CAG Report: Assam Govt Invests Rs 1,970 Cr in SPSEs with Pending Accounts, Urges Fund Freeze
The Comptroller and Auditor General (CAG) of India has flagged significant concerns over the Assam government’s investment of over Rs 1,970 crore in State Public Sector Enterprises (SPSEs) with accounts in arrears for periods ranging from one year to 16 years. The report, tabled in the Assam Assembly on Friday, highlights the financial mismanagement and risks of fraud in these enterprises.
According to the CAG report for the year ending March 31, 2023, the Assam government invested Rs 1,976.37 crore in 19 SPSEs, despite their accounts being overdue. Nine of these enterprises received Rs 1,939.60 crore, accounting for over 98% of the total funds. Notably, the Assam Hills Small Industries Development Corporation Ltd has not finalized its accounts for 16 years, with the last accounts completed for 2006-07.
Other major SPSEs with delayed accounts include Assam Tea Corporation Ltd (8 years), Assam Livestock and Poultry Corporation Ltd (5 years), and Assam State Development Corporation for Scheduled Castes Ltd (5 years). Four companies with accounts overdue for five years or more received Rs 692.21 crore in budgetary support, with Rs 614.13 crore allocated for employee salaries, adding strain to the state budget.
The CAG report emphasized that the absence of audited accounts raises concerns about the proper utilization of funds and increases the risk of fraud and public money leakage. It recommended that the Assam government establish a special cell under the Finance Department to expedite the clearance of pending accounts. Additionally, the report suggested outsourcing account preparation in cases of staff shortages and taking punitive action against SPSE managements.
The CAG advised the state government to withhold further financial assistance to SPSEs until their accounts are updated. This move aims to ensure accountability and prevent further misuse of public funds.
The findings underscore the need for stringent financial oversight and reforms in Assam’s public sector enterprises to safeguard state resources and promote transparency.
