State Govt extends undue favour to Pawan Hans helicopter company : CAG

Report reveals 97.03 Cr ineffective financial management in Horticulture  

0
Image used for indicative purpose only. Source: Internet
Shimla, Aug 13
Himachal  Pradesh Government’s General Administration Department extended undue favour to M/s Pawan Hans Limited (PHL) after incurring unavailable expenditure of Rs 18.39 Cr and wasteful expenditure tune to Rs 6.97 Crore.
Chief Minister Jai Ram Thakur who holds the charge of finance laid the audit report of the Comptroller General of India. Para five of performing audits mentioned that undue favour and avoidable or wasteful expenditure on hiring transport of Helicopters by the general administration department has been done.
” Undue favour was extended to PHL by inserting and modifying conditions that exclude other bidders, allowing PHL to qualify in the technical evaluation ignoring serious issues of its poor safety records and allowing extension of contract despite unsatisfactory service delivery. ” Para mentions.
” Further , unjustified and arbitrary award of ten per cent annual increase in rate resulted in avoidable expenditure of Rs 18.39 Cr while adjustment of excess or deficit flying hours on yearly basis, led to wasteful expenditure of Rs 6.97 Cr on unutilized flying hours.
About Horticulture department
One para-one of the audit report revealed that working of horticulture Department performance audit reveals financial implication of this audit intervention is tune to Rs 97.03 crore. Performing audit included an examination of the elements of the planning process, management of finances, execution of horticulture schemes, activities and internal control systems.
Audit noticed deficiencies in planning, financial management, uneconomic and ineffective execution of various horticulture development activities, including creation of infrastructure, supply of improved varieties of plants. post-harvest management and ineffective internal control.
Report pointed out that the department did not formulate state Horticulture Policy’ Strategic Plan with clear  milestones for development of horticulture in the State.  Department was ineffective in controlling overall as well as per acre decline in fruit production during 2014-19.
Twelve per cent of the allocated funds (2014-19) were not utilised while three per cent of the amount booked as expenditure was parked in saving Bank accounts of 19 drawing and disbursing officers and not actually expended.
State Disaster Response Funds of 21.60 crore was irregularly diverted towards subsidy on pesticides provided to horticulturists.
In ten out of twelve physically verified Plant Cum Demonstration Orchards (PCD0s) 31 per cent area was without plantation, four PCDOs did not have nurseries and eight had inadequate irrigation facilities.
Fruit processing units were established utilizing subsidies of Rs 3.21 Cr Remained non functional. Difference in cost and quantity of pesticides, improper maintenance of data, and non-conducting of internal audit reflected ineffective.

LEAVE A REPLY

Please enter your comment!
Please enter your name here