Multiple bank accounts being operated by block panchayats for parking the Central and State government funds devolved to them under various schemes will be subjected to a thorough scrutiny.
A secretary-level meeting that reviewed a probe report of the Rural Development Department on embezzlement of Rs.43 lakh at Wandoor block panchayat in Malappuram between 2011 and 2016 is reported to have entrusted the Information Kerala Mission to scrutinise the accounts being operated by the block panchayats and apprise the government of the financial transactions by November 20.
Sankya software developed by Information Kerala Mission (IKM) for streamlining the accounting system in local bodies had won wide acclaim. Hence, the mission has been assigned to track the operative as well as inoperative accounts where local governments have parked funds at their own will, overlooking the Finance Department norms.
The probe initiated at the behest of the Rural Development Commissioner had exposed a systematic pattern in swindling funds by forging bank receipts and statements and it had even escaped the scrutiny of the multi-tier auditing. The probe team felt that it might not be an isolated incident and mooted a comprehensive probe covering the financial transactions of all blocks across the State. Elected members now open accounts at their volition and that provides sufficient leeway to handle substantial sums outside the legal framework.
Local Administration Department sources told The Hindu here that the Sankya system in vogue etched the details of all transactions in a local body and reconciliation of monthly statements had become mandatory.
Plan as well as funds devolved for specific projects are being routed through the treasury and any diversion could be easily detected by the auditors. Since last financial year, local bodies are made to file their annual financial statements through Sankya and digital extract is being forwarded to the Local Fund Audit. Hence, interpolations are not easy too.
All local bodies now have only their own funds, mainly tax revenue, at their disposal and it cannot be directed by one or two officials. Since receipts had to be issued against all payments, those desirous of diverting the funds would have to take a lot of pains for doing the transactions manually and that was not easy either, sources said. The Wandoor case might be an isolated incident or a tip of the iceberg involving a large group that was dedicated to divert public funds through a systematic operation. The IKM report to be submitted on November 20 was expected to shed light on such details, sources said.
Information Kerala Mission to apprise the government of financial transactions by November 20.
