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LATEST NEWS UPDATES | No account auditing of Rs 1.08 lakh crore released under NREGA: Centre by Dhananjay Mahapatra

No account auditing of Rs 1.08 lakh crore released under NREGA: Centre by Dhananjay Mahapatra

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published Published on Jan 29, 2011   modified Modified on Jan 29, 2011

The Centre released Rs 1.08 lakh crore to states under the Mahatma Gandhi National Rural Employment Guarantee Scheme since February 2006 but did not carry out account auditing at any level, the government told the Supreme Court on Friday.

This admission by the Union of India meant violation of the intent of Section 24 of the Act, which says, "The central government may, in consultation with the Comptroller and Auditor General (CAG) of India, prescribe appropriate arrangements for audits of the accounts of the schemes at all levels."

The CAG carried out a sample performance auditing in 68 of the 625 districts covered under MG NREGA, the Centre said. Fallout of non-auditing of accounts was visible from the performance auditing results reported to the court.

The Centre said, "So far, more than 4,600 officials at different levels were proceeded against and discrepancies and misappropriation of Rs 88 crore have been detected."

After five years of MGNREGA being implemented, the government is now in the process of framing rules for mandatory auditing of accounts. It said the new rules were being finalised after obtaining the CAG's views.

It agreed with the court's concern and said, "Unless proper transparency and accountability is ensured, the programme will itself come under danger."

It added, "Social audit and audit rules to prescribe appropriate arrangements for audit of the accounts of schemes at all levels have been framed under Section 24 of the Act and referred to CAG for their comments. The suggestion of the CAG has been received and is under process of examination."

On December 16 last year, the court had rapped the Centre and states for failure to discharge duties under MGNREGA aimed at providing "right to livelihood" to millions of poor and hungry in the hinterlands.

The court had noted the disbursal of Rs 33,506 crore out of an available fund of Rs 42,529 crore for the year 2009-10 and raised serious doubts about the money reaching the needy without being diverted or misappropriated.

The court had said, "In the affidavits filed by the Union of India as well as the states, the allegations in regard to irregularities, diversion of funds, improper maintenance of records and non-implementation of schemes have been vaguely denied without providing any specific data-based explanation in response thereto."

"This clearly shows default on the part of the Union of India as well as the states in discharging their statutory obligations of achieving the public purpose that is sought to be achieved under the provisions of NREGA," the court had said and sought details of auditing of accounts under MGNREGA.

The Times of India, 29 January, 2011, http://timesofindia.indiatimes.com/india/No-account-auditing-of-Rs-108-lakh-crore-released-under-NREGA-Centre/articleshow/7380897.cms


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