Bengaluru: Significant losses to the government exchequer have surfaced due to administrative lapses and avoidable expenditures in various government departments and public sector undertakings in Karnataka, according to a recent report by the Auditor General (CAG). This follow-up audit report for the financial year ending 2022 was presented in the assembly on Thursday, July 25 by Law and Parliamentary Affairs Minister H K Patil.
The report scrutinises 68 public sector enterprises, including four statutory corporations. Among these, 11 companies were found to be defunct at the time of the audit. Notably, the Karnataka State Handicrafts Development Corporation incurred a loss of Rs 12.78 crore due to excessive delays in the construction of its own building, resulting in unnecessary rental payments. The CAG highlighted this as an avoidable expenditure.
Furthermore, the report brought to light unnecessary procurement by the renowned Karnataka Soaps and Detergents Limited (KSDL), which produces sandalwood products. Despite a 2020 decision by KSDL’s Board of Directors to cease using lavender root oil in its fragrance products, 1,893 kg of lavender root oil was purchased in February 2021, costing Rs 4.87 crore. This procurement led to substantial losses for the exchequer, according to the CAG.
Another major industry, the Karnataka Renewable Energy Development Corporation, reported losses of Rs 2.64 crore. The audit revealed that these losses were due to inadequate supervision and poor management practices.
In the Hindu religious institutions under the Mujarai department, the CAG noted significant deficiencies in the management of encroachments on institutional properties. Despite the presence of numerous encroachment cases, there was no concerted effort to resolve them. Additionally, the report pointed out that C category temples have not prepared annual budgets for the past five years, indicating a lack of financial planning and oversight.
The forest department also came under scrutiny for its inadequate handling of criminal cases and forest encroachments. The report revealed that 22,173.15 acres of forest land remain encroached, with 3,382 pending encroachment cases. Additionally, the exchequer suffered losses of Rs 34.07 crore due to delays in transferring valuable forest products to the efficient government system.
The Bangalore Water Supply and Sewerage Board was found to have incurred an additional cost of Rs 2.63 crore due to incorrect pricing during water supply works. An inappropriate price index was used for controlling the price adjustment of steel pipes, resulting in unnecessary expenses that could have been avoided, as per the CAG report.
Lastly, the Public Works Department in Koppal was identified for misappropriating Rs 1.78 crore through fake work bills. These funds were siphoned off through fraudulent billing related to annual road maintenance works, highlighting significant lapses in the department’s financial management.
Overall, the CAG report underscores the need for stringent oversight and improved administrative practices across various government departments and public sector undertakings to prevent such losses in the future.
