cases involving INR 82.80 crore, followed by Disaster Management also with two cases amounting to INR 74.04 crore; public Works Department (R&B and Mechanical) with four cases involving INR 58.23 crore; Taxes with four cases – INR 33.23 crore; Water Resources, one case – INR 28.60 crore; Planning and Coordination, one case – INR 20.23 crore; Health and Family Welfare, four cases – INR 13.70 crore; Planning and Coordination, one case – INR 20.23 crore; Health and Family Welfare, four cases – INR 13.70 crore; and DC Dimapur, one case – INR 10.63 crore.

The Tourism department has a case amounting to INR 5 crore; Public Health Engineering, one – INR 2.67 crore; Soil and Water Conservation, one – INR 1.81 crore; Industries and Commerce, one case – INR 1.54 crore; Land Records and Survey, one case – INR 1.24 crore; Municipal Affairs had one – INR 1.11 crore; Rural Development, two – INR 0.88 crore; Forest department got one – INR 0.54 crore; other various departments, seven cases – INR 35.29 crore.
Subsequently several civil organisation and concerned citizens had alleged “financial scam” in the implementation of Pradhan Mantri Awas Yojana (PMAY-G) Scheme in the State of Nagaland and demanded an SIT investigation into the matter.
The funds for PMAY-G essentially guaranteeing for “housing for all by 2022” has been totally mis-utilised, which need to urgently address on this matter in the public interest as “no amount was given to the beneficiaries under PMAY-G.”
The the Finance Department had sanctioned and disbursed an amount of Rs 74,73,07,700 for the construction of PMAY-G units, benefiting 21,748 beneficiaries across 11 districts in Nagaland and that the amount was “mis-utilised.”
In this connection, AIACO had appealed the Chief Minister to immediately “institute an special Investigation Team (SIT) within 30 days to uncover the “facts of the financial scam and to nailed the erring officials. However, no action was initiated from the State Government till date. Despite repeated requests has been put forward for a thorough investigation to oversee that the PMAY G scheme are effectively implemented as per Government of India guidelines for the welfare of the rural poor.

During the financial year 2021-22, 61 grants involving INR 81.80 crore were provided to 16 departments for which UCs utilisation certificates (UCs) are due for submission during the year 2022-23.
As on March 2022, there were 149 UCs worth INR 316.34 crore, which were due for submission for periods pertaining up to 2023

Pending UCs violates prescribed financial rules and directives, and reflects poor monitoring mechanism of the state government. Moreover, high pendency of UCs is fraught with risk of misappropriation of funds. The state would also lose out on Central funds for want of UCs not submitted till date.

As per the CAG report  there were 335 Abstract Contingent (AC) bills involving INR 532.83 crore pending for adjustment by submission of Detailed Countersigned Contingent (DCC) bills, as of March 2022.
Out of these, 28 AC bills amounting to INR 22.83 crore pertained to the year 2021-22, while 307 AC bills amounting to INR 510 crore drawn up to 2020-21 were also outstanding as on March 31, 2022. The non-adjustment of AC bills is fraught with the risk of misappropriation and therefore, requires close monitoring by the respective DDOs for ensuring submission of DCC bills.

In regard to department-wise pending AC bills for the years up to 2021-22, Civil Police leads with INR 317.33 crore, followed by Home Department – INR 90.64 crore; Youth Resources and Sports – INR 33.99 crore; Tourism – INR 24.86 crore; and Department of Under Developed Areas – INR 14 crore.

During the period, expenditure of INR 21.415.60 crore under 47 revenue and capital major heads, constituting about 10.32% of total expenditure of INR 13.713.54 crore, was booked under minor head 800-other expenditure.
Similarly, receipts of 283.98 crore under 40 revenue major heads, constituting about 2.31% of the total revenue receipts of 13,451.14 crore were booked under minor heads 800-other receipts under concerned major heads.

Meanwhile, a total of 14,437 workers were registered with the Nagaland Building and Other Construction Workers’ Welfare Board (NBOCWWB) at the end of 2021-22. Out of the total available funds of INR 98.55 crore during the year, the NBOCWWB expended INR 24.22 crore, the CAG added.

There was huge pendency in submission of accounts in respect of autonomous bodies/ other authorities as well as state public sector enterprises, it stated.

The Public Works and Forests divisions were the major units that delayed the rendition of monthly accounts during the year 2021-22, it stated,  adding that delayed rendering of accounts by the account rendering units or authorities distorted the accurate depiction of monthly transactions of the state and impacted effective budgetary management.

The demand comes on the heels of a scathing report by the Comptroller and Auditor General (CAG) of India, which has uncovered a series of misdeeds that have raised serious questions about the utilization of public funds.

The CAG report, part of the comprehensive assessment of various sectors, including Social, Economic, General, and Revenue, for the fiscal year ending March 31, 2022, exposes the Nagaland government’s violation of the Centre’s directives in diverting Superior Kerosene Oil (SKO) worth Rs 19.56 crore to the open market. This misallocation, equivalent to 6113.19 kilo litres (KL), was identified through an exhaustive examination of both Central and State data.

The discrepancy was first noted in the records of the Food & Civil Supplies (F&CS) Directorate Dimapur, revealing a significant shortfall of 525 KL during 2019-21. The Department had reported lifting only 13,752 KL of SKO from IOCL, but cross-checking with data from the Indian Petroleum & Natural Gas Statistics (2019-21) and IOCL’s data in July 2022 exposed the actual lift to be 17,367 KL.

Further, the report brings to light the allocation of 4,974 KL of SKO to 51 individuals/distributors, with no available records for the remaining quantity (1139.19 KL). Despite the government’s acknowledgment of the discrepancy in September 2022, concerns persist over the authenticity of the explanation provided.

PHED’s Drainage Works Scandal
In a parallel revelation, the CAG report exposes the Public Health Engineering Department’s (PHED) fraudulent payment due to the short/non-execution of drainage works under the Swachh Bharat Mission (Gramin). The report, covering the year ending March 30, 2020, reveals that the Executive Engineer, PHED (Urban) Dimapur Division, overlooked due diligence in verifying executed quantities before approving bills, resulting in a fraudulent payment of Rs 90.54 lakh for non-execution of 2,338 meters of drainage works in 18 villages.

Moreover, the report highlights discrepancies in the construction of 6,540 meters of drainage with bricks in 35 villages, with only 29 villages involved. Joint Physical Verification (JPV) in February 2021 exposed significant disparities, indicating short/non-executions of 2,338 meters.

The government’s response attributing the shortfall to flash floods and ongoing construction at the time of verification has been rejected by the CAG, raising doubts about the explanations provided.

The CAG further revealed excess payments of Rs 1.23 crore to a contractor by the PHED, allowing higher rates over the State Government-approved rate for constructing Community Sanitary Complexes (CSCs) under the Swachh Bharat Mission (Gramin). The report also identified deviations from approved designs and specifications, leading to excess payments to the tune of Rs 72.70 lakh.

The CAG has recommended that the State Government initiate a departmental inquiry and fix responsibility against the erring officials involved in allowing higher rates and failing to exercise due diligence.

AIACO Nagaland, in light of these anomalies and misappropriations, has reiterated its demand for a thorough probe of the Enforcement Directorate ED to ensure accountability and transparency for the welfare of the Naga General Public to oversee and put on vigil that the Government of India programs are not violated.

Sincerely Yours,

Shri. Kheto Thorie .
State  Secretary General AIACO

Shri.Wiphibangbo
State General Secretary AIACO

All India Anti Corruption
Organisation Regd.