New Delhi, July 10 (Inditop.com) India’s audit watchdog has pulled up the information and broadcasting ministry for “premature release” of Rs.7 crore ($1.4 million) as advance for constructing National Press Centre here and asked it to observe “due diligence” in financial matters.
“The release of advance of Rs.7 crore by the ministry to NBCC (National Buildings Construction Corporation) without ensuring the readiness of the corporation to undertake the work led to premature cash outgo from the Consolidated Fund of India (CFI),” the Comptroller and Auditor General (CAG) of India said in its report released Friday.
The ministry in January 2005 approved a proposal to set up the NPC for the print and electronic media at a cost of Rs.35 crore. The administrative approval for the project was granted in April the same year.
The ministry zeroed in on the NBCC for constructing the NPC and inked an MoU with it in February 2006.
Even before receiving statutory approvals from bodies like the New Delhi Municipal Council (NDMC), the Central Public Works Department (CPWD) and the Delhi Urban Arts Commission (DUAC), the ministry released an interest free advance of Rs.7 crore in March 2006 to NBCC as 20 per cent of the project cost, to be adjusted against the final bill, the report said.
“The ministry needs to ensure due diligence in determining the terms of the agreement so that the agreements are made strictly in accordance with the codal provisions,” the report added.
The CAG also asked the ministry to ensure that the release of funds from the CFI are made keeping in view the capacity and readiness of the implementing agencies to execute the project within the stipulated time frame.
The ministry had stated in October 2007 that the release of Rs.7 crore to NBCC was in accordance with the MoU.
The CAG, however, found the reply wanting, saying it was “silent on the aspect of setting of the terms of the MoU which were faulty and not in consonance with the codal provisions”.
