Audit confirms work code scam at BBMP

Audit confirms work code scam at BBMP

The audit report, available with Deccan Herald reveals that reckless issue of work codes has resulted in additional financial burden on the bankrupt Palike. Contracts awarded in 2009-10 were at least 178 per cent higher than those issued in 2008-09, the report stated.

The work code system was introduced to ensure judicious utilisation of funds allotted for various projects, avoiding repetition of bills, and speedy execution of the work. The report was submitted to the commissioner in January first week.

It has been found that work codes were issued for the projects worth Rs 2,000 crore far in excess of the budgetary allocation. The fiscal discipline of the Palike, thus went haywire.

What's more astonishing is that the commissioner's permission was not sought while issuing work codes.

The codes were issued for the projects not mentioned in the budget. The deputy controller and assistant controller have issued codes to 935 projects, totalling Rs 200 crore, without the consent of the commissioner.

The Karnataka Municipal Corporation Act forbids any alteration in the budgeted expenses. However, work codes have been issued to projects, whose cumulative outlay far exceeds the budget figures.

Junior officials involved

Ramesh Reddy, the assistant controller of Jawaharlal Nehru National Urban Rural Mission (JnNURM) and Raghu, deputy controller (finance) reportedly committed irregularities keeping their higher-ups in the dark.

The report observed that the project costs had been escalated in several instances. The commissioner had allowed 23 emergency projects worth Rs 1.1 crore in Rajagopalnagar and Chokkasandra, but the outlay has gone up to Rs 11.42 crore while issuing work codes. Amazingly, the additional sum of Rs 10.32 crore has been sanctioned.

It has come to light that the commissioner was ‘misguided’ in according approval. The auditors had earlier detected issue of work codes exceeding the budgetary allotment by Rs 1,500 crore in 2008-09.

Another startling finding is that the files pertaining to issue of work codes do not bear inward/outward numbers, or even the official seal.

*Work codes far in excess of budgetary allotment
*Codes issued for projects worth Rs 2,000 cr
*Cost of projects escalated manifold
*Records created outside BBMP office

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