[Reader-list] Modi and the brush of black colour.

[Rakesh Iyer]

Dear All

Since people always seem to be complaining that Modi is painted with a
communal brush and that the 'sickulars' are always after him, I for the
moment will now portray his and his govt's other sides, not depicted by me,
but put up in the CAG report of Civil Audit ending March 31, 2008.

This is a series of set of facts presented in CAG report which I am putting
up. This report, as also others are there in public domain and you can check
them to find out in case you have doubts. Please type CAG in google and
check on the site, you can find the file from which I am putting out these
contents. Enjoy reading, if you have the patience to read this.

This is just the first set. I will soon put further facts which can finally
ensure people see Modi in real light rather than the PR light in which he
wants us to see. This does not mean Congres or Left governments have done
well, it only is a reflection of what Modi's government is.

Regards

Rakesh

*Gujarat fact file:*

*Grants & Appropriations*

1) *Grant No.66 - Irrigation & Soil Conservation*

As against an amount of Rs. 1238.82 crore to be spent originally as grant,
the actual expenditure was just Rs. 1,000.63 crore rupees, thereby saving Rs
238.19 crore. This was mainly due to slow progress of work, non-receipt of
administrative approval and non-commencement of work.

2) As per Article 205 of the Constitution of India, it is mandatory for a
State government to get excess amount over a grant/appropriation regularized
by the State Legislature. However, the excess expenditure amounting to Rs.
13122.85 crore for the years 1993-94 to 2006-07, had
not been regularized as far as August 2008. This is breach of Legislative
control over appropriations.

3) Under 43 cases of grants and appropriations, an excess of Rs. 1055.38
crore was spent during the year, which had to be regularized under Article
205 of the Constitution. However, reasons for the excess had not been
furnished as of August 2008.

4) In 31 cases, against additional requirement of only Rs. 1253.03 crore,
supplementary grants and appropriations of Rs. 1587.46 crore were obtained,
resulting in savings aggregating to Rs. 334.43 crore. Why? God knows.

5) In 30 cases, supplementary provision of Rs. 1063.34 crore proved
insufficient leaving an uncovered excess expenditure of Rs. 982.34 crore.

6) In case of 'superannuation and Retirement allowances to Panchayat
employees', since three fiscal years (2005-06, 2006-07 and 2007-08), excess
amount has been put against required allocation as grants consistently. Why?


7) In 119 caes of grants/appropriations, Rs. 4,085.60 crore were surrendered
in March 2008, thereby indicating inadequate financial control over
expenditure.

8) The expenditure incurred in March 2008 in 18 cases ranged between 44 and
99 percent of the total expenditure during the year indicating a tendency to
utilize the budget at the close of the financial year, rather than
distributing govt. expenditure evenly throughout the year. The
rush of expenditure in the closing months of the financial year is regarded
as a breach of financial rules.

9) In 49 cases, expenditure aggregating Rs.1430.46 crore exceeded the
original provisions by Rupees five crore or more in each case and also by
more than 10 per cent of the total provisions.

10) As envisaged in Budget Manual, expenditure should not be incurred on a
scheme/service without provision of funds. It was, however, noticed that,
expenditure amounting to Rs.579.18 crore was incurred in 7 cases without any
provision wherein rupees one lakh and above in each case was incurred.

11) *Audit of Abstract and Detailed Contingent Bills*

As per codal provisions and instructions issued by the State Government, DC
Bills should be sent to the Accountant General (Accounts and Entitlement)
Gujarat, Rajkot, by Drawing and Disbursing Officers within three months from
the date of drawal of AC Bills. The amount drawn on AC Bill should be
utilised by the Drawing and Disbursing Officer for the purpose for which the
drawal was made. Test check of abstract contingent (AC) Bills and detailed
contingent (DC) Bills in departments revealed the following:

*Non-submission of DC Bills*

Rupees 13.91 crore were drawn on 79 AC Bills between March 2004 and December
2007 , for which no DC Bills were submitted. Out of these, Rs.8.47 crore
drawn on 11 AC Bills (Rs.1.28 crore drawn on five AC Bills in March 2004;
Rs3.36 crore drawn on three AC Bills March 2005 and Rs.1.40 crore drawn on
an AC Bill in March 2006 by the Administrative Officer, General Hospital,
Gandhinagar ; Rs.1.23 crore drawn on one AC Bill in March 2006 and Rs.1.20
crore drawn on another AC Bill in March 2007 by the Administrative Officer,
Central Jail, Sabarmati, Ahmedabad) were credited in the PLA, in
contravention of the provisions of the Treasury Rules apparently to avoid
lapse of grants.


