Lack of initiative by Andaman and Nicobar Islands administration for framing periodical rules necessary for smooth operations of Port Management Board (PMB) resulted in shortcomings in levy and collection of cargo and vessel related charges, CAG report has revealed.
In its first separate report for Union Territories without legislatures for the year ending in March 2014, the CAG also noted that in the absence of such initiatives, workforce for cargo handling was not managed efficiently. There was no policy for augmentation of revenue nor was any policy formed or framed for land management, it added.
Objectives of PMB entailed expansion extension of facilities at ports of Andaman and Nicobar islands, formulation of rules and regulations towards levy and collection of various charges and for conservancy of harbours, the auditor said.
"However, the powers required for fulfilling all the objectives were not vested with the PMB. No initiative was taken by the administration for framing periodical rules and regulations necessary for the smooth operation of activities being executed by PMB," CAG added.
The auditor further observed absence of proper internal control mechanism further affected the functioning of PMB.
"The PMB has accepted majority of the recommendations of the audit," CAG said.
There are 23 notified ports and 14 other ports in Andaman and Nicobar islands. The PMB was formed in October 1983 to administer and exercise control over the port activities.
