Deccan Chronicle 11.01.2011
BBMP squandered public money: DAG
January 11th, 2011
Jan. 10:
Though the BBMP has been promising the moon by presenting a huge budget
outlay to the gullible citizens of Bengaluru, the Deputy Accountant
General (DAG) has come down heavily against them for their poor cash
management system. Ever wondered why the city development was
proceeding at a snail’s pace? According to the report by DAG, the funds
borrowed for developmental work by the BBMP were being irregularly
diverted for payment of salary and other purposes.
Deputy Accountant General (Local Bodies Audit and
Accounts) has revealed that the BBMP has failed in its cash management
system, with its budget during the period 2008-10. It unearthed lapses
like financial indiscipline and irregular diversions of borrowed money.
The AGI has said that the BBMP’s budget for the year 2008-09 and
2009-10 were unrealistic, with a huge gap of 20 per cent between
expected receipts and expenditure, according to the performance review
report submitted to the urban development department.
The report raised doubts about squandering of public
money, especially with the opening of individual accounts, which were a
stark violation of norms. “All the bank accounts operated by the BBMP
should have been in the name of the commissioner, or an official
designated for the purpose. No account should be opened in the names of
individuals. However, a test check of records disclosed that four bank
accounts were maintained under individual names. In the absence of cash
book, the audit could not ensure whether all the bank transactions were
genuine,” said the report.
The report also pointed out the difference, ranging from `
11.1 lakh to Rs 15.9 crore between the bank balance as per the BBMP
accounts and statements furnished by banks at the end of 2009 for 15
bank accounts maintained at the BBMP head office. BBMP’s policy of
borrowing money to run their affairs instead of mobilizing funds, is a
testimony to their lack of financial discipline. BBMP took loans without
valid reason and their borrowings amounted to Rs 2,052 crore, says the
report.
As per the provisions of the Karnataka Financial Code
(KFC) every BBMP office must maintain a cashbook for recording the
financial transactions and all transactions are to be recorded in the
register. However, BBMP, which was operating with over 600 bank
accounts, had failed to maintain the cashbook for bank accounts,
amounting to violation of KFC.