The Comptroller and Auditor General of India (CAG) found serious lapses in the implementation of water quality component of National Rural Drinking Water Programme in the Sate.
The CAG, in a report on Local Bodies for the period 2007-12, tabled in the Legislative Assembly on Thursday, stated that planning was deficient as the annual plans were approved after several days of delays, sometimes stretching to the fag end of the financial year.
There were deficiencies in survey of quality affected habitations; as a result, the data could not be relied upon. The financial allocations for the quality aspect was deficient resulting in the non-utilisation of earmarked funds and there were instances of time and cost overruns to the extent of Rs 93.54 crore, non-completion / delayed completion of works and expenditure of Rs 13.97 crore on non-functional / defunct works, it said.
The CAG said the pace of coverage and completion of projects did not indicate that all the habitations would have access to safe drinking water anytime in the near future, adding, monitoring of activities under the programme at different levels was also inadequate.
While presenting the performance audit of the Jawaharlal Nehru Urban Renewal Mission (JNNURM) projects implemented by the Bruhat Bangalore Mahanagar Palike (BBMP), the CAG observed that the implementation of some of the mandatory and optional reforms at the state and BBMP levels was not achieved. Financial discipline was poor as evidenced by the diversion of funds for other purposes, non-maintenance of statutory records, non-reconciliation of balances, non-maintenance of revolving fund among others.
The CAG conducted a performance audit of the projects covering the mission period of 2005-12 to assess the completeness of infrastructure facilities created and delivery of basic services to the urban poor by the BBMP.
There are 53 projects costing Rs 3,472.02 crore being implemented under JNNURM in Bangalore city. As of March 2012, an expenditure of Rs 2,181.67 crore was incurred. Out of these projects, BBMP is implementing 17 projects. The remaining projects are being implemented by other agencies for projects such as underground drainage system, sanitation, development of traffic and transit management systems, construction of flyovers, rehabilitation and redevelopment of slums among others.
The mission period was contemplated till 2012, however, it was extended up to 2013-14.
In the remodeling of primary and secondary storm water drains, the contractors derived undue benefits by executing items for which abnormally high rates were negotiated. The rates had been brought down after negotiations for items which were not executed or hardly executed, the CAG said in its report.
A review of finances of Panchayat Raj Institutions (PRIs) revealed that there was a steady increase in the allocation of funds to them during 2007-2012 by the state government which, however, had not taken action to revise the "Activity Map", which was introduced in 2003.
There was no "Monitoring Cell" to supervise expenditure incurred by PRIs, the report said.
"There was no mechanism at the apex level to oversee the devolution of functions to the PRIs. Taluk Panchayats had a limited role in the preparation of budget. Balances under suspense heads of accounts were not reconciled," the report noted.
The transfer of funds by the Centre directly to the implementing agencies, not routed through ZP and TP funds, rendered ineffective the control of ZPs over expenditure.
Out of the Rs 10.77 lakh required to be remitted to the government account, the Taluk Social Welfare Officer, Sira taluk, remitted Rs 77,000 only and fraudulently withdrew Rs 10 lakh. The taluk social officer then tampered with the Treasury challan to suppress the short remittances and fraudulent withdrawal, the CAG said.
The CAG has also found that estimation of works under Chief Minister's special grant of Rs 100 crore each to seven city corporations had been prepared without proper investigation and also been split up to avoid sanction of higher authorities.
Road works have received a lop-sided priority in actions plans prepared by the City Corporations (CCs). While the proportion of road works in the actions plans of Davanagere and Hubli-Dharwad CCs was 59 per cent and 68 per cent respectively, it was 58 per cent in Bellary CC.
