According to the Comptroller and Auditor General of India (CAG), “Audit of pay bill vouchers, pertaining to the period 2017-18 and 2018-19 of various Nagaland Departments submitted by the Treasury Officer, Nagaland to Principal Accountant General showed that 18 DDOs of 13 Departments had misappropriated 2.26 crore by fraudulently drawing pay and allowances and Office Expenses”.
These reports were disclosed by the CAG in its Social, Economic, General and Revenue Sector for the year ended 31 March 2022 report.
The money, according to the CAG, was withdrawn by inflating the net total of pay bills, double drawal of pay and allowances, arrears, inadmissible drawal of pay and allowances including arrears, fictitious drawal by manipulating bills, fictitious drawal of TA bills- all in violation of the prescribed Financial Rules.
Out of the 13 Departments, the CAG informed that the Nagaland Departments of School Education, Health & Family Welfare, Home (Police) and Veterinary & Animal Husbandry had the most cases of irregularities on the fraudulent drawal by the DDOs over the last five years.
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When the matter was intimated to the Departments concerned, the Departments recovered (September 2018 to March 2022) ₹40.12 lakh and deposited the same into Government account. However, reports on initiating disciplinary action against the defaulting officials was not furnished.
According to the CAG, the fraudulent drawals indicated failure at both the DDOs and TOs levels to exercise control and checks as prescribed by rules and procedures. “The DDOs concerned prepared the pay bills/ arrear bills without ensuring correctness of the arithmetical calculations and presented the bills to the concerned Government Treasuries by appending the required certificates (Non Drawal Certificates, etc.) as a matter of routine. The TOs also did not exercise required checks before authorising the payments. The blatant failure of the DDOs and TOs in complying with the provisions under CTR and Receipt and Payment Rules, while preparing and passing the bills, indicates possible collusion for fraudulent drawals,” stated the CAG report.
Financial malpractices continue to persist due to failure of Department to comply to PAC recommendations
Following the detection, the Public Accounts Committee (PAC) Reports (the principal medium by which the Legislature enforces financial accountability of the Executive to the Legislature) made recommendations to the Departments concerned. Departments in Nagaland are expected to provide timely response in the form of Action Taken Notes (ATNS) within two months
The concerned Departments, however, failed to submit ATNs on the recommendations made by the PAC.
“Thus, due to failure of concerned Departments to comply with instructions of the PAC, the objective of ensuring financial accountability of the Executive to the Legislature remained unfulfilled and these financial malpractices continued to persist,” stated the CAG.
Recommendations
The CAG has further made recommendations to the Nagaland State Government to-
i. Investigate the matter and take appropriate action against the delinquent officers for the criminal offense of fraudulent withdrawal/ theft of public money.\
ii. Take steps to recover the amount misappropriated immediately from the concerned employees/ DDOS/ TOS with penal interest.
iii. Investigate all such matters for all the Departments of the State.
iv. Initiate steps to strengthen the internal control mechanism in all departments to prevent recurrence of fraudulent drawals and ensure that appropriate checks and balances are in place.
V. Refer the cases to State Vigilance Commission for further investigation.