*Narmada, Water Resources, Water Supply and Kalpsar Department

1) Sujalam Suphalam Yojana*

*Highlights:
*
The Spreading Canal targeted to complete by December 2005 at cost of
Rs.458.50 crore has not been completed despite expenditure of Rs.911 crore.
There were cases of  non-achievement of physical targets, delay in execution
of works. As against target of 32 drinking water supply schemes for
providing water to 4,904 villages and 34 towns, only six schemes were
completed and only 2,524 villages and 19 towns were covered till March 2008.
A review of these projects disclosed that the progress of these projects was
hampered mainly due to large number of contracts awarded to individual
contractors, delay in land acquisition and in obtaining permission from
Forest, Railway and Road authorities. In many cases, estimates were
unrealistic resulting in contractors enjoying huge unintended and undue
benefits.

*More Highlights:
*
a) Execution of work of Sujalam Suphalam Spreading Canal without public
participation led to additional burden of Rs.55.73 crore on the exchequer

b) Due to incorrect fixation of unit rate avoidable liability of Rs.21.01
crore was created

c) Ignoring the decision to award one contract to a contractor, 102
contracts involving Rs.396.30 crore were awarded to 16 contractors

d) Excavated hard rock of Rs.66.01 crore was not accounted for

e) Due to non-completion of four pumping stations, expenditure of Rs.255.70
crore on Hathmati-Guhai Pipeline Project became idle investment

f) Pumping operations were not carried out from Piyaj-Dharoi Pipeline
project constructed at a cost of Rs.266.47 crore rendering the expenditure
unfruitful since November 2004

g) Non-synchronisation of work of 54 check dams with the work of Narmada
branch canal resulted in blocking up of Government fund of Rs.33.52 crore

h) 3,256 check dams constructed at a cost of Rs.97.35 crore during 2004-08
were damaged to the extent of Rs.20.03 crore during monsoon

i) Four group water supply schemes covering 123 villages, completed between
May 2005 and July 2006 at a cost of Rs.37.25 crore were not accepted by
Village Panchayats due to availability of water from other sources

j) Excess payment of Rs.8.93 crore was made for price variation of steel
plates/HR coils

*2) Unfruitful Expenditure Achievements*:

*a) Hathmati-Guhai Pipeline Project*

To provide drinking water and irrigation facility to North Gujarat Region,
the Chief Engineer, NWRWSKD accorded AA (November 2001 –Rs.311 Crore and
revised October 2004 – Rs.333.37 crore) and TS for Rs.332.62 crore (November
2004) for Hathmati - Guhai Pipeline Project. The work of laying of pipeline
executed through Drainage Division, Gandhinagar and Water Resources
Investigation Division, Himatnagar, commenced in February 2005 was completed
in February 2007 and March 2007 as against stipulated date of February 2006,
at a cost of Rs.255.70 crore. However, the work of four pumping
stationswhich was to be completed by August 2006, was not completed (March
2008). Expenditure of Rs.28.01 crore was incurred on these pumping stations.
Thus, non-synchronization of pipeline work with pumping station works
resulted in idle investment of Rs.255.70 crore on pipeline work. Besides,
the intended benefits remained unachieved.

The Government attributed (September 2008) the delay to heavy rainfall in
2006 and 2007. This was not tenable as execution period was fixed taking
into account the monsoon period and both works should have been taken up
simultaneously.

*
b) Piyaj-Dharoi Pipeline Project.*

Government accorded AA (November 2001 –Rs.311 crore -revised October 2004 –
Rs.333.37 crore) and TS for Rs.170.20 crore (July 2002) for Piyaj - Dharoi
Pipeline Project. The work involving laying of pipeline and three pumping
stations commenced in December 2002 and was scheduled to be completed by
December 2003 was completed in November 2004 at total cost of Rs.266.47
crore. However, the project failed to pump water into the Dharoi dam till
March 2008 rendering the expenditure Rs.266.47 crore unfruitful. Reasons
were not available on record and were also not furnished by concerned
Divisional Officers, though called for (April 2008).

