Misappropriation of Rs 669.92 cr under MNREGA in State

Bengaluru : A social audit report has unearthed substantial misappropriation of funds amounting to ₹669.92 crores under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) in Karnataka within a single year. The report identifies 6,050 cases across various districts, with ₹2.89 crores distributed in the names of deceased individuals.

Audit officials regularly review MNREGA accounts at the district and taluk levels through monthly meetings. During the audit of accounts for gram panchayats and implementing agencies in the 31 districts of Karnataka for the year 2022-23, auditors documented significant financial irregularities totaling ₹669.92 crores.

The report highlights multiple discrepancies, including salary payments for non-existent work, expenditures exceeding the allocated budget, misallocation of NREGA funds to other projects, and wage distributions in the names of deceased individuals. Additionally, funds have been misappropriated despite flaws in various projects, and numerous initiatives have been executed without proper documentation. There is also an issue of mandatory signage not being installed and tax deductions not being accounted for.

NREGA was initiated in 2013-14 to alleviate unemployment in rural areas and provide livelihood opportunities, yet officials have failed to maintain accurate financial records. The lack of proper documentation raises serious concerns regarding large-scale fund misappropriation.

Referring to this report, the Commissioner of the Rural Development and Panchayat Raj Department wrote to all Zilla Panchayat Chief Executive Officers (CEOs) on October 10, 2024, instructing them to recover the misappropriated funds. However, it has been four months sincethis directive, and with no action taken, doubts have arisen about the accountability of officials.

The report notes that the gram panchayats and implementing agencies were given prior notice regarding social audits. However, on the designated audit day, officials failed to provide necessary documentation, leading to obstacles in the audit process. The Panchayat Development Officer (PDO) and the Panchayat President have been held accountable for the financial misappropriation.

Regulations mandate the establishment of recovery cells at the district level to reclaim misappropriated NREGA funds. However, in many districts, these cells remain inactive due to the negligence of District Panchayat CEOs, resulting in delayed recovery processes.

In response to an RTI inquiry by social activist Y.D. Kunnibavi, a statement from the Chief Accounts Officer, District Planning Officer, and Accounts Officer - 2 of the Haveri District Panchayat revealed that key positions remain vacant, further hindering the effective operation of the recovery cells.

Since the inception ofNREGA in 2013-14 up until 2022-23, around ₹4,500 crores in wage payments for various projects have reportedly remained unaccounted for. This amount has been termed as “questionable expenditures,” and officials have repeatedly been instructed to provide complementary documentation. However, no records have, as of yet, been submitted.

The findings from this audit raise urgent calls for accountability and transparency in the disbursement of funds under the NREGA program, which is crucial for supporting rural development and employment in the state.