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| Irony! Rs 399 cr remained unutilized in redundant bank accounts | | Unspent money parked for years, accumulation tripled from 2014 to 2019 in J&K | | Early Times Report
jammu, Mar 26: The alleged mismanagement of bank accounts in various government departments of J&K resulted in the lapse of hundreds crores of rupees and accumulated balances, raising a question about the way the public money was parked for years in violation of rules and without any compunction.
Documents in possession of Early Times reveal that the government issued instructions from time to time on consolidation and streamlining of utilisation of funds retained in bank accounts of DDOs but these instructions were not strictly adhered to by various government departments. Only a meager amount of Rs 64.10 crore was transferred from the redundant bank accounts of DDOs from December 2016 to February 2017. The accumulated balance in 1,138 bank accounts of 131 Drawing and Disbursing Officers of three Government Departments, Public Works, Revenue and Rural Development, increased from Rs 116.41 crore to Rs 399.94 crore during the period from 2014 to 2019. Increase in the accumulated balances was due to undisbursed funds of relief/ compensation to the victims of militancy, natural disasters, improper planning and non-completion of schemes, overstatement of expenditure in the Utilisation Certificates, retention of funds, retention of statutory deductions and land compensation outside the Government Account.
Documents reveal further that the procedure for drawal of funds from the Treasury by the Drawing and Disbursing Officers (DDOs) is regulated by the provisions of the Jammu and Kashmir Financial Code (JKFC). As per Rule 2-27 of the JKFC, the DDOs are required to present bills/ claims to the Treasury Officers (TOs) for drawal of funds required. The funds are then credited by the Treasury to the Bank Account of the DDOs who in turn make payments by issuing Bank Advices for crediting the payments directly into the bank account of the beneficiaries.
The Financial Rule 2-33 of the JKFC, prohibited the withdrawal of funds from the Treasury by DDOs for investment or deposit elsewhere without the consent of the Government. However, where permission to open a separate account is given, the rules provide for the opening of an account with the Jammu and Kashmir Bank Limited (JKBL) and where there is no such arrangement, with the Post Office Savings Bank or any other bank with the prior approval of the Finance Department.
Documents reveal further that Compliance Audit on Management of Bank Accounts in Government Departments was conducted from February 2019 to February 2020 to assess whether the prescribed Rules and procedures relating to financial matters as well as the circulars/ instructions issued by the Finance Department from time to time have been complied with by the DDOs. Emphasis was given to assess the compliance by the DDOs to the government instructions of 9 December 2016 regarding consolidation of and reduction in the number of Bank Accounts in Government Departments.
However, the accumulation of public money in redundant bank accounts has resulted in the non-utilization of more than Rs 390 crore in the past five years. |
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