CAG Audit Uncovers Widespread Financial Mismanagement in Jharkhand PSUs
A recent report from the Comptroller and Auditor General (CAG) of India has brought to light significant irregularities in the operations of two key public sector enterprises in Jharkhand. The findings, which were tabled in the state assembly by Parliamentary Affairs Minister Radha Krishna Kishore on Monday, detail financial lapses and procedural failures in the Jharkhand State Building Construction Corporation Limited (JSBCCL) and the Jharkhand State Food and Civil Supplies Corporation Limited (SFCSCL).
JSBCCL: Unreturned Funds and Abandoned Projects
The CAG's test audit for the 2022-23 financial year revealed that JSBCCL failed to return Rs 60.95 crore received from user departments for 24 works that were subsequently abandoned. This substantial amount was retained in the company's personnel ledger for periods ranging from four to seven years, raising serious questions about financial accountability.
Furthermore, the audit highlighted poor planning decisions, such as constructing a degree college building near high-tension wires, which rendered an expenditure of Rs 12 crore completely unfruitful. Another notable case involved the permanent campus for Jharkhand Raksha Shakti University. Construction began in June with a completion target of May 2020, but work was abruptly closed in July 2021 following government directives. After incurring costs of Rs 12.1 crore, the building now lies idle and unused.
Delays in project handovers were also rampant. Out of 46 test-checked completed works, 37 were handed over to user departments with delays exceeding two years, while the remaining nine projects had not been transferred even four years after completion. The CAG attributed these issues to a severe lack of coordination between the user departments and the corporation.
SFCSCL: Payment Delays to Farmers Across Nine Districts
The audit of SFCSCL uncovered significant delays in payments to farmers during paddy procurement. In a test check of nine districts—Chatra, Dumka, East Singhbhum, Garwah, Hazaribag, Koderma, Palamu, Ranchi, and West Singhbhum—the procurement involved 10.07 lakh metric tonnes of paddy valued at Rs 1,889.48 crore.
The first instalment was paid to 92% of farmers with an average delay of 775 days, while the second instalment reached only 77% of farmers, with delays of up to 370 days. These prolonged payment periods have likely caused substantial financial hardship for the agricultural community.
Gram Panchayat Audit Reveals Administrative Lapses
In addition to the corporate audits, the CAG report examined gram panchayats and found administrative approval for 175 schemes—including road construction, drains, and pavers—was delayed without any recorded reasons in 63 checked panchayats. Moreover, six works worth Rs 65.88 lakh were split into 19 smaller projects, apparently to avoid the necessary sanctions from higher authorities.
The comprehensive CAG report underscores systemic issues in Jharkhand's public sector management, calling for urgent reforms to ensure transparency, efficiency, and accountability in the use of public funds.
