Tamil Nadu

Excess procurement of fans, mixies, grinders resulted in ₹124.43 crore loss: CAG

The non-compliance to applicable codal provisions and deviations from financial propriety while implementing a scheme for the distribution of electric fans, mixies and grinders (FMGs) to women has resulted in a loss of ₹124.43 crore to the Tamil Nadu government [during the previous AIADMK regime], a report of the Comptroller and Auditor General (CAG) of India has stated.

The CAG report on the general and social sector for the year ending March 2018 (Report no. 1 of 2020), tabled in the Assembly on Thursday, said excess procurement was to the tune of ₹102.45 crore. Besides, the loss due to storage in uninsured godowns was ₹13.64 crore, and there was avoidable expenditure on pre-delivery inspection, which stood at ₹8.34 crore.

The government of Tamil Nadu (GoTN) introduced the scheme in June 2011, and it was to be implemented in five phases.

After the distribution of FMGs to all eligible beneficiaries in the fifth and final phase in March 2018, the Revenue Department held a huge stock of FMGs at its storage points.

“Faced with surplus stocks, GoTN ordered [April 2017] the distribution of surplus appliances for free to police personnel, schools and anganwadis, among others, in contravention of the scheme’s guidelines,” the report said.

“Further, GoTN did not assess the utility of domestic model mixies and grinders at noon meal centres in schools and anganwadis, which did not have grinding needs for items on their menu,” the report added.

In reply to an audit query, the Collectors of Tirunelveli, Dharmapuri and Perambalur and the Tahsildar of Dharmapuri said the surplus stocks arose on account of deaths, permanent shifting, migration, bogus cards and the deletion of ineligible beneficiaries.

The State government said the number of eligible beneficiaries was originally estimated at 1.85 crore, but it came down to 1.81 crore due to diligent monitoring of the distribution process.

“The reply endorses the audit’s finding that the Department should have taken measures to verify the June 2011 data, especially in view of the surplus stocks, arising after distribution every year,” the CAG report added.

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Printable version | Aug 5, 2021 12:44:03 PM | https://www.thehindu.com/news/national/tamil-nadu/excess-procurement-of-fans-mixies-grinders-resulted-in-12443-crore-loss-cag/article34958472.ece

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