Devolution of powers to local bodies insufficient: CAG

Govt. pulled up for delaying transfer of water supply and sewerage services

The Comptroller and Auditor General (CAG) has pulled up the State government for delaying the transfer of water supply and sewerage services and the assets and manpower required for these functions to local bodies.

This, the CAG observes, amounts to deviations from the principles of devolution enacted by the Constitution (Seventy-Fourth Amendment) Act.

In its report on ‘Efficacy of implementation of the 74th Constitution Amendment Act’ tabled in the Assembly on Tuesday, the CAG notes that the Kerala Municipality Act requires the government to transfer all assets, water supply and sewerage service, conduct of water supply, and fixing of water tariff and its collection to the municipalities.

However, such a notification has not been issued by the government and the assets and liabilities with regard to water supply and sewerage services continue to be vested with the Kerala Water Authority (KWA).

‘’Unless the government, by notification, transfers the assets, liabilities and all duties related to water supply to urban local bodies (ULB), the State cannot claim to have initiated the devolution of even basic core functions to local government, in compliance with the provisions of the Kerala Municipality Act,” the report says.

While the KM Act empowers ULBs to collect water charges, it is still being collected by the KWA. Water supply pipelines laid with local body funds thereafter become KWA assets, and the operation and maintenance of water supply schemes remain the responsibility of the KWA, it notes.

‘’Audit observed that despite the test-checked ULBs paying ₹37.76 crore to the KWA during the audit period (2015-20) for undertaking these deposit works, the capital assets created with funds from ULBs were not seen transferred to ULBs.”

To a query, the government replied that the local bodies lacked human resources to undertake these responsibilities and argued for the need of a ''centralised management'' by a State-level agency. However, the CAG noted that ''persistence of control'' over local governments by State-level agencies diluted the spirit of devolution, raising ''concerns about the extent of meaningful devolution that has taken place in the State.''

Waste disposal

The CAG report observes that in the case of waste management too, functions appear not to have been fully devolved to local bodies. All municipalities are not fully equipped to handle waste management. A joint verification in four local bodies revealed that solid waste was ''piled up in public places causing environmental issues.''

Of 21 test-checked urban local bodies, 15 had executed an agreement with Clean Kerala Company Ltd (CKCL) for collection of plastic waste. The remaining six lacked effective mechanisms. The CAG observes that 'parastatals' like the CKCL should be assigned supportive roles, while the prime responsibility is vested with the local governments.

Although solid waste management is categorised as a function to be devolved to ULBs, ''Devolution of function to ULBs has not been effective in the true sense, going by the extent of expenditure incurred and capacity for disposal of wastes,'' the report says.