Sunday, July 29, 2007

Performance of Backward Classes and Minorities Finance Corporation "abysmally low" -- CAG report

Re -

The performance of Madhya Pradesh Pichhra Varg Tatha Alpsankhyak Vitta Evam Vikas Nigam (State Backward Classes and Minorities Finance and Development Corporation) failed to touch its targets during the five year period 2001-2006.

This has been highlighted by the Comptroller and Auditor General of India (CAG) in its report tabled in the State Assembly today. The CAG report says that the achievement of targets by Madhya Pradesh Pichhra Varg Tatha Alpsankhyak Vitta Evam Vikas Nigam during the period in question was "abysmally low" in respect of all the schemes implemented by the Company.
The CAG has pointed out that delay in sending utilisation certificates to financing agencies resulted in avoidable interest payment of Rs.5.11 crore. Though the Company has been extending financial assistance for over 12 years for the economic upliftment of targeted population, no survey of beneficiaries has been conducted to formulate a base for covering all the beneficiaries in a phase manner.

Loans of Rs.6.04 crore and Government share of project cost (Rs.4.45 crore) meant for disbursement to beneficiaries were diverted for repayment of instalments due to NBCFDC and NMDFC resulting in denial of assistance to needy beneficiaries. Improper maintenance of records coupled with absence of internal audit, facilitated misappropriation of cash in five districts. Inspite of misappropriations, the Company has not taken any corrective/punitive action.

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