SHILLONG, March 28: The Comptroller and Auditor General of India (CAG), in its report, has pointed out that the Shillong Municipal Board (SMB) is too lenient with the private bus operators and even lessees operating parking lots in the city
As per the report, the Shillong Municipal Board (SMB) entered into agreements with various private operators for operation of public transport vehicles in a bid to provide efficient and low-cost public transport in order to extend social service for the people of Shillong and its suburbs.
As per contract agreement, “in the event of any sums whatsoever are due and owing to SMB from the operators/transferees under the agreements, the Board shall have the sole and absolute right to recover the same by appropriating such dues from performance security and in case of delayed payments the parties shall be paid along with interest at rate of SBI Prime Lending Rate plus two per cent on the delayed amount for the delayed time.”
In the process, SMB leased out a total of 100 vehicles to eight operators during the period covered by audit (2017-18).
As per the report, against the contract value of Rs 105.64 lakh per year, the operators deposited an amount of Rs 62.61 lakh resulting in a shortfall of 43.03 lakh.
Further, it was seen that the shortfall in deposit of revenue ranged from 11 per cent in the case of the lowest amount of shortfall, to as much as 100 per cent in the case of the highest amount of shortfall.
“Thus, due to the default of the operators in depositing the agreed amount, the SMB lost revenue of 43.03 lakh,” the report said.
In reply, the CEO of SMB stated (in December 2018), that the operators of the SPTS buses have requested for reduction in the revenue and the matter is still pending with the higher authority.
“The reply is untenable as no action has been taken against the defaulters by forfeiting the performance security money and charging of delay payment charges SBI Prime Lending Rate + two per cent as stipulated in the contract agreement,” the report said.
With regard to municipal parking lots, the report said that SMB leased out its parking lots to different lessees for a fixed or contract price tendered by the lessees.
During audit, it was seen that 12 lessees defaulted in payment of revenue amounting to 66.71 lakh.
The report stated that against due amount of Rs 170.04 lakh, the lessee deposited Rs 102.80 lakh resulting in short deposit of Rs 67.23 lakh. Hence, due to the default of the lessee in depositing the due amount, the SMB lost revenue of Rs 67.23 lakh.
As per the agreement, in case of non-payment of lease money, the SMB will have the right to make alternative arrangement for collection of parking fees from the lessee and initiate legal action against them.
“There was, however, nothing on record to indicate that the SMB has initiated any action against the defaulting lessees,” the report added.
Short release of AMRUT funds
Owing to non-utilisation of available funds and failure to meet the service-level benchmark by the SMB, there was a short release of the central share of Rs 35.62 crore for 2015-17 under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the CAG report revealed.
In Meghalaya, Shillong was the only city selected under AMRUT and as per the Mission Guidelines of AMRUT, funds would be released in three installments in the ratio of 20:40:40.
The first installment would be released immediately after approval of the State Annual Action Plan (SAAP) by the Apex Committee. The second and third installments would be released on receipt of 75 per cent utilisation certificates and meeting service-level benchmark as mentioned in SAAP.
The CAG audit observed that the total approved SAAP for Shillong under AMRUT for 2015-16 and 2016-17 was Rs 49.48 crore (90% central share Rs 44.53 crore and 10% state share Rs 4.95 crore) for implementation of ‘Sewerage System & Treatment Plants, Septage Managements and Green Spaces & Parks’.
Out of its share, the Union government, however, released 20 per cent of its share i.e. Rs 8.91 crore (Rs 4.11 crore for 2015-16 and Rs 4.80 crore for 2016-17).
The balance of Rs 35.62 crore was not released to the state till the date of Audit (November 2019).
According to report, the SMB had incurred expenditure of Rs 6.80 lakh only on advertisement for calling of tenders. However, no work has been commenced and no further expenditure has been incurred under the scheme till the year 2018-19.
The allotted fund has been invested in the bank under Fixed Deposits. Although no reason was stated for non-release of the allotted fund to the state by the Union government, it was, however, evident that the central government had not released the central share due to non-utilisation of available funds and failure to meet the service-level benchmark by the municipality.
