NEW DELHI, JUNE 12: Close on the heels of MPs’ demand for an increase in the funds allocated under the Member of Parliament Local Area Development Scheme (MPLADS) from Rs one crore to Rs two crore, cases of fraud and instances of funds remaining unutilised have been reported in the performance appraisal report of the Comptroller and Auditor General (CAG).
Topping the list of states with unspent funds is Maharashtra with a whopping Rs 109.83 crores, followed by Uttar Pradesh with Rs 104.07 crore.
The report which was tabled in Parliament yesterday, exposes misuse of funds by the nodal agency. It also makes a scathing attack on the Government for failing to finalise the accounting procedure for the scheme.
The Department of Programme Implementation, the nodal authority for the scheme at the Centre, in March, this year, stated that a detailed proposal was formulated to get the MPLADS evaluated through a reputed organisation but neither the Finance Ministry nor the Planning Commission had agreed to provideadditional resources for the review.
Though under the scheme recommendations made by an MP’s representative is not to be considered even if it has been authorised by the MP concerned, "it was noticed that at least in five states — Maharashtra, Haryana, Orissa, Tamil Nadu and Uttar Pradesh — Rs 24.89 crore were sanctioned by the DCs on the recommendations of the representatives of MPs."
Citing instances, the report says Nanded District Collector sanctioned Rs 33 lakh on the recommendation of Ashok Chawan for his father SB Chawan, Rajya Sabha MP, in 1994-95.
Rajya Sabha MP Dinesh Singh authorised the Haryana Chief Minister to utilise Rs one crore released in 1994-95. The Chief Minister recommended works worth Rs 51 lakh in Ambala district and authorised five MLAs to suggest works for the remaining amount against which Rs 46.44 lakh had been incurred.
Similarly, Kurdha DC sanctioned works worth Rs one crore for the Resident Commissioner, Government of Orissa, on behalf of SR Bommai, Rajya Sabha MP,though the letter did not bear Bommai’s signature.
The report says that Patna Collector sanctioned Rs 95.86 and released Rs 52.70 lakh, out of the funds received for IK Gujral (MP, Rajya Sabha) though he had not recommended the schemes, adding that the District Magistrates of Allahabad, Lucknow and Sonebhadra sanctioned 920 works costing Rs 22.01 crore on the basis of the recommendations made by representatives of a few MPs.
The report also says that "though it has been in operation since 1993-94 no evaluation has been done on achievement of the objective of the scheme".
Expressing concern over the misuse of funds, the audit report says that the DCs did not furnish utilisation certificate for Rs 339.57 crore in 150 districts of 16 states and UTs. "The percentage of shortfall in utilisation of funds ranged between 0.01 to 92.40 per cent," it says and adds that "an unspent amount of Rs 1,039.10 crore was lying with various commercial banks."
The MPLADS, which came into existence on December 23, 1993,enables MPs to select works worth Rs one crore per annum for implementation in one or more districts of his/her choice from which constituency he/she has been elected.
The MP could suggest the works to be done to the District Collector concerned.
The report says that nodal departments were not designated in six states — Meghalaya, Manipur, Arunachal Pradesh, Himachal Pradesh, West Bengal and Mizoram — and even inspection of 10 per cent works every year by District Collectors was not conducted. "The nodal authority has not laid down any guideline for this purpose," it says.
Between 1993-97, the Ministry released Rs 2,324.55 crore for 1,20,242 works recommended by the MPs. The District Collectors, however, sanctioned only 1,05,959 works and spent only Rs 1,285.45 crore. Interestingly, "About 4,569 works worth Rs 51.52 crore were spent without the recommendation of MPs in 28 districts of 13 states," the audit report said.