Lack of accountability

21/07/2017

In a testimony of lack of accountability in the Public Sector Undertakings (PSUs) of Jammu and Kashmir, 13 working Government companies and a statutory corporation have not finalized their accounts during the past several years despite continuously getting crores of rupees in the form of equity, loans and grants. Moreover, the accounts of eight of these companies are in arrears since past over one decade as a result of which Government and Legislature are in dark about the results yielded by the investment. Keeping in view poor financial condition of 13 working Government companies and one statutory corporation, the Government is compelled to make regular investments in the form of equity, loans and grants. However, these companies and corporation are not finalizing their accounts for obvious reasons thereby keeping the Government in dark about the outcome of the investments. Another shocking aspect is that even the Government is not initiating required steps to ensure that those at the helm of affairs in these Public Sector Undertakings ensure strict compliance to the Financial Rules. They informed that State Government had invested Rs 850.63 crore in these 14 PSUs for which the accounts have not been finalized till date. In the absence of finalization of accounts and their audit, it could not be ascertained whether the investments and expenditure incurred have been properly accounted for and whether the purpose for which the amount was invested had been achieved or not. Not only this, even such a huge investment in the PSUs remained outside the oversight of the State Legislature. Government is required to table reports vis-à-vis audit of accounts of PSUs in the Legislature for the scrutiny by Legislators. It is only after proper audit of the accounts of the PSUs that a report is tabled in the State Legislature but audit was not possible for want of proper accounts.
J&K State Agro Industries Development Corporation Limited has not finalized the accounts during the past over 12 years. This PSU has finalized the accounts up to 2003-04 only. Similarly, J&K State Horticulture Produce Marketing and Processing Corporation Limited has not finalized its accounts from 2000-01 onwards. J&K State Handloom Development Corporation Limited has finalized its accounts up to 1999-2000 only and during the past 16 years those at the helm of affairs in this PSU never tried to ensure strict compliance to the Financial Rules. Worst is the scenario in respect of J&K Handicrafts (Sale and Export) Development Corporation Limited, J&K Small Scale Industries Development Corporation Limited, J&K Minerals Limited and J&K Scheduled Castes, Scheduled Tribes and Other Backward Classes Development Corporation Limited whose accounts are in arrears since 1998-99, 1996-97 and 1997-98 respectively. J&K Industries Limited has not finalized its accounts since 2005-06, J&K State Industrial Development Corporation Limited since 2010-11, J&K Cements Ltd since 2007-08, J&K State Power Development Corporation Limited since 2011-12, J&K State Cable Car Corporation Limited since 2010-11 and State Women’s Development Corporation Limited since 2012-13. J&K State Road Transport Corporation, which is the working statutory corporation, has not finalized its accounts since 2011-12.

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