Karnataka govt issues circular on prudent management of public funds

Bengaluru: Chief Secretary Rajneesh Goel has issued a circular laying down directives for “accountability and prudent management of public funds” at state-owned companies, local bodies, universities and medical colleges.

The circular comes in the wake of the embezzlement of taxpayers’ money  to the tune of several crores of rupees at the Maharshi Valmiki ST Development Corporation Ltd. The circular, however, does not mention this.

Managing directors or CEOs of entities should take up comprehensive reviews of banking operations and verify details of all term deposits. Every organisation should maintain a separate register for all deposits. The register, kept under safe custody, should be produced before the internal auditor every month, the circular stated.

Stating that organisations should have a “robust risk management framework”, the circular said all term deposits should be invested in joint accounts.

Heads of the administrative departments (secretaries) should ensure compliance.

Directors nominated by the government to state-run companies should ensure that board meetings are held at least once in a quarter. Also, nominated directors have to ensure that audit committees are constituted and regular meetings are held.