Comptroller and Auditor General of India flags INR 0.68 crore fraudulent drawals by Drawing and Disbursing Officers and treasury officials in Nagaland.
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DIMAPUR — The Comptroller and Auditor General of India (CAG) has flagged fraudulent drawals amounting to INR 0.68 crore by Drawing and Disbursing Officers (DDOs) and Treasury Officers (TOs) across 10 departments in Nagaland, pointing to possible collusion and systemic failure in financial controls.
The findings are part of CAG reports tabled in the State Assembly during the budget session on March 26, covering the period from 2016-17 to 2019-20.
According to the report, 13 DDOs and TOs fraudulently drew funds through inflated pay bills, double drawal of pay and allowances, and inadmissible arrears in violation of prescribed financial rules.
While departments have recovered and deposited INR 48.61 lakh into the government account as of June 2023 after being flagged, INR 19.74 lakh remains unrecovered. The CAG also noted that no report on disciplinary action against the defaulting officials has been furnished.
The report highlighted that one DDO alone drew INR 82.84 lakh in 30 pay bills by inflating the net total against an admissible amount of INR 71.39 lakh, resulting in excess drawal of INR 11.45 lakh between December 2018 and January 2019. Of this, only INR one lakh had been recovered as of May 2023.
Also read: Nagaland yet to recover INR 54.82 cr from banks for police security — CAG
In another instance, six DDOs from five departments made double drawals amounting to INR 19.35 lakh between March 2017 and March 2020 through 18 bills. Of this, INR 13.02 lakh has been recovered, leaving INR 6.33 lakh pending as of August 2023.
The report further stated that seven DDOs from six departments fraudulently drew INR 37.55 lakh through 51 arrear bills by preparing fictitious ‘due and drawn’ statements for ineligible employees. Of this, INR 34.59 lakh has been recovered, while INR 2.96 lakh remains outstanding.
The CAG observed that such irregularities indicate failure at both the DDO and TO levels to exercise mandatory checks and controls. It noted that departments including School Education, Health and Family Welfare, Home (Police) and Veterinary and Animal Husbandry recorded the highest number of cases during the period from 2016-17 to 2021-22.
It stated that DDOs submitted pay and arrear bills without ensuring accuracy or required certifications, while treasury officers failed to carry out necessary scrutiny before authorising payments.
“The failure of the DDOs and TOs to comply with the provisions under Central Treasury Rules and Receipt and Payment Rules… indicates a possible collusion in fraudulent drawals,” the report observed.
The CAG also pointed out that the objective of ensuring financial accountability to the legislature remained unfulfilled due to non-compliance with directions of the Public Accounts Committee, allowing such financial irregularities to persist.