Arvind Kejriwal's demand for the removal of Law Minister Salman Khurshid is backed by the hard stance taken by the Comptroller and Auditor General's report. CAG in its inspection report on the grants in aid released by the Mionistry of Social Justice and Empowerment for the year 2011-12 detected "fraud" in the accounts of the Dr Zakir Hussain Trust run by Khurshid and has recommended recovery of the entire grant with interest from it. However, Loius Khurshid, wife of the minister, who runs the NGO has said CAG is yet to take her evidence against the findings in the report and hence what it says was not true.
The CAG team even made a few visits to Khurshid's residence but came away as there was no one there, the report says, adding that hence the report could not be completed. It says that the camps that were purported to have taken place never took place on the dates mentioned by the Trust and it also takes the ministry to task for not verifying facts adequately before releasing the next instalment of funds for the following year worth Rs 68 lakh.
Kejriwal who was released from police detention after 24 hours on Saturday morning drew courage from this report as he resumed his protest in front of Parliament Street police station here alongwith his supporters and co-activists of India Against Corruption.
His demand is the removal of Khurshid from the Cabinet and his arrest for alleged misappropriation of funds from the Ministry of Social Justice by his NGO Zakir Hussain Trust.
The audit report in a section titled "misappropriation of grant of Rs 71.50 lakh interest of Rs 15.49 lakh thereon and irregular release of further grant of Rs 68.25 lakh" gives details of the fate of the funds that the NGO received, before asking for its recovery.
It says that on the basis of recommendation of Uttar Pradesh Government, a grant -in-aid amounting to Rs 71.50 lakh was sanctioned to Dr Zakir Hussain Memorial Trust Delhi as non-recurring grant during the financial year 2009-10 for distribution of aid and appliances under the above mentioned scheme. The scheme was to be implemented in the 17 districts of Uttar Pradesh.
Test check of at least 5 to 10% of the beneficiaries to whom aids and appliances to be given were to be conducted by the field agency created by recommending authority and forwarded to the ministry.
Also Read
Further, photographs of the camp/function for distribution of aids and appliances and also press clippings, posters, pamphlets etc. are to be submitted to the ministry with the proposal for subsequent release of grant under the scheme.
The case of missing camps:
The problem arises here. The records relating to utilisation of grant i.e., holding of camps, conducting of inspection and purchase of aids and appliances in the State revealed one set of dates of events/transactions. However the letters from the Trust to the district magistrates revealed that they did not hold any camps in 2010 for which the funds were given.
Says the report: A test check of records relating to Bareilly, Siddhartha Nagar and Shahjahapur, showed letters by the Trust dated 01.04.10 addressed to the District Magistrate of these districts stating that the Trust intended to hold camp for grant sanctioned by the ministry for the year 2009-10. It indicates that camps were not held before April, 2010 in these three districts. Thus, wrong information was furnished by the Trust to the Ministry.
Subsequently the ministry requested (in November 2011) the Special Secretary, Department of Disabled Welfare, Uttar Pradesh to confirm the veracity of the test check reports submitted by the Trust for the grants released during 2009-10.
Referring to this letter, Chief Development Officer, Allahabad on 16-09-11 and District Magistrate, Allahabad on 07-10-11 confirmed that no camp was organised by the Trust till then. Thus, out of 17 districts, no camps were held in Allahabad, Bareilly, Siddhartha Nagar and Shahjahapur.
In remaining of the districts, the camps were organised during the period January-March 2010. However, the aid and appliances were purchased in July, 2010. In case of Sant Ravidas Nagar, it was noticed that inspection was got conducted on 04.06.2010, but the aid and appliances were dispatched by supplier on 19.07.10.
Fresh grants sanctioned:
Says the report: "Instead of recovering the grants along with interest of Rs 15.49 lakh at the rate of 10% annual from April 2010 to May, 2012, the ministry released grant of Rs 68.25 lakh (March 2011) for the financial year 2010-11 for implementing the scheme in the same 17 districts for which grant of Rs 71.50 lakh was released during 2009-10. As per terms and conditions of the sanctions, a utilisation certificate was to be furnished within six months of the close of the financial year i.e. 30.9.11. However, no UC was received till the date of audit."
"From the above, it can be concluded that the on one hand entire grant of Rs 71.50 lakh was not utilised by the Trust for the purpose for which it was sanctioned and on the other the wrong report regarding organisation of the camp was given by the Trust." it says.
Suspected fraud:
"No response from the Trust was received in respect to our communication. From this finding in the ministry and chain of events relating to audit of the Trust indicates suspected fraud in the accounts of the Trust. On this issue Ministry stated that The Trust is not under the aegis of this Ministry. The reply of the Ministry is factually incorrect as the grants have been released by the Ministry of Social justice & Empowerment to Trust and as per the provisions of the sanction order accounts of the Trust would be open for audit by CAG of India. Hence, control with respect to getting the audit of Trust conducted by the CAG of India rest with the Ministry of Social Justice & Empowerment and in event of non compliance of conditions of the sanction order Ministry may take actions against the Trust," it says.
Ministry's defence to CAG:
In response to audit observation Ministry in its reply stated (11.06.12) that due to paucity of time, the test check reports for 2009-10 directly submitted by the NGO were accepted subject to the condition that the same would be got confirmed separately. Regarding the holding of Camps during January, 2010 to March, 2010 and procurement of aid and appliances in July, 2010, it was stated that it would be got clarified from the NGO, the report says.
"Recover funds with interest":
"The reply is not tenable as the guidelines stipulate that test check reports must come through the State Government and the Ministry failed to properly scrutinise the information furnished by the Trust relating to holding of camps for distribution of aids and appliances. In the light of the above it is suggested that grant of Rs 71.50 lakh may be recovered from the trust along with up to date interest on it," the CAG says.
Louis Khurshid denies :
Louis Khurshid has said that she has spoken to the office of the CAG and was assured that nothing would go in the report until her views were incorporated. She told reporters that she had certificates for the expenditure at the camps, which she would submit to the CAG on Monday itself.
She said that the Prime Minister and Congress president's office have been kept informed and her silence was because she was fighting the case in court and she was certain to be proved innocent.