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PAC for CAG access to 3,600 military canteens
Ending the protracted tussle between the CAG and the Armed forces over audit of military canteens, the Public Accounts Committee (PAC) has directed the three services to open its accounts for scrutiny by the top auditor. The Armed forces — Army, Navy, Air Force — had been opposing a CAG audit of the accounts of the 3,600 military canteens having an annual turnover of Rs8,500 crore.
The PAC, which tabled its report in the Lok Sabha on Wednesday, also recommended the Sixth Pay Commission to the entire civilian staff working in the canteens. The PAC submitted another report too slamming the “gross irregularities” in the supply chain on rations to jawans in the Army and seeking the revamping of the entire system.
“There were misconceptions on audit demand of CAG in the three services. Now all issues are settled. There were some misconceptions on the definitions of public money. We made them convince on the issue. Defence Ministry will get back to PAC with Action Taken Report soon,” said PAC Chairman Murli Manohar Joshi, while addressing the media after tabling of the reports.
The CAG has been seeking to audit accounts of the Unit Run Canteens (URCs) on grounds that money is transferred from Consolidated Fund of India in the form of qualitative discounts. The Armed forces had opposed it claiming that URCs are run by non-public fund. Last year, the PAC had summoned the three service chiefs to settle the tussle between them and the auditor.
“The Committee is dismayed to note that Audit was denied access to records of the URCs by the Army Headquarters in spite of repeated requests on ground that URCs are regimental units and are being run from non-public fund. What is more intriguing is the fact that such denial was made despite directions of the Defence Ministry to make records of the URCs available for audit,” the PAC said in its report.
In its other report, the PAC pointed out “several glaring deficiencies and inadequacies” in the supply chain management of rations in the Army. Decrying that 74 per cent of fresh vegetables and fruits issued to units by supply depots were not in accordance with prescribed norms, the Committee said, “There are serious anomalies in receipt and supply of vegetables in one station alone.”
The PAC has observed “shortcomings” in procurement procedures of Army Service Corps, issue of rations to troops even after expiry of original Estimated Storage Life (ESL), highly non-competitive procurement of fresh rations and deviation from the laid down guidelines.
The Committee said it was startled to know “ESL of a number of dry rations was extended by an army lab beyond its permissible limit.”
“Still worse, these dry rations were consumed by the troops even six to 28 months after expiry of their normal ESL,” it said.
The PAC report noted that out of 343 annual procurement contracts for dry rations for troops, 80 were cancelled due to non-performance of the contracts.
The Committee expressed its concern on the functioning of Management Information Systems Organisation (MISO) in Army headquarters saying it was “far from satisfactory and leaves much to be desired.”
PAC: Check leakage of defence liquor
The PAC also expressed it concern over defence liquor finding its way to the civilian market and asked the Defence Ministry to take “stringent action” against delinquent personnel who are involved.
“Concerned over leakage of defence liquor in civilian market, the committee has recommended stricter controls and stringent disciplinary action against delinquent personnel,” the PAC said in a Press release here after tabling its two reports.
Ending the protracted tussle between the CAG and the Armed forces over audit of military canteens, the Public Accounts Committee (PAC) has directed the three services to open its accounts for scrutiny by the top auditor. The Armed forces — Army, Navy, Air Force — had been opposing a CAG audit of the accounts of the 3,600 military canteens having an annual turnover of Rs8,500 crore.
The PAC, which tabled its report in the Lok Sabha on Wednesday, also recommended the Sixth Pay Commission to the entire civilian staff working in the canteens. The PAC submitted another report too slamming the “gross irregularities” in the supply chain on rations to jawans in the Army and seeking the revamping of the entire system.
“There were misconceptions on audit demand of CAG in the three services. Now all issues are settled. There were some misconceptions on the definitions of public money. We made them convince on the issue. Defence Ministry will get back to PAC with Action Taken Report soon,” said PAC Chairman Murli Manohar Joshi, while addressing the media after tabling of the reports.
The CAG has been seeking to audit accounts of the Unit Run Canteens (URCs) on grounds that money is transferred from Consolidated Fund of India in the form of qualitative discounts. The Armed forces had opposed it claiming that URCs are run by non-public fund. Last year, the PAC had summoned the three service chiefs to settle the tussle between them and the auditor.
“The Committee is dismayed to note that Audit was denied access to records of the URCs by the Army Headquarters in spite of repeated requests on ground that URCs are regimental units and are being run from non-public fund. What is more intriguing is the fact that such denial was made despite directions of the Defence Ministry to make records of the URCs available for audit,” the PAC said in its report.
In its other report, the PAC pointed out “several glaring deficiencies and inadequacies” in the supply chain management of rations in the Army. Decrying that 74 per cent of fresh vegetables and fruits issued to units by supply depots were not in accordance with prescribed norms, the Committee said, “There are serious anomalies in receipt and supply of vegetables in one station alone.”
The PAC has observed “shortcomings” in procurement procedures of Army Service Corps, issue of rations to troops even after expiry of original Estimated Storage Life (ESL), highly non-competitive procurement of fresh rations and deviation from the laid down guidelines.
The Committee said it was startled to know “ESL of a number of dry rations was extended by an army lab beyond its permissible limit.”
“Still worse, these dry rations were consumed by the troops even six to 28 months after expiry of their normal ESL,” it said.
The PAC report noted that out of 343 annual procurement contracts for dry rations for troops, 80 were cancelled due to non-performance of the contracts.
The Committee expressed its concern on the functioning of Management Information Systems Organisation (MISO) in Army headquarters saying it was “far from satisfactory and leaves much to be desired.”
PAC: Check leakage of defence liquor
The PAC also expressed it concern over defence liquor finding its way to the civilian market and asked the Defence Ministry to take “stringent action” against delinquent personnel who are involved.
“Concerned over leakage of defence liquor in civilian market, the committee has recommended stricter controls and stringent disciplinary action against delinquent personnel,” the PAC said in a Press release here after tabling its two reports.
