DIMAPUR, March 28 � After the alleged Rs 18 crore scandal, Nagaland Police department has been once again been pulled up by the Comptroller and Auditor General (CAG) with the Director General of Police (DGP) Nagaland being indicted for drawing Rs 4 crore on the basis of fictitious bills for procurement of 1,750 fire extinguishers.
This was revealed in the CAG report for the year ending March 31, 2011, which was tabled in the recently concluded State Budget session. The report stated that the Government accorded expenditure sanction and drawal authority for Rs 4 crore under major head � Arms and Ammunition � on the basis of the proposal submitted by the office of the DGP for procurement of 1,750 fire extinguishers.
Accordingly, the office of the DGP drew the entire amount on fully vouched contingent bill from Kohima Treasury (South) enclosing a bill submitted by M/S SDS Electronics Pvt Ltd., Haryana.
The CAG said a Line Committee constituted by the DGP physically verified the fire extinguishers supplied by M/s SDS Electronics Pvt. Ltd. Haryana and submitted a report stating that the stock had been verified on November 30, 2007. The Committee had also certified that all the 1,750 fire extinguishers were received from the supplier.
The report says scrutiny of the DGP office�s cash book revealed that Rs 4 crore payment was made to M/s SDS Electronics Pvt. Ltd. Haryana. However, it said when a letter was issued on May 2011 by audit to M/s SDS Electronics Pvt. Ltd. Haryana to ascertain genuineness of the payments, a response was received from the firm stating that they had neither supplied the fire extinguishers nor have ever dealt with fire fighting equipment since its inception in the year 1993.
On the irregularity being pointed out, the CAG said the department had stated that proforma bill of M/s SDS Electronics Pvt. Ltd. Haryana was obtained from a local dealer as the same was required for obtaining expenditure sanction from the Government. Though the amount was drawn in advance against the bill of M/s SDS Electronics Pvt. Ltd., supply order was given to a local firm M/s International Trading Company, Dimapur, as they were ready to supply materials as per Government approved rate, the CAG report said.
It also revealed that while furnishing the replies, the Department submitted Actual Payee Receipts (APRs) of the entire amount from M/s International Trading Company, a local firm based in Dimapur. It was further stated that the material was supplied in part by the firm and accordingly part payments were made for quantity actually supplied.
The CAG report maintained that the reply of the Department is not acceptable as all the records, including the Line Committee Report, indicated that the supply was made by M/s SDS Electronics and the entire payment was made to the firm. Further, it said the contention of the department that materials were received in part and payments also made in part is not convincing and contrary to the Line Committee Report which certified that materials were received in full in November 2007 itself while Rs 3.07 crore out of Rs 4 crore was actually paid to the firm only in August/September 2008, as recorded in the cash book.
The report, therefore, said it is evident that the office of the DGP, Nagaland, drew an amount of Rs 4 crore for procurement of 1,750 fire extinguishers on the basis of fictitious bill.