Feb. 16: A sum of Rs 11.06 crore, sanctioned for purchasing fire-fighting equipment, has been lying unutilised because Dispur has not released the money to the State Fire Service Organisation (SFSO), the report of the comptroller and auditor general (CAG) for 2005 has pointed out.
The CAG report for Assam for 2005 found this from a test check of records of the director of the SFSO, Guwahati, in August 2004 and later in June 2005. The report revealed that the objective of obtaining loans from the General Insurance Corporation was frustrated as the government released only Rs 3 crore in March 2005 which, according to the government’s instructions, was drawn and deposited in the civil deposit by the director.
Officials said the SFSO desperately needs hydraulic platforms and other fire-fighting equipment to effectively deal with any blaze at a height of over 20 metres. With the spurt in construction of highrise buildings in the city, this has become essential.
The Assam government had raised a loan of Rs 11.14 crore from the General Insurance Corporation in 2003 with the consent and sanction of the Union home ministry. The intention was to use the amount only for purchasing fire-fighting equipment.
According to an agreement drawn up between the borrower (Dispur) and the lender (GIC), the loan was repayable in 15 equal annual instalments and interest was payable half-yearly at the rate of 11.5 per cent per annum.
The agreement further provided that the borrower was required to utilise the loan amount for the specific purpose within six months of availing the loan.
The director of SFSO received a cheque of Rs 11.06 crore in April 2003 from the National Insurance Corporation, a subsidiary of GIC, after deduction of Rs 0.08 crore towards the state government’s outstanding dues payable to GIC.
In a shocking indictment, the CAG pointed out that no part of the loan of Rs 11.06 crore was utilised for the purpose even though two years had passed from the date the loan was taken. The entire loan amount was assimilated into the general cash balance of the government. This implies that it was diverted and utilised for other activities of the government.
