The Hindu : Cong. seeks probe into Velugu implementation

Online edition of India's National Newspaper
Tuesday, Jan 21, 2003

Southern States

Southern States - Andhra Pradesh

Cong. seeks probe into Velugu implementation

By Our Special Correspondent

HYDERABAD Jan. 20. The Congress Legislature Party has demanded an enquiry into the functioning of the "Velugu" project alleging violation of Constitutional provisions in the implementation of the project. It also has demanded audit of its funds by the Comptroller and Auditor-General of India. The programme must be implemented through Panchayat Raj institutions and not by any independent and unaccountable organisation, it stated.

A 17-member Congress MLAs' team along with N. Yellaiah, Rajya Sabha member, led by the Leader of the Opposition, Y.S. Rajasekhara Reddy, met the Governor, S.S. Barnala, here on Monday and urged him to direct an enquiry into the affairs of the Society for Elimination of Rural Poverty (SERP) and the State Project Management Unit (SPMU) as the project lacked transparency and there was scope for misuse of funds.

More than Rs. 600-crore loan was obtained from the World Bank for the project and entrusted with an independent network of which was headed by a non-Governmental person as a president and the State project director as the CEO. The organisation was under the control of a general body with the Chief Minister as ex-officio chairman.

Dr. Rajasekhara Reddy explained to the Governor that the Government had resorted to "systematic undermining'' of the Constitutional functioning by keeping out the Panchayat Raj institutions from the purview of the project. There was no role for elected representatives of the Assembly and it was absurd to claim that political and social structures would prevent extension of attention to the needs of people, he said.

The provisions for audit also gave rise to unaccountability as the audit was to be done by a firm of chartered accountants which gave scope for people at the helm to misuse the funds meant for the poor, he said. Dr. Reddy contended that as the Government was securing the funds as a loan, it must be made accountable to people and the Legislature.

Even in the recruitment of employees, the SERP had no accountability to whomsoever and there were no reservations for weaker sections. In the implementation of the project, the employees automatically attend the meetings of the Panchayat Raj institutions without being representatives of people. That was another violation of the Constitution, he said.

The memorandum given by the team also stated that the Panchayat Raj institutions were given powers and functions to implement all policies under the Schedule 1 appended to the A.P. Gram Panchayat Act and hence programmes like "Velugu" could not be implemented through independent organisations.

It urged the Governor to bring in rule of reservations in the recruitment of employees for the project and initiate action against those responsible for undermining the Constitutional provisions.

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