‘Fraudulent payment for incomplete drainages’

CAG pulls up PHED for ‘fraudulent’ and ‘excess’ payments

Morung Express News
Dimapur | March 31

The Comptroller and Auditor General (CAG) of India has pulled up the Public Health Engineering Department (PHED) for “fraudulent payment due to short/ non-execution of drainage works” under the Swachh Bharat Mission (Gramin). 

The CAG report for the year ending March 30, 2020 said that the Executive Engineer, PHED (Urban) Dimapur Division did not exercise due diligence to check correctness of quantities executed before passing bills for payment. This, it reported, resulted in fraudulent payment of Rs 90.54 lakh without actual execution of 2,338 metres of drainage works in 18 villages.

A photograph provided in the CAG report showing the actual construction of single latrines with attached bathrooms at Viswema village with incomplete specifications.

It informed that under the Swachh Bharat Mission (SBM) (Gramin), Rs 501.10 lakh was allocated to the Executive Engineer (EE), PHED (Urban), Dimapur for the purpose.

Out of the total fund of Rs 5.01 crore, Rs 4.03 crore was earmarked for implementation of SLWM including drainage. It was observed that the Department constructed 6,540 metre (m) of drainage with bricks in 35 villages, 29 involving an amount Rs 2.53 crore as departmental work.

Scrutiny of the Cash Books, Work Orders, Running Account Bills (RA Bills), MBs etc of 21 villages out of 35 villages revealed that 4,665 m of drainage (with bricks) was constructed and certified as complete (March 2019) by the Junior Engineer (JE), PHED and an expenditure of Rs 1.81 crore was incurred (March 2019). The completion of the work was also countersigned by the SDO, PHED and Executive Engineer.

However, Joint Physical Verification (JPV) in February 2021 by the Audit along with departmental officials, Village Council Chairman/WATSAN (Water and Sanitation) committee members and beneficiaries of 21 villages found that only in three out of 21 villages, construction of 600 m drainage with bricks with an expenditure of Rs 23.23 lakh was done as per work order. 

While in the remaining 18 villages, the JPV revealed that against the reported construction of 4,065 m drainage with an expenditure of Rs 1.57 crore, only 1,727 m with an expenditure of Rs 66.87 lakh, was actually constructed. This had resulted in short/ non-executions of 2,338 m.

In reply, the Government stated in January 2022 that the shortfall in drainage length was due to flash flood/natural calamity which washed off certain portion of the drainage and in some villages drainage work was underway at the time of verification.

In regard to non-construction of drainage, the Department stated that the drainage works were delayed and was underway at the time of verification. However, the works for both the shortfall and non-construction of drainage are completed, the CAG noted.

The CAG said that the reply is not acceptable as the works were certified by the JE PHED as completed (March 2019) and was also countersigned by the SDO and EE. “Moreover, the villages in Dimapur are located in plain areas which are not hilly and there is no sign of wash away or landslides. The Department also did not specify either the quantity or location of wash off area. Furthermore, no sign of wash off or work underway was seen and revealed during JPV,” it added.

Excess payment to Contractor
In another case involving the PHED, the CAG reported that the department made excess payment of Rs 1.23 crore to a contractor by allowing higher rate over the State Government approved rate (Action Plan) for construction of Community Sanitary Complexes and deviated from the approved action plans and specifications during actual implementation.

In October 2017, the Ministry of Drinking Water and Sanitation sanctioned Rs 35.13 crore as its share (1st instalment) for implementation of SBM (Gramin) during 2017-18. The Nagaland Government in December 2017 released Rs 39.03 crore (including State share) to the Chief Engineer-cum-Director, Water and Sanitation Support Organisation (WSSO), PHED.

Baseline Survey (BLS) was conducted only during 2012 for implementation of SBM (G) in Nagaland. Except in Viswema village, the CAG informed that the rate of Rs 1,80,000 for construction of CSC and Rs 10,800 for Individual Household Latrines (IHHL) were allowed for all the remaining 43 villages under EE, PHED (Rural), Kohima as per the GoN approved Action Plan. 

However, reasons for providing CSCs at higher rates i.e. @ of Rs 2.48 lakh per CSC in Viswema village was not available in records, it informed.

The CAG informed that the Director, WSSO in December 2017 released the fund (Rs 39.03 crore) to 12 PHED divisions, out of which an amount of Rs 11.13 crore was allocated to EE, PHED (Rural), Kohima.

Out of the allocated amount of Rs 11.13 crore, an amount of Rs 10.21 crore was earmarked for construction of 9,457 IHHLs. Out of which, Rs 9.36 crore was earmarked for construction of 8,664 IHHLs in 44 villages under EE, PHED (Rural), Kohima during 2017-18.

Out of the 44 villages, Viswema village (under Jakhama Block) was allocated Rs 1.84 crore for construction of 1,700 IHHLs. The village was declared as Open Defecation Free (ODF) village with effect from June 2018.

Scrutiny of records (August 2019) revealed that the Chairman, Viswema Village Council requested the Department in January 2018 to construct 200 CSCs in lieu of the allocated 1,700 IHHLs as the construction of IHHL in the previous years were not successful due to non-availability of land. 

Accordingly, the Director (WSSO) approved construction of 74 CSCs at the rate of Rs 2.48 lakh per unit instead of Rs 1.80 lakh approved by GoN for implementation of CSC in the State.

The work was awarded (January 2018) to M/s CONSURV, Kohima, Nagaland on the basis of recommendation submitted by the Viswema Village Council and the work order was issued (January 2018) by the EE to the firm. The Divisional Officers certified in the MBs and RA Bills that the work was completed (March 2018) and the contractor was paid Rs 1.84 crore.

However, the CAG said that the Director, WSSO, PHED “arbitrarily allowed” higher rate of Rs 2.48 lakh per CSC for Viswema Village which is in violation to the State Government approved Action Plan for implementation of SBM (G). This resulted in excess payment of Rs 50.32 lakh.

It was also observed that despite allowing a higher rate of Rs 2.48 lakh per CSC, the CSCs “lacked sanitation facilities as provisions for washing basin, urinal pan, water syntax with stand, etc., were not constructed/ provided.”

The JPV meanwhile found in July 2019 that in six out of 74 CSCs, WATSAN committee members and the Village Council revealed deviations from the approved drawing/ specifications. “It was noticed that provision for water supply connection was not made in all the CSCs inspected. The departmental officials, WATSAN committee members and the Village Council also certified that out of the 74 CSCs constructed, 40 CSCs have single toilet and the remaining 34 CSCs have either single toilet with attached bathroom or two toilets without any other facilities,” the CAG noted. 

It said that the deviations from approved design and specifications resulted in reduction of quantities in certain item of works viz. woodwork for roofing and doors, vent pipes, wash closet pan, etc., resulting in excess payment to the contractor to the tune of Rs 72.70 lakh 

The matter was reported to the State Government in August 2021, and a reply is awaited as of May 2022, the CAG said.
The CAG recommended that the State Government initiate departmental inquiry and fix responsibility against officials responsible for allowing higher rate and failure to exercise due diligence. The matter may be handed over to the investigative agencies, it advised.