RD dept clarifies on allegation of PMAY-G fund embezzlement

DIMAPUR, JUNE 15 (MExN): The Directorate of Rural Development, Nagaland on Thursday clarified to the allegation of ‘fraud and financial embezzlement’ leveled against the Department by the Nagaland Transparency, Public Rights Advocacy and Direct Action Org (NTPRADAO) recently. 

The organization had alleged that a total of Rs 74, 73, 07,700 (seventy four crores seventy three lakhs, seven thousand & seven hundred) for 21,748 beneficiaries under the Pradhan Mantri Adarsh Gramin Yojana (PMAY-G) housing scheme was embezzled by former director of the RD department and others. It accused the incumbent RD director of shielding them. The organization also served a 15-day ultimatum to the Nagaland Chief Minister to take action and constitute SIT against the RD Department. 

In a rejoinder, Rural Department Director, Azenuo Pienyü said PMAY-G is implemented based on the online module of transferring fund through the Public Food Management System (PFMS) by generating Fund Transfer Orders (FT0s). 

It stated that Public Financial Management System (PFMS) is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India with the objective of tracking funds released under all plan schemes of GoI, and real time reporting of expenditure at all levels of programme implementation.

This system is an online cashless transfer system where the Ministry of Finance controls the release of funds from the SNA (State Nodal Account) direct to the beneficiary account. 

Considering the lack of adequate banking coverage in the state, the rejoinder claimed it engaged vendors to supply housing materials to the beneficiaries. This method of implementation was approved by the Ministry of Rural Development vide letter NO.M. 12016/23/2016-RH (MikT) dated Krishi Bhavan, New Delhi, May 23, 2017, it stated. 

Accordingly, vendors were engaged to supply housing materials to the beneficiaries under PMAY-G where payments were electronically transferred to the vendors' accounts through PFMS and not through cheque. Bank statements of the PMAY-G State Nodal account are available for scrutiny, it added.

Coming to the allegation of misuse of fund amounting to Rs 74, 73, 07,700, the RD rejoinder said out of the amount stated, an amount of Rs 57, 33, 11,700 was received against the target of FY 2016-17 and the amount was utilised as per the system of implementation stated above. 

Housing materials were provided to the beneficiaries through the vendors to construct PMAY-G houses and therefore the reply to the RTI had stated that no cash amount was given to the beneficiaries’ since only materials were provided. The balance amount of Rs 17, 39, 96,000 was received as part of 1st tranche of 1st installment against the target of FY 2019-20, which the Department is currently implementing. 

Out of the balance amount received, an amount of Rs 12, 54, 50,000 was utilized to assist the SECC beneficiaries by transferring the 2nd installment amounting to Rs 88,000 into the accounts of vendors through PFMS and the 1st and 3rd installment amounts of Rs 22,000 and Rs 20, 000 respectively are being transferred electronically to the accounts of the beneficiaries, it further stated. 

While maintaining that all the necessary documents and all bank statements are available and with the Department constantly trying to improve the implementation of schemes, such poorly researched allegations by defaming its officers of "financial scam" is unbecoming of any respected individual or organization, the rejoinder stated.