Finance ministry’s audit finds ‘serious irregularities’

Following this, the Controller General of Accounts (CAG) under the department of expenditure in the finance ministry has issued a fresh set of instructions to all principals or chief controller of accounts (PCCAs or CCAs) to adhere to prescribed standards of financial propriety.

“No cheques are to be issued for amounts exceeding Rs 25,000. E-payments may be made to all parties/contractors,” said the instructions. It said that mis-classification and diversion of funds should be strictly avoided.

CAG has given a strict warning that the tendering process must be meticulously observed as per the guidelines issued by the department of expenditure and the Central Vigilance Commission.

Open tenders to be called for works costing Rs 5-10 lakhs may be strictly complied with, it said, citing existing norms in this regard. Outsourcing or hiring of manpower is not to be done without specific approval of the integrated financial division (IFD).

The various provisions as laid down in the General Financial Rules, 2005 relating to the same must be strictly adhered to, the directive said.

Similarly, rules and procedures regarding hiring of vehicles should be followed and specific approval of IFD should be obtained wherever required before incurring the expenditure, it said.

Further they were asked to commence e-procurement through the central public procurement in respect of all procurement with estimated value of Rs 10 lakhs or above.” Regarding payments for services rendered or supplies made, it emphasised that funds should be released only after the services have been rendered or supplies made. “For purpose of approval and sanctions, a group of works which form one project, shall be considered as one work,” the Controller General of Accounts order said. It strongly suggested that performance of internal audit wing in all the offices needs improvement.