Imphal, August 10 2010: The Imphal Municipal Council (IMC), having been found indulging in gross financial irregularities and misuse of funds to the tune of crores of rupees, abuse of power and administrative lapses by a Committee of Officers during nearly a year-long investigation of its administrative functioning and financial management, has been suspended for a period of six months with effect from yesterday.

Additional Secretary, MAHUD, Government of Manipur, M Joy Singh has issued an order in the name of the Governor of Manipur in this regard yesterday, August 9 .

The Committee of Officers comprising Addl Secy, MAHUD, M Joy Singh as chairman, Chief Engineer (PDA), Under Secretary (Finance), and Asst Director (MAHUD) as members was setup on September 3 last year.

The Committee was assigned to examined administrative functioning and financial management of the IMC and make appropriate recommendation for improving and revitalising the IMC.

The Committee submitted its findings to the Government on the 3rd of this month.

After carefully studying the findings of the Committee, it is learnt that the State Cabinet decided to suspend the functioning of the IMC for a period of six months.

The Committee made a list of the financial irregularities, misuse of funds, abuse of power and administrative lapses by the IMC.

According to the findings, documentation of the properties and assets of IMC is not done and maintained properly.

Monthly income/revenue of IMC from all sources excluding Govt grant-in-aid of Rs 19 lakh per month is Rs 5.50 lakh per month.

The revenue collection is also not done properly without indicating the actual rate of fee.

In case of Paona International Market and Rupmahal Tank stalls and shops, documents like copies of agreements signed between the IMC and the Leasee were not produced (being not available), and collection of rent is extremely lower than the annual demand, the Committee pointed out in its findings.

The Committee found that requirement of monthly expenditure of IMC for payment of staff salary/pension honorarium for Chairperson/Councillors, maintenance of vehicles/POL and office expenditure is approximately Rs 43.80 lakh against which the Council receives Rs 24.50 lakh (Rs 19 lakh GIA + Rs 5.50 lakh revenue).

The monthly resource gap is Rs 19.30 lakh i.e.Rs 231.60 lakh per year.

No endeavour has been made by the IMC to generate more revenue for bridging the resources gap.

It further said that liability of the IMC at present would be about Rs 11.30 crore for payment of backlog salaries, pension, etc.

However, even if the present liability is wiped out by giving one time financial pakage to the IMC by the State Govt, the liability of the IMC would be a recurring feature since the monthly resource gap is Rs 19.30 lakhs since efforts are made by the IMC for increasing the revenue base.

The Committee also noted that the IMC produced a list of the development schemes implemented by IMC t the Committee of Officers the details for utilisation of the fund released by Govt could not be shown to the Committee.

The Committee found the number of employees of the IMC to be 273 (191under general staff including technical, accounts and revenue section plus 82 sanitary staff.) Proper coordination and linkage amongst the various sections of IMC were lacking.

Another interesting fact the Committee found is that against the approved rate of honorarium as fixed by the Govt, the IMC had given higher honorarium to the Chairperson and Councillors without prior approval of the Govt, and also without having source of fund for the payment.

The Chairperson has been paid honorarium @ Rs 15,000 per month against the aproved rate of Rs 1,500 per month, the Vice Chairperson has been paid Rs 13,000/per month against the approved rate of Rs 1,200 per month, whereas, the Councillors have been paid Rs 12,000 per month against the approved rate of Rs 800 per month.

This has resulted in unauthorized excess expenditure of Rs 36.63 lakh per year.

The Committee also accused the IMC of diverting and misusing funds given to the IMC under the 12th Finance Commission Award to the tune of Rs 13.92 lakh for payment of MR wages, honorarium of contract staff without approval of the Govt, whereas the amount was sanctioned for purchase of two Tata Tipper trucks.

Further, out of Rs 36,46,000 released to the IMC for Solid Waste Management under 12th Finance Commission for the year 2006-07, IMC diverted and misused a sum of Rs 24,64,657 for payment of honorarium for Chairperson, Councillors and staff salaries.

Again another sum of Rs 18,71,259 was diverted out of the grant of Rs 35,60,662 received by the Council as Central share for implementation of SJSRY for the year 2007-08 and the diverted fund was misused for payment of staff salary, the Committee said.

Meanwhile, Chairperson M Ranisana, on being contacted by our political bureau, tried to lighten the grounds for suspending the IMC by just saying that it was being done due to regular absence of the opposition Councillors.

On the other hand, opposition Councillor of Ward No.27, Shamurailatpam Pralahd (MPP) told this newspaper that huge funds are going to be sanctioned for developing Imphal as a mega city.

Being greedy of the funds, the Govt might have suspended the IMC.

He also said that the Congress-led SPF Govt does not have faith in its own party Councillors.

That's why the Govt has suspended the Council.

At the same time, the Councillors have started looking for possibilities to take legal help against the suspension of the IMC nearly 10 months before the full term of the Council is completed.

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