'Irregular expenditure'? CAG finds lapses in Karnataka Construction Workers' Board

Bengaluru: The Karnataka Building and Other Construction Workers’ Welfare Board undertook "irregular expenditure” of Rs 258.80 crore with “several lapses” towards preventive health training and checkup for 8.49 lakh workers, the Comptroller & Auditor General (CAG) has found.

The CAG's performance audit report on the welfare of building and other construction workers was tabled in the Assembly on Wednesday.

The "unauthorised expenditure" happened when the BJP was in power.

In July 2020, during the Covid-19 pandemic, the Board proposed to the Cabinet preventive health training and checkup for five lakh registered construction workers. The finance department returned it seeking a detailed proposal.

In December 2020, the Board proposed entrusting the programme to three agencies (PCMH, Hindustan Latex Ltd and Apollo Clinic) without following the tender process. This, too, was rejected by the finance department for want of justification on bypassing the tender process.

The Board's secretary, in April 2021, sent a fresh proposal to the labour department to call for tenders to empanel the agencies for one year and sought approval to implement the programme on a pilot basis in Dharwad on pilot basis at a cost of Rs 8.86 crore.

Instead of inviting tenders, the Board split the work into 30 individual projects to "circumvent the need for a Cabinet approval". These projects were approved post-facto by the Board in June 2022 by quoting an order providing tender exemption during the first and second Covid waves for the supply of food and ration kits to labourers.

"Thus, award of contracts from September 2021 to May 2022 in contravention to the Act/Rules resulted in irregular expenditure of Rs 258.80 crore," the CAG said.

Ineligible workers

The audit also found that 42.50 lakh registered beneficiaries were "inadequately validated" before being entered into the database. Applications submitted on the Seva Sindhu portal for registration and renewal of beneficiaries lacked employment details. "As a result, ineligible workers like tailors, clerks, weavers and other professions were registered as construction workers and availed benefits," the CAG said.

Rs 433 cr to Slum Board

The Board released Rs 433.89 crore to the Karnataka Slum Development Board and Rs 8.74 crore to the Rajiv Gandhi Housing Corporation Ltd for housing scheme without obtaining the beneficiary list or details.

The CAG further pointed out that the Board did not have an internal audit wing to ensure compliance with rules and proper maintenance of registers.