ITAHARI: A recent report of the Office of the Auditor General (OAG) for the fiscal year 2023/24 has revealed a series of financial irregularities in Itahari Sub-Metropolitan City.
According to the report, over Rs 11.1 million was misused during project implementation, bypassing the rules on community cost participation. As per the Project Execution Regulations, 2019, consumer committees must contribute 20–40% of project costs. However, the Planning Division of the sub-metropolis is found to have signed project contracts without requiring any such contribution.
The sub-metropolis had signed a contract with National Fire Safe Pvt Ltd in November 2023 for the supply of one Category ‘A’ ambulance by June 2024. However, even after nearly two years, the ambulance has not been delivered even today, putting Rs 8.3 million of the sub-metropolis at risk.
The metropolis has now extended the deadline to supply the ambulance to July 13. However, it appears unlikely that the ambulance will be delivered within the extended deadline.
The prolonged delay has cast doubt on the municipality’s credibility and seriousness in contract enforcement.
“If the ambulance is not delivered soon, not only should the advance be recovered, but interest on the advance should also be charged,” the OAG has stated in its report. “If the supplier fails to deliver within the agreed timeframe, utilizes the advance payment, and the vehicle model stipulated in the agreement becomes outdated and depreciates, then a new model vehicle must be provided. Otherwise, interest on the advance payment must also be recovered.”
The report also highlights irregularities of Rs 8.3 million under the contingency expenditure heading. Nearly half of Rs 16.4 million spent under the heading lacks necessary documentation, according to the report.
The sub-metropolis has also misused over Rs 1.2 million under the project completion heading. Likewise, the sub-metropolis misused state resources by providing Rs 1.29 million in grants to profit-making institutions.
According to the report, another Rs Rs 1.93 million was misused under miscellaneous expenses. Similarly, Rs 6.56 million was spent excessively through a single firm, violating procurement limits, it added.
The report states that Itahari Sub-Metropolitan City lacks transparency and financial discipline in public spending. The obsession with vehicle procurement and other unnecessary expenditures has financially strained the sub-metropolitan city, it added.
