The CAG in its report on Union Territories has pointed out irregularities in accounts and poor financial management resulting in loss of crores of rupees to the exchequers.
The Comptroller Auditor General carried out the audit of five UTs sans legislative assemblies – Chandigarh, Andaman & Nicobar Islands, Lakshadweep, Daman and Diu, and Dadra & Nagar Haveli, for the year 2014-15.
“Failure of the Drawing and Disbursing officer to periodically reconcile the accounts and furnish the bank reconciliation statements to the Pay and Accounts Office, as required under the Civil Accounts Manual, resulted in embezzlement of Rs 51.42 lakh,” the CAG said referring to Andaman & Nicobar Islands administration.
Similarly in the case of Lakshadweep, the government auditor said, the UT administration parked Rs 11.23 to 41.64 crore outside government accounts resulting in the loss of interest of Rs 8.16 crore.
The Chandigarh’s police department operated accounts by bypassing the constitutional provisions. As the IG, Chandigarh police, has been operating savings accounts in public and private sector banks into which the revenues, like application fees collected for recruitment, were deposited, it added.