TDB President Acknowledges Board's Role in Audit Report Issues
Travancore Devaswom Board (TDB) president K Jayakumar has openly admitted that the lapses highlighted in the audit report concerning the financial accounts of the Global Ayyappa Sangamam were due to mistakes on the part of the Board. Speaking candidly, Jayakumar explained that the errors primarily stemmed from officials failing to respond to the auditor's questions in a timely manner, coupled with a significant communication breakdown with the auditing team.
MoU and Payment Dispute with IIIC
Jayakumar detailed a peculiar situation involving a Memorandum of Understanding (MoU) worth Rs 8 crore signed with the Indian Institute of Infrastructure and Construction (IIIC), which operates under the Uralungal Labour Contract Cooperative Society and managed the event. Although IIIC submitted a bill for Rs 7.04 crore, the TDB informed them that only Rs 4.99 crore would be paid. When questioned about whether IIIC accepted this reduced payment, Jayakumar responded that they had no other option, and he expressed doubt that IIIC would approach the court over the matter.
Audit Report Not Considered Final
Jayakumar emphasized that he does not consider the current audit report to be final, believing that numerous corrections are necessary. The board meeting held on Tuesday involved a detailed discussion of the audit report. Although the report was received earlier, it was submitted to the court as the deadline set by the court had passed. An affidavit has not been submitted yet but will be presented when the court revisits the matter on February 27.
Procedural Failures and Communication Breakdown
The standard procedure typically involves auditors notifying the board of any issues, with the board then responding to them. Some responses are accepted while others are rejected. However, this process did not occur this time, and Jayakumar clarified that it was not the auditor's fault but rather a mistake on the part of TDB. The lack of timely responses to the auditor's questions and inadequate communication directly resulted in some adverse remarks in the audit report.
Immediate Corrective Actions
Jayakumar stated that certain procedural steps were either not taken or not communicated to the auditor, and these will be rectified. Providing accurate responses to the questions will change many aspects of the current report. The board meeting decided to make immediate corrections to the errors. A special team led by the devaswom commissioner has been formed to complete the necessary actions within 10 days. This team will engage with the auditor and the contracting company to rectify the errors and ensure accuracy in all bills related to the work. The actual situation, including claims such as 4,000 people being fed, will be thoroughly examined.
Specific Errors and Financial Adjustments
The report mentions that Rs 8 lakh was paid to the music troupe Nandagovindam Bhajans, who did not perform at the event. Jayakumar noted that this was an error based on the information the auditor received, and such mistakes due to the board's oversight will be corrected. The previous board had decided to limit the Ayyappa Sangamam expenses to Rs 4.99 crore, and this decision will be implemented. The Rs 3 crore advanced by the board has been returned to the account.
Sponsorship Shortfalls and Future Steps
Sponsorships expected from various sources did not materialize as anticipated. A total of Rs 3.85 crore was received in sponsorships, which is Rs 1 crore short of expectations. A promised Rs 1 crore from the Adani Group is still expected. However, Jayakumar assured that the board will not use its own funds to cover this shortfall. A new audit report will be submitted to the court to reflect the corrections.
Contract Investigation and Justification
The contracting company was informed that only Rs 4.99 crore would be paid, but they did not agree to this, as they submitted a bill for Rs 7.04 crore. It will be investigated whether the contract was awarded to IIIC without a tender and whether they subcontracted through a tender. The previous board signed an agreement to spend Rs 8 crore, and the contract was given to IIIC due to their experience in organizing such events, Jayakumar explained, highlighting the rationale behind the selection.
