CAG finds Chhattisgarh DMFTs kept funds in savings, missed interest gains

Who it concerns: Government of Chhattisgarh, specifically the Mineral Resources Department and the District Mineral Foundation Trusts (DMFTs) in 33 districts.

What the auditor found

• ₹10.82 crore remained outstanding with the State-level DMF Cell as of March 2024.
• ₹1.68 crore was transferred to the State-level DMF Cell contrary to Government of India orders.
• ₹41.80 crore was spent on incomplete works and unutilised assets (e.g., Art and Culture Centre, Biogas plants).
• ₹30.73 crore was used for government office construction/renovation, which is outside the scheme's priority areas.
• ₹17.49 crore worth of items were procured without open tenders.
• ₹38.82 crore worth of items were procured without stipulated technical specifications.
• ₹709.47 crore was allocated for free item distribution, with a test-check of ₹28.11 crore revealing random distribution without clear beneficiary criteria.
• 754 out of 1,734 directly affected villages (44%) remained uncovered in sampled districts.
• 100% manpower shortage in Bemetara and Mahasamund districts; over 50% shortage in four other districts.
• Recommendations include notifying the list of 'Affected People', preparing a long-term Master Plan, and conducting Social Audits.

Also in the document

• CAG found that funds were often kept in savings accounts without opting for auto-sweep or flexi deposits, missing opportunities to optimize interest earnings.
• CAG noted that the State Government did not include the provision for DMFT accounts to be audited by the CAG in the amended rules, despite it being in the 2024 guidelines.
• CAG observed that 'affected areas' were identified with delays ranging from five to 65 months after the Trusts were established.
• CAG reported that key information such as trust composition, affected areas, and work status was not disclosed on the websites of 12 sampled districts.