Financial accountability, transparency goes for a toss in lots of PSUs in Kerala

Express News Service

THIRUVANANTHAPURAM:  Scant regard for monetary accountability and transparency is the ‘hallmark’ of a number of state public sector undertakings (PSUs), regardless of inviting criticism from the highest audit establishment. Though successive governments have been adopting a lenient strategy in direction of PSUs by pumping in funds, lots of them don’t care to submit annual monetary statements to the Registrar of Companies (ROC), it’s learnt.

Another worrying pattern is that many enterprises give little consideration to the Comptroller and Auditor General of India’s (CAG) audit observations on their accounts.

On July 20, the finance division issued a round warning PSUs in opposition to not finalising annual accounts and inaction on audit observations. Defaulters won’t get authorities grants and funds, the division mentioned. It is learnt that related circulars issued in earlier years didn’t get an excellent response.

“The circulars help the government save its face before the CAG, while erring organisations continue to get funds, thanks to political pressure, ” mentioned a supply. According to the information from the Bureau of Public Enterprises beneath the state authorities, 82 of the overall 131 lively public enterprises, together with corporations and companies, had audit arrears in 2021-22.

Delay in finalising accounts could end in fraud: Report

Four enterprises had a backlog of six years and 52 enterprises for 2 years and above. Only 34 enterprises had finalised accounts to facilitate the statutory audit by the CAG. In May this 12 months, the apex committee of PSUs requested all enterprises to make sure that their accounts are updated and that motion is taken on a minimum of 50% of the pending audit observations by June 30, 2023. The committee had warned motion in opposition to finance officers of erring PSUs, in addition to stopping funds. A chilly response to the committee’s course compelled the finance division to challenge the most recent warning, it’s learnt.

The administrative management of 131 state authorities enterprises is vested with 34 authorities departments. The bureau’s information for 2021-22 confirmed that the state authorities’s complete funding, together with paid-up capital and time period loans, in these enterprises was Rs 25,233.91 crore. As many as 28 enterprises obtained Rs 1,753.08 crore as subsidies and grants from the state authorities in 2021-22. A complete of 11 enterprises obtained Rs 1,946.86 crore from the central authorities.

All PSUs are mandated to submit annual monetary statements to the ROC and annual accounts to the CAG. According to the CAG report on PSUs for the 12 months ending March 2019, solely 14 of the overall 117 working corporations submitted their accounts in time. Out of 4 statutory companies, solely the Kerala Financial Corporation submitted accounts in time. The KSRTC’s accounts had been pending for 4 years. The report criticised the ROC for not taking motion in opposition to corporations that didn’t submit statements. The delay in finalisation of accounts could result in fraud and leakage of public cash aside from violation of statutes, the report mentioned.

The report additionally flagged the poor normal of accounts submitted by the PSUs. 141 situations of non-compliance to the Accounting Standards had been reported from the submitted accounts, it mentioned.

THIRUVANANTHAPURAM:  Scant regard for monetary accountability and transparency is the ‘hallmark’ of a number of state public sector undertakings (PSUs), regardless of inviting criticism from the highest audit establishment. Though successive governments have been adopting a lenient strategy in direction of PSUs by pumping in funds, lots of them don’t care to submit annual monetary statements to the Registrar of Companies (ROC), it’s learnt.

Another worrying pattern is that many enterprises give little consideration to the Comptroller and Auditor General of India’s (CAG) audit observations on their accounts.

On July 20, the finance division issued a round warning PSUs in opposition to not finalising annual accounts and inaction on audit observations. Defaulters won’t get authorities grants and funds, the division mentioned. It is learnt that related circulars issued in earlier years didn’t get an excellent response.googletag.cmd.push(perform() googletag.show(‘div-gpt-ad-8052921-2’); );

“The circulars help the government save its face before the CAG, while erring organisations continue to get funds, thanks to political pressure, ” mentioned a supply. According to the information from the Bureau of Public Enterprises beneath the state authorities, 82 of the overall 131 lively public enterprises, together with corporations and companies, had audit arrears in 2021-22.

Delay in finalising accounts could end in fraud: Report

Four enterprises had a backlog of six years and 52 enterprises for 2 years and above. Only 34 enterprises had finalised accounts to facilitate the statutory audit by the CAG. In May this 12 months, the apex committee of PSUs requested all enterprises to make sure that their accounts are updated and that motion is taken on a minimum of 50% of the pending audit observations by June 30, 2023. The committee had warned motion in opposition to finance officers of erring PSUs, in addition to stopping funds. A chilly response to the committee’s course compelled the finance division to challenge the most recent warning, it’s learnt.

The administrative management of 131 state authorities enterprises is vested with 34 authorities departments. The bureau’s information for 2021-22 confirmed that the state authorities’s complete funding, together with paid-up capital and time period loans, in these enterprises was Rs 25,233.91 crore. As many as 28 enterprises obtained Rs 1,753.08 crore as subsidies and grants from the state authorities in 2021-22. A complete of 11 enterprises obtained Rs 1,946.86 crore from the central authorities.

All PSUs are mandated to submit annual monetary statements to the ROC and annual accounts to the CAG. According to the CAG report on PSUs for the 12 months ending March 2019, solely 14 of the overall 117 working corporations submitted their accounts in time. Out of 4 statutory companies, solely the Kerala Financial Corporation submitted accounts in time. The KSRTC’s accounts had been pending for 4 years. The report criticised the ROC for not taking motion in opposition to corporations that didn’t submit statements. The delay in finalisation of accounts could result in fraud and leakage of public cash aside from violation of statutes, the report mentioned.

The report additionally flagged the poor normal of accounts submitted by the PSUs. 141 situations of non-compliance to the Accounting Standards had been reported from the submitted accounts, it mentioned.