Management of investment of fund of Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) suffering from deficiencies
GN Bureau | November 24, 2016
The Comptroller and Auditor General (CAG) detected non-recovery of unutilized grant and interest thereon for e-Bharat -Project from National Institute of Smart Government (NISG), Hyderabad.
“DeitY gave an advance of Rs 10.50 crore to NISG for execution of e-Bharat Project Preparation Facility. As NISG failed to execute the project, DeitY diverted an amount of Rs 3.36 crore for another World Bank assisted project “India e-Delivery of Public Services” again to be executed by the NISG and Rs 6.36 crore was refunded by NISG to DeitY leaving behind an amount of Rs 0.78 crore of unutilised grant with the NISG. Interest on unutilised grant amounting to Rs 7.77 crore upto January 31, 2016 has also not been recovered by DeitY from NISG,” said the CAG report.
The report on union government (communications and IT sector) said: “Controller of Communication Accounts (CCA), Rajasthan Telecom Circle allowed front loaded subsidy of Rs 71.49 crore on the basis of claims submitted by M/s Tata Teleservices Limited (TTSL) during 2008-2010 without conducting any check regarding genuineness of Customer Application Forms (CAFs) before disbursement of subsidy. Further, CsCA at Odisha and Kerala circles paid subsidy on duplicate claims amounting to Rs 0.82 crore to BSNL and Reliance Communication Limited.”
On management of investment of fund of Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI), the CAG report said that it “suffered from deficiencies like incorrect assessment of investable funds on daily net accretion basis and also monthly investable fund basis. The delay in Investment resulted in loss of potential return to the tune of Rs 984 crore. Delay in reinvestment of returns from Government of India Special Security Floating rate Bond, non-adherence to Insurance Regulatory and Development Authority (Investment) Regulations and instances of non-availing of Cenvat credit were also noticed”.
It also noted that the “lack of effective action at Head Post Offices and Divisional Offices in Andhra Pradesh, Bihar and Jharkhand Postal Circles resulted in non-realisation of 1,364 dishonoured cheques valued at Rs 11.62 crore received from state government towards payment of wages under Mahatma Gandhi National Rural Employment Guarantee Scheme”.
On the management of vacant plots of land in Department of Posts, the CAG report said that the department did not assess the actual requirement before acquiring/purchasing the plots of land.
The Department of Posts “was in possession of 472 vacant freehold plots measuring 6.77 lakh square meters having value of Rs 209.55 crore as of December 2015. Besides, 100 plots measuring 4.08 lakh sq. meter acquired on lease as far back as in 1978 for construction of post office buildings/staff quarters were still lying vacant and an amount of Rs 3.37 crore was paid towards lease rent upto 2014. 241 plots of 3.24 lakh square meter acquired at Rs 13.94 crore were encroached. Failure of the department in taking adequate precautionary measures not only resulted in encroachment but also led to unnecessary litigation which could have been avoided”.
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