CAG report shows mismanagement of Rs 68 lakh grant by 15 KHADC MDCs

Shillong, Dec 29: The Comptroller and Auditor General of India (CAG) report for the year ending March 31, 2018, revealed significant lapses in the utilisation of funds sanctioned under the “Special Town and Rural Welfare Programme” by the Khasi Hills Autonomous District Council (KHADC).
The report highlighted that 15 Members of District Council (MDCs) failed to submit utilisation certificates (UCs) for Rs 68 lakh in grants disbursed in March 2018, raising questions about transparency and accountability.
According to the report, the KHADC Executive Committee Secretary released Rs 72 lakh on March 31, 2018, granting Rs 4 lakh to each of the 18 MDCs.
The programme aimed to assist below-poverty-line (BPL) families facing acute difficulties and to encourage sustainable self-employment initiatives.
While one MDC submitted UCs and vouchers for the Rs 4 lakh received, detailing expenses such as the purchase of two Aqua Guards, a UV Sanitiser, and financial aid to 47 individuals ranging between Rs 5,000 and Rs 10,000, the remaining 17 MDCs failed to provide any documentation to substantiate the utilisation of funds.
The absence of vouchers and UCs for Rs 68 lakh rendered the expenditure unverifiable, as noted by the CAG.
The report expressed concerns over the inability to ascertain whether the funds were used for their intended purposes.
Although the Secretary to the Executive Council acknowledged the audit findings and reported in August 2022 that two additional MDCs had since submitted UCs, 15 MDCs remained non-compliant despite repeated reminders. The KHADC also did not provide vouchers to the audit team for verification.
The programme’s guidelines mandated that funds be utilised transparently and responsibly by the MDCs, with UCs and supporting vouchers submitted within six months of disbursement. The funds were intended for maximum area coverage and direct assistance to those in need. However, the failure of 15 MDCs to adhere to these guidelines has cast doubt on the effective implementation of the welfare scheme.