: A probe conducted at the behest of the Rural Development Commissioner in a block panchayat has claimed to have exposed embezzlement of Central and State funds devolved for welfare schemes for the indigent and the marginalised sections of the population.
The probe into complaints of fund misappropriation at the Wandoor block panchayat in Malappuram district in early October has underlined irregularities to the tune of Rs.43,24,000 between 2011 and 2016.
The report indicates that this may not be a one off case.
According to the probe report accessed by The Hindu , the funds parked in different bank accounts were allegedly misappropriated by the staff by interpolating counterfoils of bank receipts and manipulating panchayat accounts and statements.
Three employees including a Block Development Officer were suspended and six others have been transferred.
Recently the government had removed a village extension officer from service for allegedly swindling Rs.1 crore.
Violation of norms
The stray incidents, the reports says, point to the haphazard manner in which the accounts and statements are prepared and maintained and also the system of opening bank accounts in violation of the norm that prior permission of Finance Department should be secured before opening an account.
Following the decentralisation of powers, funds worth crores of rupees have been transferred to local governments but, sources say, many may not be following even the elementary principles of financial management and accounting. Proliferation of accounts have further messed up the situation in some.
The inquiry report points out that the block panchayats alone do financial transactions worth lakhs of rupees through banks and treasury accounts.
The maintenance of multiple accounts and transactions give ample scope for the devious to commit irregularities. The volume of transactions is even higher in district panchayats as well as municipalities and corporations.
Strangely, the performance auditor, accountant-general and internal auditors have scrutinised the transactions at Wandoor, but could not detect the irregularities. This was proof how the auditors too could be hoodwinked, the sources added.
The probe team has recommended a thorough scrutiny of all transactions in all blocks.
Though the Chief Secretary has called a high-level meeting to discuss the streamlining of the accounting system, only a focussed approach alone could perhaps salvage the situation, the sources added.