SHIMLA, July 28: The Comptroller and Auditor General (CAG) of India has charged theprevious Himachal Pradesh government with committing serious constitutional improprieties by unjustifiably raising loans through state Forest Corporation without prior approval of the Centre required under Article 293 (3) of the Constitution.The report of the CAG for 1996-97, which was laid in the state Assembly today by Chief Minister Prem Kumar Dhumal also indicts the previous government severely for paying Rs 1.02 crore to three private companies as arrangers' fee for mobilising the loans besides another Rs 3.64 crores allowed to the investors as ``upfront'' discount.Another point of interest in the CAG report pertains to the financial liabilities of the government overtaking its assets. The helicopter lease contract signed with a private company at a rate of Rs 90,000 per hour ignoring the second lowest offer of Rs 75,000 per hour, also figures in the CAG report.Former CM Virbhadra Singh, who is also leader of Opposition, when contacted told ENS that the CAG report was based on merely the audit objections and it was yet to be scrutinised by the Public Accounts Committee (PAC) of the Assembly. Many audit objections get dropped after PAC scrutiny, he says.Virbhadra Singh, however, strongly protested against BJP-HVC government 's move to publish a separate booklet of CAG titled ``What do the reports of CAG say.''While earlier two CAG reports, which came during the Congress regime itself, had squarely pulled up the government for bypassing the constitutional provisions in raising loans through HPSEB, this time it was the state Forest Corporation which became the target. The corporation, reports say, raised a loan of Rs 154.34 crore ostensibly for payment of advance royalty to the government. But instead, Rs 144 crore out of this was kept under deposits during February-March 1997, to keep its ways and means position favourable.The CAG points out that three companies were paid arrangers' fee and upfront charges were also allowed to the investors and state government stood guarantee and also gave budgetary support against interest liabilities.The actual debt of the government, when loans were raised stood at Rs 1725.24 crores of which the Central government alone bordered at Rs 1271.81 crore.About liabilities exceeding the value of its assets, the CAG said while assets grew by 55 per cent in four years, the liabilities shot up to by 101 per cent during the same period. In 1996-97, the liabilities of the government were at Rs 3767.55 crore and assets were valued at Rs 3523.57 crore.Highlighting other irregularities, the CAG said funds amounting to Rs 553.20 crore, out of the personal ledger account of Nathpa Jhakri Power Corporation were invested during 1992-97 in fixed deposits (Rs 371.78 crore) and savings accounts in post office (Rs 181.42 crore) in contravention of the provisions of the financial rules.Painting a grim picture of the state's financial position, working of the public sector understandings and huge arrears pending, the CAG also highlighted increasing debt and mounting interest liabilities.Even in public sector undertakings the position was not very good.The CAG quoted that the transport director had invested surplus funds of the passengers insurance scheme in deposits and saving bank accounts in contravention of the rules and raised short term loans aggregating to Rs 53.98 crores.
