An audit of the unified Municipal Corporation of Delhi (MCD) detected financial irregularities of nearly Rs 70 crore,mostly in the Health and Sanitation department.
The report for 2009-10,prepared by chief civic auditor Nandan Kishore,has been presented to the Standing Committees of all the three new corporations.
The highest lapse,of over Rs 23 crore,was found in the Department of Environment Management and Services,the report stated. The department hired tipper trucks and other equipment to remove garbage at exorbitant rate without the consent of the Standing Committee.
Accordingly the evaluation committee recommended for approval of rates for Rs 2,500 for 100 km per day and Rs 18 per km for extra mileage on a contractual basis. The Finance (department) concurred the proposal on basis of conditions that as the tentative expenditure would be more than Rs 25 lakh,the proposal should be sanctioned by Standing Committee and the expenditure should be charged in related head of account, the report said.
The report said,The department obtained the approval from the Commissioner,but booked the transaction under head of account for Five Year Plan Schemes and not for undertaking day-to-day work.
Though the irregularity was brought to notice and referred to the CA-cum-Finance,no reply was received by February 2012.
The report also stated failure of the corporation to procure the grant-in aid by Director of Family Welfare,under Government of India.
The corporation,for providing the services of the maternity and child welfare,spent over Rs 36 crore from 2006-2010. The aid for the purpose is given to the corporation by the Director of Family Welfare. The corporation not pursuing the Government of India for release of grant in aid of Rs 36.13 crore has put tremendous burden on the corporation, said the report.
The audit also pointed to low collection of property tax and other fees.
The civic body did not ensure quick recovery of the dues in case of dishonored cheques. The corporation should have levied penalty on the defaulters and recovered the payment. No action was taken against as many as 205 dishonored cheques, the audit report said.
A total of Rs 5 crore were lost in non-recovery of property tax,as per the corporations guidelines. Another Rs 15 crore was lost for non-recovery after setting up of structures for cellular mobile phone services.