Financial lapses in MNREGS implementation in MP: Audit report

Various financial irregularities have been found in the implementation of the country`s flagship MNREGS in many districts of Madhya Pradesh, according to an audit report.

Last Updated: Oct 28, 2012, 13:49 PM IST

Bhopal: Various financial irregularities have been found in the implementation of the country`s flagship MNREGS in many districts of Madhya Pradesh, according to an audit report.
The report on Mahatma Gandhi National Rural Employment Guarantee Scheme accounts for 2010-11, submitted to the state government in August, reveals financial discrepancies worth crores of rupees by the district in-charges.

"In the audited account of 2010-11 of district office of Chhindwara, we have noted that balance of opening advance Rs 12,85,000 and closing advance Rs 6,41,000 has been shown in balance sheet. But transactions were not reflected in the receipt and payment account," the audit report, accessed by RTI activist Ajay Dubey, mentions.

The report noted that Sidhi and Alirajpur district office auditor has made adjustment worth about Rs 54 crore of opening grant (for current year 2010-11) which needs confirmation.

In Alirajpur, an adjustment of over Rs 1.53 crore and in Sidhi about Rs 54 crore needs confirmation from concerned auditors, it said.

The report found that grant-in-aid given by the Central government through National Rural Employment Guarantee Council to the state and districts had not been reconciled in eight districts with crores of rupees unaccounted for.

It found discrepancies of about Rs 31 lakh in Bhind, Rs 56 lakh in Jabalpur, Rs 1.29 crore in Khandwa, Rs 35 lakh in Mandsaur, Rs 97 lakh in Rajgarh, Rs 66 lakh in Seoni, Rs one crore in Khargone and Rs 6.94 crore in Singrauli.

MNREGS was launched in 2005 to guarantee employment of minimum 100 days to people living below the poverty line.

State Rural and Panchayat Development Minister Gopal Bhargawa said strict action was taken against those found involved in any sort of wrong doings.

"We have taken action against senior officials. Some IAS officers, who were collectors of some districts, have also been punished. We take strict action against anyone found involved in any sort of wrongdoings," Bhargawa said.

As per the National Rural Employment Guarantee Act 2005,
the Central government may, in consultation with the CAG, prescribe appropriate arrangements for audits of the accounts of schemes at all levels.

"The accounts of the scheme shall be maintained in such form and in such manner as may be prescribed by the state government," it says.

The consolidated audit report, which is a part of a mandatory obligation under the MNREG Act, was prepared on the direction of Madhya Pradesh government by a chartered accountant chosen through open tendering. The report was made on the basis of accounts maintained by district auditors for monitoring implementation of MNREGS.

"We have noted that in district Barwani, statutory audit report arithmetically totalling error amounting Rs 51.42 lakh exist in receipt and payment account...Despite repetitive reminders to the council authorities, this difference could not be patched up," it said.

The auditor found that district statutory report was not maintained in uniformity. In 16 districts the 60:40 ratio between labour and material was not being maintained.

"There are serious irregularities in the implementation of MNREGS in the state. We demand CBI enquiry on all irregularities," Dubey said.