Rs 80cr minority aid embezzled

Published Jan 2, 2014, 1:08 pm IST
Updated Mar 19, 2019, 4:11 am IST
Records pertaining to disbursement of more than Rs 80 crore missing from the AP Minority Finance Corp.

HyderabadRecords pertaining to disbursement of more than Rs 80 crore as post-matric scholarships to minority students have gone missing from the AP State Minority Finance Corporation.

An internal audit conducted by the state government for the financial years 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12 revealed several startling facts about the financial mismanagement in the corporation.


The corporation has failed to produce information with regard to financial transactions for the above years amounting to several hundred crores.

The report submitted to the state government by the auditors, which is with this newspaper, revealed that the officers of the corporation have maintained multiple bank accounts and indulged in premature conversion of term deposits and placing of term deposits in violation of the government’s orders.

The auditors observed that all the financial transactions indicate wilful negligence and connivance of the individuals of the corporation to fraud as could be observed from the fact that unauthorised persons had been allowed to deal with the resources of the APSMFC.


Auditors find no account of funds

Hyderabad: Auditors found that Rs 19.86 crore was released in 2009-10 for scholarships, but details of the bank account in which the total released amount was placed was not known.

Similarly, the particulars of disbursement of Rs 25 crore as additional fund for the same year are also not available.

The auditors in their report said the corporation did not have information of students to whom the scholarships have been issued for the above four years in a majority of cases.

The state government had ordered the internal audit after the Rs 59-crore scam in the corporation in October 2012 when an official of the corporation had allowed private persons to withdraw the FDs from various banks.


According to the audit reports, the fixed deposit register was maintained like an ordinary register nd no signature of concerned officer was found in the FD register. 

Allowing unauthorised persons to authorise and execute financial transactions of the APSMFC showed there was lack of accountability in dealing with public funds, the report added.

The auditors said the corporation had not followed the proper selection procedure for beneficiaries of the various schemes, and there was no verification process.

This raises doubts about the genuineness of selection and implementation of the programmes. 


Location: Andhra Pradesh