Odisha: CAG Discovers Fund Mismanagement in OMBADC
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Synopsis
The CAG's audit reveals serious management issues within the OMBADC, highlighting unutilized funds, incomplete housing projects, and inadequate skill training for local youth in Odisha's mining areas.
Key Takeaways
- Significant fund mismanagement uncovered by CAG.
- Unutilized housing funds and incomplete projects.
- Major discrepancies in skill development training allocations.
- Inadequate health sector funding for mining districts.
- Essential screenings for silicosis not conducted.
Bhubaneswar, April 2 (NationPress) The Comptroller and Auditor General of India (CAG) has uncovered significant mismanagement of funds within the Odisha Mineral Bearing Areas Development Corporation (OMBADC), which was established in 2014 to facilitate tribal welfare and regional development in the areas affected by mining activities in the state.
Chief Minister Mohan Charan Majhi presented the CAG report titled “Management of Odisha Mineral Bearing Areas Development Corporation Funds” to the Odisha Assembly on Wednesday.
During the audit, the CAG revealed that the Chief Executive Officer (CEO) of Adhoc CAMPA had disbursed Rs 869.42 crore to the OMBADC on January 10, 2015, intended for various development initiatives in the mining-impacted regions.
However, the OMBADC failed to initiate the release of the remaining Rs 59.94 crore from the National Authority, CAMPA, New Delhi, until it was highlighted by the CAG.
Additionally, the OMBADC secured Rs 16,833.54 crore in funds from mining lessees as compensation for development efforts in mining-affected localities.
The CAG report indicated that the Steel and Mines Department did not take adequate measures to recuperate Rs 3,966.34 crore (including interest) owed as compensation by defaulting mining lessees who violated the Forest (Conservation) Act and Environmental Clearance guidelines, even six years after the deadline (as of January 2023).
Between 2017 and 2022, the CAG examined various projects funded by OMBADC across six sectors, including Housing, Skill Development, Drinking Water, Education, Health, and Nutrition in the mining-affected districts.
The audit found that proposals for 27 Piped Water Supply projects in 49 villages across Angul, Mayurbhanj, Jajpur, and Koraput districts were submitted, but despite spending Rs 1.73 crore, project work was stalled.
During on-site verification, the audit team noted overlapping villages in the implementation of drinking water supply projects, with 86 households in five villages in Keonjhar district having two Functional Household Tap Connections (FHTCs) each under different PWS projects, resulting in an unnecessary expenditure of Rs 12.45 crore.
The CAG also identified discrepancies in the funds allocated by OMBADC for housing projects in Odisha.
“As of March 2022, Rs 13.94 crore remained unutilized in the housing sector, which was not refunded to the OMBADC, breaching the decision of the Board of Directors (BoD). Out of the targeted 29,829 pucca houses to be completed by May 2018, 979 houses were still incomplete as of October 2022,” the report highlighted.
The CAG's report pointed out that out of 200 candidates enrolled in skill development training, 191 candidates (95.50%) were not from the identified villages of mineral-bearing areas.
Many eligible SC/ST youth from the mining-affected regions missed out on the skill development training benefits funded by OMBADC, with Rs 2.16 crore spent on training candidates from other areas.
“Of the total approved budget for the health sector, only Rs 229.98 crore (34.90%) was allocated to the mining blocks of four mining districts, with the remainder going to non-mining blocks. This indicates that compensation funds for health in mining blocks were lower, even though illegal mining had direct health implications for local residents,” the CAG asserted.
Furthermore, essential silicosis screenings for residents in mining areas could not commence in the four mining-affected districts.
