CAG picks holes in AP accounts

Implementation of state plan projects of the government of Andhra Pradesh (AP) like the agricultural human resource development project (AHRDP) and second technician education project (STEP) were flawed, according to the report on the state government's accounts by the Comptroller & Auditor General of India (CAG) for the year ended March 31, 2002.

The report showed unplanned release of funds, delay in selection of sites, time over run and abnormal delay in entrustment of the civil works for these projects.

The report said there was inadequate fund provision for maintenance of infrastructure and this resulted in idling of machinery worth Rs 3.61 crore upto eight years.

Even after two extensions, the AP Hazard Mitigation And Emergency Cyclone Recovery Project (APHM & ECRP) was not completed resulting into an increase of estimated cost by Rs 96.31 crore.

The World Bank also designated it as an 'problem project' and consequently the state lost external benefit of Rs 40.36 crore.

Out of 21286 pending and unsettled inspection report (IR) till end of June 2002, as many as 2058 IR s did not even receive first reply.

IRs were not settled as of June 2002 amounting to Rs 227.15 crore. Around Rs 143.85 crore were owing to non-recovery and non realisation of government debt, the report said.

Diversion of fund was also reported to have contributed around Rs 26.38 crore under this category.

The report showed several irregularities in working of the irrigation and command area development (projects wing) department amounting to nearly Rs 196.85 crore out of which wasteful expenditure and unfruitful outlays was around Rs 59.42 core.

Loss of revenue to the government caused by breach of contract was nearly Rs 114.56 core "" contributing around 59 per cent of the overall loss.