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LATEST NEWS UPDATES | NREGS: UP dists spent crores on calendars, toys by Maulshree Seth

NREGS: UP dists spent crores on calendars, toys by Maulshree Seth

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published Published on Oct 28, 2011   modified Modified on Oct 28, 2011

In his letter to Uttar Pradesh Chief Minister Mayawati, demanding a CBI inquiry into the alleged bungling of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) funds in the state, Union Rural Development Minister Jairam Ramesh has specifically named seven districts where large sums have been spent on purchasing toys, calendars, tents and other such items of questionable relevance.

National and state quality monitors have in their reports mentioned several instances of centralised bulk purchases, not permissible under MGNREGA norms. No tenders wer e invited in some cases, the items were of poor quality in others, and many of these were not found at places where they were meant to be used.

The inquiry reports mention instances of embezzlement, musclemen dictating purchases and dealings with dubious firms. In one case, Rs 50 lakh was paid to a ‘ghost’ firm. In many of these cases, action has been selective, or not at all.

Here is briefly what happened in the seven districts where, according to Ramesh, urgent investigation is required:

Balrampur: In 2007 and 2008, panchayats in Balrampur district bought over 1.5 lakh calendars, each costing Rs 31, with MGNREGA funds. In all, about Rs 50 lakh was spent and no justification was given for the purchase. Tents worth Rs 80 lakh and first-aid boxes worth Rs 7 lakh were also bought. On inquiry, some of these materials could not be found at the panchayat level and the cost was inflated. Sources said while the district project director was suspended, no action was taken against some other officials.

Gonda: In 2007-2008, panchayats in Gonda district purchased toys worth Rs 37 lakh, purportedly for creches for women labourers. Tents worth Rs 1.09 crore were also bought. Most of the purchases were made from the UP Upbhogta Sehkari Sangh Ltd without tenders.

Mahoba: Tents worth Rs 51 lakh were bought from the Lucknow-based Aman Enterprises Ltd in 2008-2009. Till now, the government has failed to locate the firm which got Rs 50 lakh. No tents were found during inspection. Officials shifted the blame to 140 gram sabhas but no effort was made to find out why all the sabhas decided to buy the tents from a “ghost” firm.

Kushinagar: Inquiry conducted by state-level Quality Monitor retired IAS officer Vinod Shanker Chaubey found many panchayats issued cheques worth Rs 50 lakh in the name of “Rajesh”. District panchayat member Vijay Agarwal “Mithu” reportedly collected the cheques and deposited them in the account of his brother “Rajesh Agarwal”. Chaubey had recommended an inquiry by the CB-CID or some other independent agency.

Mirzapur: In Mirzapur district, instances of embezzlement of MGNREGA funds to the tune of Rs 4 crore were found during 2009-2010. In his inquiry report, Vinod Shanker Chaubey said purchase orders were placed and payments made under the influence of “musclemen”, especially in Haliya block. He said enterprises such as Ma Vindhvasani Enterprises, Kaimur Enterprises, Khushbu Order and Supply were given orders even though these did not fulfill norms.

Sant Kabir Nagar: In another inquiry, Chaubey found that centralised purchase of bricks were made in Santha block from a brick kiln owned by a close relative of a BSP MLA in 2009-2010.

Sonbhadra: As much as Rs 250 crore, the maximum in a single district, was spent in Sonbhadra in 2009-2010. Inquiries conducted by both state level and national monitors detected misuse of funds and large-scale embezzlement. Most of the check dams in the district developed cracks within a few months of construction or repair.

The Uttar Pradesh government is now busy collecting details of action taken in the past one-and-a-half years to inform the Centre. But, the ruling BSP will, in all likelihood, describe Ramesh’s letter as “a political stunt” of the Congress, with an eye on the 2012 Assembly elections.

The Indian Express, 28 October, 2011, http://www.indianexpress.com/news/nregs-up-dists-spent-crores-on-calendars-toys/866349/


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