The Comptroller and Auditor General of India (CAG) has found fault with Goa Industrial Development Corporation (GIDC) for giving gold coins, as mementos, to its employees in commemoration of the Golden Jubilee of the institution and causing a loss of Rs 19.84 lakh to the state exchequer.
The report tabled in the state assembly on Friday said the Managing Director (MD) of GIDC approved (in August 2016), an expenditure of Rs 20.75 lakh for award of mementos to the staff (both regualar and contractual) in the form of gold medalilion of two grams worth Rs 7035 each to honour the sincere efforts of the staff commemorating the golden jubilee year of GIDC.
“Though MD had no power to authorise such nature of expenditure as per delegation of powers of GIDC, the expenditure was approved by the MD with a remark that the proposal may be placed before the Board for its approval and ratification. However, the gold coins were procured and distributed. The proposal was placed before the Board after over a year in its 352nd meeting held on October 17, 2017, and an expenditure of Rs 19.84 lakh was ratified ex-post facto,” the report said.
The report said the distribution was ‘in violation of the letter and spirit of financial propriety’ as envisaged under the General Financial Rules for spending public money.
“Awarding gold coins on grounds of efficiency goes against the principles of financial propriety and is diversion of resources better employed for development of infrastructure,” the report said.
The report said as per the last finalised account of the corporation (2015-16), it had a deficit of Rs 2.31 crore and its accumulated surplus had declined from Rs 56.12 crore to Rs 53.80 crore.
The report stated that the matter was sent to the government in July last and reply was awaited.