Work orders issued without inviting tenders; excess payments made
SHILLONG: The CAG Report year ended 2015 has revealed instances of internal control failures in the Arts and Culture department such as work orders being issued without inviting tenders and undue delay in ensuring submission of utilisation certificates (UCs).
CALM episode
The CAG in its report said that the department of Arts and Culture issued supply orders of Rs 41.57 lakh to four firms-SAHAKI Society, Jones Artistic Works and Handicraft, Purple House Production and JJ Technologies– without calling for tenders and quotations for organising the ‘Creative Arts Literature and Music (CALM) Festival 2014’
The Government stated (December 2015) that the nature of the articles was such that it was required to be physically verified to determine quality and that exhaustive market survey was conducted prior to calling spot quotation. The Government also stated that adequate publicity was given by putting up the notice inviting quotation (NIQ) in the notice board of all the offices of the Department.
The reply, however, was not tenable as the guidelines issued by the Finance Department provide that the NIQ were to be published in the local dailies and the regional and national papers as may be appropriate.
According to CAG, an amount of Rs 28 lakh was released (April-May 2013) to various organisations for organising art and cultural events.
However, even after more than two years of the funds being released, the fund recipient organizations-President Jaintia Tourism & Environment Society, Stage Fusion, Nelson Memorial School, Nonglang, Northern United Club, Tura, All Jaintia Dancers Association and Tynrong Shibor Society, had not submitted the UCs. Though the department was to monitor the implementation of the scheme, it had failed to ensure that UCs be submitted and/or seek report of completion of the scheduled events, the CAG report observed.
The Government in its reply stated (December 2015) that the organisations were being regularly contacted for furnishing UCs and that UCs from two organisations had since been received.
18 Degrees Fest
fund mismanagement
Meanwhile, the Arts & Culture Department organised the three-day 18 Degrees Festival at Shillong from October 9-11, 2014 for youth and students. As a part of the festival, a New Delhi based firm, ‘Bronx Model Management’ (BMM) submitted in May 2014 a lump sum proposal of Rs 21.35 lakh for organising a fashion show on October 9, 2014 called ‘Creative Encounters II’. The proposal covered expenses/payments for advertising, director, choreographers, designers, models, travelling cost, etc., and was accordingly accepted by the department of Arts and Culture. The event was accordingly organised and BMM was paid Rs 21.24 lakh in two installments.
Audit scrutiny revealed that in addition to the Rs 21.24 lakh, another Rs 8.55 lakh was paid (September 2014) to one Dasalanmi Lakiang, the fashion director of BMM for air tickets, hotels and taxi charges of designers, models and other personnel, though this cost was included in the approved proposal.
The CAG report said that furthermore, the irregular excess payment was made on the strength of a lump sum bill without any details and supporting documents viz. vouchers, air tickets, boarding passes, etc.
BMM’s proposal also included charges for two prominent designers – Ritu Beri and Daniel Syiem and records revealed that BMM paid Rs 5.06 lakh and Rs 0.75 lakh to Ritu Beri and Daniel Syiem on September 27, 2014 and October 11, 2014 respectively.
Audit scrutiny, however, revealed the department again paid Rs 6 lakh to one Collin Blah as payment to these two designers (Ritu Beri 5 lakh, D Syiem 1 lakh) without any acknowledgement from them.
No action was taken by the department to recover the excess payment of Rs 14.55 lakh made to Dasalanmi Lakiang the Fashion Director of BMM and Collin Blah.
In its reply the Government stated that in the proposal of Rs 21.35 lakh there was a typing mistake by BMM indicating Fashion Designers and that 8.55 lakh was paid to Dasalanmi Lakiang for air tickets, models and other personnel and Rs 6.00 lakh to Collin Blah for payment to Ritu Beri and Daniel Syiem.
“The reply was untenable as BMM clearly highlighted that the Fashion Designers Ritu Beri and Daniel Syiem were part of the proposal,” the report said.