*c) Check dams constructed in Surendranagar district*

Government accorded (August 2004) AA for Rs.84.88 crore for construction of
107 check dams on big rivers of Surendranagar District. Accordingly 28
packages have been approved for execution of work. Out of 107 check dams, 72
check dams were planned to be filled in by
surplus flood water of Narmada river through six branch canals of Narmada
Canal, construction of two of which were completed (March 2008). Scrutiny
revealed that out of 100 check dams completed, 54 check dams constructed at
a cost of Rs.33.52 crore were falling under the command area of Narmada
project resulting in overlapping of the command areas. Since the location of
the check dams was already covered under the Narmada project and the check
dams are intended to store rain water, the basic purpose of the check dam is
defeated.

Further, the work of canals from which the check dams were proposed to be
filled in was expected to be completed by 2010 which indicated that the
check dams were constructed without proper planning. Further, due to
nonsynchronization of check dams work with Narmada branch canal work
resulted in blocking up of Government fund of Rs.33.52 crore.

*d) Balaram Water Resources Project*

Government accorded AA (January 1999) and TS (October 2004) for Rs.8.07
crore for construction of earthen dam, masonry dam, spill way and head
regulator of Balaram water resources project to provide irrigation
facilities to 483 ha of land in three villages60 of Palanpur
district. The project also included construction of main canal and branch
canal estimated to cost Rs.1.17 crore. Scrutiny revealed that the above work
was completed (June 2007) at a cost of Rs.9.98 crore. However, work of main
canal and branch canal was not taken up, as nine km canal length was falling
in Forest land, of which 2.5 km was under Wildlife Sanctuary. The proposal
for acquisition of forest land was submitted (January 2008) to forest
authorities. Thus, no fruitful purpose was served out of expenditure of
Rs.9.98 crore; besides depriving the irrigation facility to the targeted
population.

*e) Abandoned work*

The work of construction of Canal Syphon across river Khari (Mehsanachainage
210.300 km) was awarded (April 2005) to a contractor at his tendered cost of
Rs.3.25 crore with time limit of 6 months. Scrutiny revealed that after
executing the work to the extent of Rs.1.21 crore (37
per cent), the contractor abandoned the work (July 2007), reason for which
was not on record. Looking to the slow progress of work, the CE had
instructed (January 2006) SE to relieve the contractor and re-invite tenders
for the remaining work. The Division had also submitted (March 2006) the
proposal to the SE for termination of contract. However, neither the
contract was terminated nor has the work been completed so far (June 2008).

*f) Check dams*

To conserve water, 10,971 Check dams (total cost-Rs.352.73 crore) were
constructed under SSY during 2005-08 with Government contribution and public
participation of either in the form of cash or labour, through Prayojaks.
The rate of contribution was 60 per cent and 40 per cent respectively for
Government and public up to March 2005, and 80 per cent and 20 per cent
thereafter. In Kachchh Irrigation Division, 144 check dams (cost Rs.5.28
crore) were constructed during 2003-06. Scrutiny revealed that as against 60
per cent contribution
(Rs.4.22 crore) payable after quality check, Government paid Rs.2.07 crore.
The payment ranged from 10 per cent to 55 per cent of the cost of check dam,
though there was no provision in the agreement for such restriction.
Further, 70 check dams (49 per cent) for which Rs.77.94 lakh was paid by
Government, were found (2006-07) to be substandard by quality control
division of the Department.

In 14 test checked Divisions71 7,789 check dams (total cost Rs.232.69 crore)
were constructed during 2004-08. During monsoon in 2006-07 and 2007-08,
3,256 (42 per cent) check dams constructed at a cost of Rs.97.35 crore were
damaged to the extent of Rs.20.03 crore. Government incurred expenditure of
Rs.9.36 crore for repairing 1,788 check dams, though as per the agreement,
maintenance and repairs were to be carried out by prayojaks. Remaining 1,468
check dams were yet to be repaired (March 2008).

*g) Water supply schemes not accepted by villagers*

As per Administrative and Financial Regulation of GWSSB, completed WSSs
should be accepted by the Village Panchayats/Urban Local Bodies. Scrutiny
revealed that four WSSs 76 were completed (December 2004, July 2006) at a
cost of Rs.198.54 crore. Out of 628 villages targeted, 324 (52 per cent)
villages had refused to accept WSSs for which reasons were not available;
this indicated that adequate survey was not carried out regarding demand for
water by the villagers.
*
h) Idle investment of water supply project*

In Palanpur Division, four group water supply schemes covering 123 villages,
were completed between May 2005 and July 2006 at a cost of Rs.37.25 crore.
However, none of the Village Panchayats had accepted the water from the
scheme, due to availability of water from other
sources, which resulted in idle investment of Rs.37.25 crore.