CAG pulls up DRDO for irregularities in new projects

Irregularities in new projects

The CAG has pulled up the DRDO pointing out "deficiencies" and "procedural irregularities" committed by it in taking up new projects and splitting sanctions for them to bring it within financial powers of the organisation head.

"Scrutiny of project sanctions issued by DRDO revealed procedural irregularities relating to misleading nomenclature of sanction issuing authorities, absence of data base of sanctions and splitting of sanctions," the CAG said in its report tabled in the Parliament today.

"The above audit findings underscore that the efforts of the Ministry of Defence to bring in transparency and objectivity in functioning of its departments remain unachieved as of now," the report said.

The CAG noted that financial powers of Director General, DRDO and Secretary, Defence Research and Development were enhanced to the range of Rs 25 crore to 50 crore and Rs 60 crore to 75 crore respectively and both these offices are held by one person only.

"Audit of sanctions revealed non-adherence with established norms and procedures for issue, circulation and recording of sanctions authorising expenditure out of public funds for various purposes," the report said.

On the splitting of sanctions, the Government auditor said, "We observed that after the enhanced delegation of financial powers in July 2010, sanctions were spilt up to bring them within the delegated financial powers of the DG R and D (DRDO Chief) that is up to Rs 50 crore in consultation with the Integrated Financial Advisor.

" "DRDO splitting such sanctions is tantamount to selecting financial advisor which clearly erodes the integrity and independence of financial scrutiny of expenditure proposals," the report said.

The CAG noted that in some cases, the cost of DRDO projects was brought down below Rs 50 crore by reducing the number of deliverables and curtailing its scope enabling the DG, DRDO to issue the sanction within his delegated powers.

... contd.

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