In a decisive move to enforce fiscal accountability, the Kerala government has issued a stern directive to all department heads, compelling them to act swiftly and decisively in cases involving the misappropriation, theft, or loss of public funds and property. The government has made it clear that any delay in addressing such financial irregularities will invite serious consequences for the responsible officers.
PAC Reports Trigger Government Action
The finance department's circular, issued on January 5, is a direct response to sharp criticisms from the Public Accounts Committee (PAC) of the state legislative assembly. The PAC, in its 69th and 83rd reports covering the period 2023-26, flagged systemic delays and weak follow-up actions in cases where government money was siphoned off or lost. The committee had expressed serious displeasure, particularly over delays in registering First Information Reports (FIRs), noting that accused officials were exploiting these lapses to their advantage.
The PAC had earlier underlined the urgent need for prompt, effective, and time-bound action whenever government resources are compromised. It warned that such failures undermine public accountability and erode trust in the state's financial governance systems.
Unambiguous Instructions for Departments
Responding to the PAC's concerns, the finance department has laid down unambiguous protocols. All departments are now mandated to initiate immediate action in every case flagged either by the PAC or by the Comptroller and Auditor General of India (CAG). A key instruction is the timely registration of FIRs wherever warranted under the law.
The circular explicitly states that any delay in taking this crucial legal step will be viewed seriously, with responsibility fixed squarely on the concerned officers. Furthermore, departments must ensure strict follow-up, including fixing responsibility and effecting recovery of losses wherever possible.
Timelines and Transparency Mandated
To prevent investigative files from languishing indefinitely, the government has instructed all departments to prescribe clear, non-negotiable timelines for completing departmental actions. Adherence to these deadlines is compulsory.
Emphasizing transparency and legislative accountability, the circular mandates that all departments must submit Action Taken Reports to the finance (inspection) wing within stipulated periods. This will enable the government to place final compliance reports before the PAC for scrutiny. Since these matters are subject to legislative oversight, any lapse or delay in complying with the new instructions will attract serious disciplinary action.
This robust circular from the Kerala finance department signals a significant tightening of financial discipline, aiming to plug gaps that have previously led to the loss of public money and weakened accountability mechanisms.
