The Comptroller and Auditor General of India (CAG) in its report on the financial performance of the Jharkhand government for the year ended March 31, 2008, has strongly criticised the state government’s undertakings for failure in finalising annual accounts within prescribed period. The CAG’s report was recently tabled in the Parliament on account of President’s Rule in Jharkhand.
The report said that the Jharkhand government had invested Rs 3322.97 crore – equity Rs 12.35 crore, loans Rs 1238.53 crore and grants/subsidy Rs 2072.09 crore in nine working PSUs during the year ended March, 2008.
The report said that in the absence of accounts and their subsequent audit, it cannot be ensured whether the investments and expenditure incurred have been properly accounted for and the purpose for which the amount was invested has been achieved or not and thus the government’s investment in such PSUs remain outside the scrutiny of the State Legislature.
CAG said, “Delay in finalisation of accounts may also result in risk of fraud and leakage of public money apart from violation of the provisions of the Companies Act, 1956."
The report said, of the three loss incurring working government companies, Tenughat Vidyut Nigam Limited had accumulated losses aggregating Rs 221.83 crore, which exceeded its paid up capital of Rs 100 crore.
