CAG report picks holes in Finance Dept
Source: The Sangai Express

Imphal, July 29 2017: Owing to the failure of the State Government to timely transfer labour cess amounting to Rs 48.61 deducted at source 1 percent each from the construction works, Manipur Building and Other Construction Workers' Welfare Board had been deprived of the statutory dues .

According to the report tabled by Comptroller and Auditor General of India (CAG) in the ongoing 11th Manipur Legislative Assembly session, the labour cess collected by various Departments were deposited in the approipraite receipt head but not transferred to the Board since 201-12 till 2014-15 in spite of several reminders to the Finance Department (June and November 2011) from the secretrary of the Board .

Section 3 (1) and 3 (3) of the Building and Other Construction Workers' Welfare Cess Act, 1996 mandates levy and collection of cess not less than 1 percent of the cost of construction works to fund labour welfare schemes and the proceeds of the cess collected by the local authority or State Government shall be paid to the Board after deducting the cost of collection of such cess not exceeding 1 percent of the amount collected .

Accordingly, the State Government in January 2011 directed the concerned Drawing and Disbursing Officers (DDOs) to deduct at asource 1 percent of the basic cost of construction and deposit the amount to a specified Head of Account by challan .

As per Section 9 of the Act, delay in transferring the amount collected as cess to the Board would attract a penalty not exceeding the mount of cess .

Audit of accounts (February 2016) of the Board noticed that as per the Finance Accounts of the State, an aggregate of Rs 49.10 crore remained accumulated in the receipt head during 2011-15 out of which Rs 48.61 crore should have ben transferred to the Board .

Further, the Board was denied an opportunity to supplement their revenue thorugh probable interest income to the tune of Rs 8.66 crore by investing in term deposits with a Natiuonalised bank as per the directives of the Supreme Court.

As per the provisions, the State Government is also liable to pay penalty not exceding Rs 48.61 crore to the Board due to delay in transfer of the cess collected .

The matter was referred to the Finance Department in July 2016.The Department in September 2016 stated that as the fund was lying in Government account, there is a no question of misappropriation or misutilisation of money and will initiate steps to transfer the amount to the Board in phased manner.

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