Published On: Sat, Mar 25th, 2023

CAG report on rampant corruption in BMC tabled in Maharashtra Assembly

Mumbai: The report by the Comptroller and Auditor General (CAG) was presented in the Maharashtra legislative assembly by Deputy Chief Minister and Finance Minister Devendra Fadnavis on Saturday.

The audit covered the period between November 28, 2019, and October 31, 2022

A special audit report on Brihanmumbai Municipal Corporation (BMC), the governing civic body of Mumbai, has highlighted major systemic problems, poor planning, and careless use of funds in BMC.

The audit covered the period between November 28, 2019, and October 31, 2022, and interestingly till June 29, 2022, Shivsena (UBT) President Uddhav Thackeray was the chief minister of the State.

After tabling the CAG Report in Legislative Assembly DCM and Finance Minister Devendra Fadnavis tweeted, “Unimaginable Corruption in BMC! Tabled a CAG report in Legislative Assembly, regarding rampant corruption in BMC. This report is just a trailer since very few projects have been audited yet.”

The preface of the audit report says that the state government despite repeated reminders by the office of the Accountant General (Audit)-I, Maharashtra, to direct the BMC to produce the records related to Covid-19 management, no records were produced. It’s mentioned in the audit report that the records related to expenditure for management of Covid-19 were not produced for audit by BMC despite repeated requests. The non-production of records apart from impinging on the constitutional responsibilities devolved on the Comptroller and Auditor General of India also deprived BMC of crucial audit inputs, which would have been beneficial for any course correction and systemic improvements.

The audit observed that the BMC awarded 20 works across two departments valued at Rs 214.48 crore without inviting tenders, which was against the provisions of the manual of procurement of BMC and established vigilance guidelines. Further, contract agreements were not executed between the contractors and BMC in 64 works costing Rs 4,755.94 crore across five departments. In the absence of formal agreements, BMC would not be able to take any legal recourse against the contractors, in the event of default on the part of the contractors. Moreover, in 13 works costing Rs 3,355.57 crore across three departments, third-party auditors were not appointed to ascertain the quality/quantity of works executed by the contractors.

These major lapses point to the scant respect for established procedures and weak internal controls in BMC, leading to a lack of transparency and probity in the execution of works taken up at a significant cost. These irregularities are brought to the notice of the Urban Development Department of the state government for necessary remedial action to eliminate malfeasance and to improve the overall performance of BMC thereby ensuring integrity in the use of public funds.


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