Digital signature fraud in MGNREGS: State mission issues strict circular to prevent misuse

THIRUVANANTHAPURAM: In a move to curb large-scale corruption in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)—a project funded by crores of rupees from the Central Government—the Kerala State MGNREGS Mission Director has finally issued a circular to prevent the misuse of digital signatures.

The directive explicitly states that Panchayat Secretaries and Assistant Secretaries must personally use their digital signatures and are strictly prohibited from handing them over to contract employees. This fraudulent practice has reportedly been ongoing for several years.

Loophole and the fraud

Digital signatures of the Secretary and Assistant Secretary are mandatory on all online payment documents related to the scheme. However, instead of handling this personally, it has become common practice to delegate the task to contract staff.

Taking advantage of this loophole, some staff members have reportedly authorised payments for non-existent works and pocketed commissions. The State Mission stepped in following reports of these incidents and in light of the Central Government’s recent overhaul of the scheme’s regulations.

Control held by contract staff

While supervision officially rests with the Panchayat Secretaries, Block-level Program Officers, and District Joint Program Coordinators, there are serious allegations that these officials fail to verify documents or ensure that no irregularities occur.

The day-to-day operations are largely managed by contract employees, including:

• Panchayat Level: One Engineer, two Overseers, and an Accountant-cum-IT Assistant.
• Block Level: One Engineer and two Accountant-cum-IT Assistants.
• District Level: One Engineer, two Accountant-cum-IT Assistants, and one IT Personnel.

Protected even after being caught

Despite clear evidence of malpractice, accountability remains elusive:

• Ombudsman Findings: The Ombudsman has previously caught officials red-handed and ordered Secretaries and others to refund large sums of money lost through digital signature misuse.
• No Termination: Temporary employees involved in these scams often have their contracts renewed and continue to work within the project.
• Lack of Action: Gram Panchayat Secretaries involved in the fraud have largely avoided departmental disciplinary action.
• Cover-ups: It is alleged that such incidents are often settled internally to prevent them from reaching the higher authorities of the Local Self-Government Department (LSGD).