The State Finances Audit Report of the Comptroller and Auditor General of India (CAG) has revealed that 28 accounts of 16 working Public Sector Undertakings (PSUs) in the State were in arrears for one to four years as on September 30, 2020.
According to the CAG, out of the total arrears of 28 accounts for 2019-20, Meghalaya Transport Corporation (MTC) and Forest Development Corporation of Meghalaya Ltd have maximum accounts in arrears for four years each.
In addition, there were arrears of two accounts (2018-19 and 2019-20) as on September 30, 2020 in respect of the sole non-working PSU (Meghalaya Electronics Development Corporation Limited), which became defunct in 2006 and had been in the process of liquidation since June 2011.
The CAG said that the State government needs to expedite the liquidation process to wind up the said PSU.
The CAG stated that the Committee of Public Undertakings (COPU) in its tenth report which was presented to the Legislature in November 5, 2020 also recommended that the process of liquidation of the non-working PSU should be completed forthwith, within six months.
The State government has invested an amount aggregating to Rs 340.79 crore in 16 working PSUs.
The CAG stated that of these – equity to three PSUs to the tune of Rs 87.21 crore was given, loans amounting to Rs 31.97 crore were given to three PSU and grants of Rs. 221.61 crores was given during the years for which the accounts of these PSUs had not been finalised.
“In the absence of finalisation of accounts and their subsequent audit, it cannot be verified if the investments made and the expenditure incurred have been properly accounted for and the purpose for which the amount was invested was achieved or not,” the CAG stated.
It also said that the timely finalisation of accounts is important for the State government to assess the financial health of the PSUs, avoid financial misappropriation and mismanagement and ensure safety of government equity.
“Persistent delay in finalisation of accounts is fraught with the risk of fraud and leakage of public money going undetected apart from violation of the provision of the Companies Act, 2013,” the CAG stated.
