CAG pulls up FCI for loopholes

Comptroller and Auditor General of India has pulled up Food Corporation of India for inept vigilance system, discrepancies leading to procurement of sub-standard paddy and losses in handling and transportation of foodgrains.

In its latest report tabled in Parliament on Thursday, the CAG cited a number of cases of storage shortages, inaccuracies in measurement of moisture content and non-implementation of controls for timely payment to farmers. CAG was particularly critical of the lack of compliance by vigilance department of FCI in a number of areas of fraud control.

As a result, progress in finalisation of vigilance cases was woefully slow with pending cases increasing to 1663 by the end of 2001 from 572 in 1996. There was 191 per cent increase in pending cases from 1996 to 2001, it added.

It said FCI accounted for total storage shortages of 2.23 lakh tonne valued at Rs 205.44 crore, 2.94 lakh tonne (Rs 286.79 crore) and 2.51 lakh tonne (Rs 243.74 crore) in 1997-98, 1998-99 and 1999-2000, respectively.