Daijiworld Media Network – Mangalore (SP)

Mangalore, Dec 23: Indian Audit and Accounts Department (IAAA) report says that the city corporation here has committed irregularities in financial management. As the corporation has failed to follow standard accounting procedure and regulations relating to use of funds, it suspects that lot of funds have been misused.

The report relates to financial transactions of the corporation for the years 2008-09 and 2009-10. The city corporation apparently has not exercised diligence in utilizing the funds received from the government and the taxes collected from the citizens of the city. The report has pointed out that the corporation has failed to collect licence fee of around Rs 38 lac from commercial stalls from 2008 to 2011. The negligence of the corporation officials has enabled these stalls to continue to function without valid licences. The report also mentions about advance of release of Rs 1.21 crore towards construction of Bejai market building for construction work that is yet to be taken up, which is not legal.

The grants released by the government for specific purposes, have been kept in fixed deposits with banks without using the funds for the purposes for which they were released. Moreover, these deposits have not been renewed, the report has revealed.  Other irregularities include collection of stamp duty at rates less than what is necessary in case of Khata transfer, and non-remittance of income tax deducted from bills of contractors, which accounts for a loss of nearly Rs 33 lac. The corporation is yet to collect rental of over Rs 19 lac from shops, and Rs 39.29 lac from government departments functioning in its own commercial complexes at Lalbagh, Kadri, etc. The city corporation has also failed to collect revenues it is expected to collect in respect of advertisements in the city.

It is learnt that the city corporation has now received a notice from the director of the municipal administration of the state, seeking an explanation for the above lapses.