The recent report of the Comptroller and Auditor General of India (CAG) has revealed that some employees of the road construction and rural works department of the Jharkhand government had allowed a some government approved contractors to draw payments against fake or inadmissible invoices against the supply of bitumen for road works.
The Jharkhand government in March 2002 passed a resolution that the contractors engaged in road works, can procure bitumen from the state-owned oil companies directly on the basis of an authority letter to the company by the executive engineer (EE), specifying the name of the contractor, name of the work, the required quantity and quality specification.
According to this resolution, as soon as bitumen is brought to the work site, the EE or his authorised representative is to conduct physical verification of bitumen as proof of purchase and submit a report to the EE.
The EE is responsible for checking the report with the invoices and other related documents for making payments.
The audit findings incorporated in the CAG report had mentioned that in the selected 125 road-works, 31,858.04 MT bitumen was required to be procured. EEs issued 127 authority letters for procurement of 29,58.04 MT bitumen from IOCL, HPCL, BPCL and Bicco Lawarie.
Verification of invoices from oil companies revealed instances of submission of duplicate (transporter’s copy)/copies of invoices bearing identical invoice code, invoices not as per prescribed formats, use of invoices issued in the name of contractors of other state, use of spare/photo copies of original invoices and so on.
The CAG report said that the concerned department failed to verify the authenticity of the invoices submitted by the contractors and to conduct physical verification of the quantity and quality of bitumen.
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Payments for bitumin-based works were made by recording entries in the measurement books (MBs) without ensuring procurement of bitumen.
This caused payment of Rs 40.94 crore for 21,620.935 MT bitumen against 1,912 fake/inadmissible invoices, CAG report revealed.
The CAG has suggested a review of all divisions which issued authority letters to oil companies for procurement of bitumen; and establish the linkages between the authorities issued for procurement of bitumen; and quantity received at work site and consumption of bitumen in road works and quality of roads constructed and its present state.