Bhubaneswar, Sep 29: The Comptroller and Auditor General detected massive irregularities in the sanction and execution of projects under District Mineral Foundations, including sanctioning crores of funds during the Covid 19 pandemic and Rs 136.77 crore for constructing a hockey stadium.
According to CAG’s performance audit on the implementation of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and functioning of DMFs, tabled in the Assembly on Monday, Odisha spent Rs 983 crore on projects in 976 villages of Keonjhar and Sundargarh during 2015-16 to 2023-24, which were not affected by mining.
The CAG also pointed to widespread norm violations, poor planning and a failure to prioritise the communities for whom the funds were created.
The auditor examined the records of six DMFs (of Keonjhar, Sundargarh, Jajpur, Dhenkanal, Mayurbhanj and Nabarangpur) and found that Rs 22,568.17 crore, including Rs 1,772.66 crore as interest was collected and 17,435 projects worth Rs 20,947.52 crore were sanctioned between 2015-16 and 2023-24.
Despite such massive spending power, none prepared the mandatory perspective plan or master plan. It also found that no DMF created an endowment fund for sustainable livelihood support for mining-affected people.
“As many as 9,739 projects worth Rs 17,926.79 crore were sanctioned from DMF in Keonjhar and Sundargarh districts during 2015-16 to 2023-24. Out of this, expenditure of Rs 983.32 crore was made towards implementing projects in 976 non-affected villages, whereas not a single project was implemented in 488 directly affected villages and 96 indirectly affected villages,” the report said.
Of the Rs 1,164.43 crore utilised in Jajpur DMF, 43.54 per cent, which translates to Rs 507.02 crore, was used in indirectly affected areas, exceeding the prescribed limit of 40 per cent, it stated.
Of the six selected DMFs, Mayurbhanj, Dhenkanal and Nabarangpur districts had not opted for a flexi deposit/auto sweep account for surplus DMF funds during 2015-2024, resulting in an interest loss of Rs 9.49 crore. Similarly, Keonjhar DMF incurred an interest loss amounting to Rs 84.51 crore.
DMF funds of Rs 171.79 crore from Jajpur, Keonjhar and Sundargarh districts were released to the MGNREGS director for the payment of additional wages to job seekers, which violates the Ministry of Rural Development guidelines, the CAG said.
“Out of total administrative expenditure of Rs 99.81 crore in Sundergarh DMF, Rs 25.01 crore was irregularly utilised for purposes other than administrative expenditure, such as engaging vehicles for police patrolling, renovating the municipality office, renovating the reading room at the collector’s residence, inauguration charges and organizing school functions, etc.,” the auditor pointed out.
In Jajpur, Keonjhar and Sundergarh DMFs, implementing agencies had not returned the unspent amount of Rs 470.25 crore and the interest earned thereon, amounting to Rs 26.51 crore, to the DMFs after project completion.
Similarly, the implementing agencies of Dhenkanal and Mayurbhanj had not returned interest amounting to Rs 87 lakh to their respective DMFs.
Furthermore, an expenditure of Rs 136.77 crore was made for constructing a hockey stadium out of DMF funds in Sundergarh, and the project does not fall under any activities permissible under the scheme guidelines, the audit said.
The CAG further pointed out that Rs 109.45 crore from Sundargarh’s DMF was paid to a private hospital in Rourkela against a requisite payment of Rs 98.85 crore, resulting in an excess payment of Rs 10.60 crore during the Covid pandemic.
The auditor advised the Odisha government to ensure proper maintenance of DMF fund accounts as per the codal provisions and the refund of accrued interest thereon by the implementing agencies.
It recommended that the State government ensure timely completion of projects sanctioned and full utilisation of funds released within the financial year and submission of utilisation certificates.
