The Report of the Comptroller and Auditor General of India for the year ending March 2009 has found several deficiencies in critical areas which impacted the effective functioning of the Delhi Government departments and organisations resulting in loss of crores of rupees to the exchequer.
As per the report, the biggest loss was incurred on the construction of the Kalindi bypass road on the western bank of the Yamuna by the Public Works Department. It said the PWD failed to ensure availability of land and to adhere to the manual provisions which caused an unnecessary expenditure of Rs.52.50 crore on the road as the constructed part could neither be used nor could be aligned with any other road.
Another major loss of Rs.7.64 crore was caused due to non-recovery of the amount by the Delhi Financial Corporation that had relaxed norms for sanctioning of loans ignoring its own financial interest and also failed to take timely action for recovery of the amount. There was another non-recovery of Rs.1.13 crore by DFC and in this case there was failure on its part to realise the prime security of machinery after taking possession of it. Also, the report found lack of adequate pre-sanction scrutiny and poor follow up and monitoring in this matter. It also noted that in another case, the inaction of DFC to take possession of plant and machinery and property resulted in non-recovery of Rs.1.02 crore.
The report has also pointed that there was non-compliance with rules and regulation in the Delhi Jal Board, which released an unwarranted payment of Rs.17.19 lakh to a contractor on account of escalation charges in contravention of codal provisions. Similarly, it said there was failure on part of the PWD observe the codal formalities in supply of drawings within one-eighth of the stipulated time period which led to avoidable expenditure of Rs.28.23 lakh due to re-awarding of work. This also denied the public of the facility of a pedestrian subway for more than 16 months.
In another case, it said the PWD failed to arrive at correct rates for extra items and deviated items resulted in extra payment of Rs.13.21 lakh.
The Audit also found that the PWD failed to ensure availability of clear site for construction of a road and this resulted in unfruitful expenditure of Rs.1.91 crore on its widening.
Besides, it said Rs.1.52 crore were wasted by the Department between 2005-06 and 2008-09 on surplus staff who were not engaged on routine watch and ward works on which avoidable expenditure of Rs.55.90 lakh was incurred.
The report also points to failure of oversight or governance on part of the departments. It said the Tihar Central Jail authorities failed to assess the sanctioned electricity load in consonance with actual requirements and this resulted in avoidable payment of Rs.35.93 lakh on fixed charges on non-domestic electricity supply.
The PWD also made an avoidable payment of interest amounting to Rs.12.67 lakh because it failed to appoint an arbitrator within the statutory period of 30 days in a case in which it also delayed submission of document beyond the stipulated four weeks. It also made an avoidable expenditure of Rs.72.70 lakh because of its failure to incorporate a clause regarding appropriate reduction and escalation in payment to a consultant in case of changes in scope of work.
The report also stated that the Women and Child Development Department failed to review its electricity bills and made payments of fixed charges at non-domestic rates instead of domestic rates and this resulted in excess payment of Rs.18.66 lakh.
Besides, it said, due to poor cash management, the Delhi Power Company Limited suffered a loss of Rs.87.01 lakh.