Imphal, March 19 2009: Even though the fiscal position of the state indicated a significant improvement during 2007-08, fraud/misappropriation/embezzlement/loss of funds haunting in many departments as revealed by the report of the Comptroller and Auditor General of India for the state of Manipur for the year ended March 31, 2008. A brief statement of the Auditor General (AG), Stephen Hongray put to the media persons today after the report was presented to the House said as many as 663 abstract contingent (AC) bills involving Rs 601.48 crore drawn by 47 departments during the period from 2003 to 2008 were outstanding to be adjusted through Detail Countersigned Contingent (DCC) bills.

The Deputy AG (A and F) VS Jadan and deputy AG (Audit) S Velliangrei also attended the press briefing held this afternoon at around 4 pm at the office of the Auditor General office at Bapupara.

"Major portion of this money (Rs 351.19 crore) relates to construction works entrusted to entities such as Manipur Police Housing Corporation, Manipur Development Society, Manipur Tribal Development Corporation etc." the AG stated while observing that an excess of Rs 81.59 crore in 13 cases of grants/appropriation during 2007-08 needs regularization under Article 205 of the Constitution.

As per the finding of the CAG, government has lost an amount of Rs 72.62 lakh owing to inaction of the state agriculture department which would be realized as cost for buying 287 pumps-sets.

Three checks amounting to Rs.9.45 lakh issued in the name of one contractor by the PWD Sadar Hills Division were encashed without entering in the cash book and appears to be misappropriated, the CAG report said adding that another excess payment of Rs 21.34 lakh mean for measurement of a layer of Water Bound Macadam of a hill road undertaken by the PWD Tamenglong Division was recorded with abnormal and unconventional specification.

The CAG also detected incurring of Rs 1.05 crore on account of surcharge charge on electricity bills due to non-payment of bills on time and lack of scrutiny of bill in the state youth affairs and sports department which is an avoidable one.

Ineffective budgetary control in the state Irrigation and Flood Control Department resulted in overall of Rs 87.75 crores against budget provision during the fiscal year 2007-08.The department incurred 21 to 61 percent of its total expenditure in March along during the year and it also could not complete three projects even after a delay ranging from 11 to 21 years after their targeted dates of completion.

An amount of Rs 6.60 crore recoverable from the contractor for rescinding a work was borne by the state government," the AG stated.

Three working companies run by the government also incurred an aggregate loss of Rs 55 lakh even though another three working companies earned an aggregate profit of Rs 1.35 crore.

Out of 15 government companies eight are functioning while the rest seven are in defunct state.

overnment invested Rs 43.49 crores and to the eight working companies and Rs 72.74 crores to the non-working companies during the year under report.

The accounts of eight working companies were in arrears for period ranging from 10 to 25 years.

Manipur Tribal Development Corporation Ltd.

Also failed to deposit revenue amounting to Rs 45.36 lakh being sales tax/VAT deducted from the bills of contractors while Manipur cement Limited suffered a loss of plant and machinery worth Rs 56.47 lakh due to non disposal of assets and Manipur Industrial Development Corporation gave undue financial benefit to the contractor by paying advance of Rs 2.10 crore in violation of specific provision of the work orders.

Power department could not recovered energy charges from consumers within the prescribed period led to the loss of revenue of Rs 5.50 crore, the CAG report said.

Taxation department also levied a penalty of Rs 2.40 crores even though the leviable penalty was Rs 4.90 crores for concealement or suppression of turnover resulting in the short levy of penalty of Rs 2.44 crore.

The cost of collection of taxes on vehicle in the state during 2005-08 ranged from 45.77 percent to 52.99 percent of the revenue collected which is very high when compared with the all india average cost of collection of 2.47 percent for the year 2006-07. Despite all this, the overall fiscal position of the state in term of revenue, fiscal and primary deficit improved significantly during the year 2007-08, according to the CAG finding, the AG stated.

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