Kerala pays Rs 43.68 crore to ADB for failing to implement projects on time

ADB

Thiruvananthapuram: The comptroller and auditor general (CAG) of India has noted that Kerala government paid commitment charges to the tune of Rs 43.68 crore to Asian Development Bank (ADB) for not implementing projects funded by the bank within the specified time.

This was stated in the CAG report on local self-government Institutions for the year ended March 2016, which was tabled in the state assembly on Monday. Loans were sanctioned by the Bank to the tune of Rs 995.40 crore to take up different schemes under Kerala Sustainable Urban Development Project (KSUDP) in five Municipal Corporations.

There were many lapses in the formation and implementation of the project, it was stated.

Half of loans unutilized

Civic bodies could utilize only 51.48 percent of the original loan sanctioned.

"Lapse on the part of the government in not canceling the loan portion relating to projects which could not be implemented within the specified time also led to payment of commitment charges amounting to Rs 43.68 crore to ADB", the report said.

Besides, the cancellation of the component 'Part-C Local Government Infrastructure Improvement' resulted in forgoing $15 million ADB loan meant for financing infrastructure projects in 53 municipalities in the state.

The performance of the corporations in response to the assistance received under the KSUDP therefore was far from satisfactory, the report said.

PSC delay

The CAG on a performance audit and functioning of Kerala State Public Service Commission (KPSC) said delays in reporting of vacancies by government and conduct of selection process had resulted in lapsing of ranked lists without advising even a single candidate.

In its report on general and social sector, the report said due to delays in framing special rules, KPSC could not conduct selection to 41 corporations, companies and services of the state.

The CAG also found fault with the state for not availing Center assistance of Rs 134.91 crore under the centrally sponsored scheme for development of infrastructure facilities for judiciary for improving justice delivery.

Set up evening courts

The CAG recommended the state and High Court to consider setting up evening courts to the extend possible for disposal of petty cases. It also said laxity of state government in timely submission of valid utilization certificates for grants obtained from Center on 'Development of Infrastructure Facilities for the Judiciary' had resulted in the state failing to obtain reimbursement of Rs 34.85 crore from Center.