CAG Raps FCI For Rs 56.65 Crore Financial Mismanagement In 2018-19
CAG headquarters in New Delhi. (Source: CAG website)

CAG Raps FCI For Rs 56.65 Crore Financial Mismanagement In 2018-19

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Government's financial watchdog CAG on Wednesday rapped state-run Food Corporation of India for lapses in financial management to the tune of Rs 56.65 crore in the 2018-19 fiscal.

The Comptroller and Auditor General of India, which examined the compliance audit of the financial transactions under 64 civil grants related to 27 government ministries and departments including FCI for the 2018-19 fiscal -- presented its report in Parliament on Wednesday.

In a statement, the CAG said it found lapses in the financial management of FCI as well as making avoidable expenses due to delay in issuing contracts.

"FCI did not execute a movement plan of food grains transportation as intended which resulted in non-availment of the concessional railway freight amounting to Rs 35.96 crore," it said.

Despite operational exigencies, delay in finalisation of ad hoc handling and transport contract resulted in avoidable expenditure of Rs 20.69 crore towards carry-over charges to state government agencies, it added.

FCI is the government's nodal agency that undertakes procurement and distribution of foodgrains for Public Distribution System under the National Food Security Act besides meets demand under other welfare schemes.

CAG also pointed that Agriculture Ministry's failure to fix an appropriate reserve price in time and inordinate delay in decision making at different stages of the disposal process of vessel Matsya Sugandhi, resulted in avoidable expenditure of Rs 1.14 crore.

"Delay in disposal also led to the Ministry receiving a lower price for the vessel due to depreciation of the vessel," it added.

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