By Our Reporter
SHILLONG, Feb 27: The latest report of the Comptroller and Auditor General (CAG) has flagged serious operational and financial concerns in the functioning of the Meghalaya Transport Corporation (MTC), stating that sustained losses have eroded its equity and increased its dependence on government grants.
The report was tabled in the 60-member Meghalaya Assembly recently.
According to the report, the MTC’s accumulated losses led to a complete erosion of its equity base, compelling it to rely heavily on government grants for salary support and relief packages. The grants reportedly increased from Rs 1,060.66 lakh to Rs 1,506.36 lakh during the period 2019-20 to 2021-22.
The CAG observed that a large portion of MTC’s bus fleet comprises old and inefficient vehicles, resulting in high repair and maintenance costs and reduced operational efficiency. It noted that better fleet management and phased replacement of outdated buses could significantly improve performance.
The CAG further pointed out that although MTC owns substantial land and property, it has managed to monetise only 7% of its total land assets. The report suggested that commercial utilisation of surplus land and periodic revision of building rents in line with market rates could serve as additional revenue streams for the corporation.
The expenditure pattern of the corporation also came under scrutiny. The report highlighted that rising salary payments and increasing hiring of outsourced staff have adversely impacted operational efficiency. It recommended a manpower review to determine optimal staff strength in proportion to the scale of operations.
Another area of concern raised in the audit was the non-submission of annual accounts since 2015-16, indicating weak internal controls and governance lapses. The CAG recommended that the MTC Board ensure the timely submission of annual accounts by deputing necessary manpower and appointing a chartered accountant, if required.
In its recommendations, the CAG advised MTC to put in place short- to medium-term plans aimed at improving operational efficiency by phasing out old buses, hiring fuel-efficient vehicles, and increasing the frequency of buses on profitable routes.
While acknowledging that MTC plays a vital role in ensuring the availability of public transport in areas not served by other operators, the CAG stressed the need for urgent corrective measures to make the corporation financially sustainable and reduce the burden on the state exchequer.
