Staff Reporter

VISAKHAPATNAM: Two treasury officials have been placed under suspension and some more heads may roll following alleged misappropriation of Rs.1.40 crores from the treasury towards payment of `arrears' to 400 plus teachers recruited in the agency area of the district.

Sources told The Hindu that a total number of nine officials, including a senior official in-charge of education in the agency, were involved in the scam relating to issuance of an order for disbursal of arrears from April 2005 to September 2006.A GO confirming the service of Special Vidya Volunteers was issued in October 2006.

As per GO Ms. No. 130, they were supposed to get regular pay from November 2006 though their service was due for confirmation from April 2005.

One of the officials involved in the scam issued an order for releasing the arrears for the period for which there was no clearance from the Government. After disbursal of the said amount, the officials involved in the scam allegedly took Rs.40 lakhs towards `bribe' from the teachers recruited in Paderu and Araku.

Director of Treasury. Nagarjuna Reddy, who held a review meeting with the officials at the Collectorate here on Tuesday, refused to comment on the scam.