Govt incurred liability of Rs 1317 crore due to unauthorized pay revision by KSEB: CAG report

THIRUVANANTHAPURAM: The Comptroller and Auditor General (CAG) has stated that KSEB, KSTP and PWD caused excess liabilities worth several crores to the government through irregularities. According to the audit report tabled in the Assembly, KSEB caused an additional liability of Rs 1317.66 crore by implementing a pay revision illegally without the permission of the government.

Revisions to employee benefits are subject to the government's prior approval, as per Sections 55 and 56 of the State Companies Association Act. However, in 2021, revisions to pensions, allowances, and salaries were made retroactively from 2018 without government approval. This resulted in an additional expense of Rs 543 crores every year. As a result, the state government incurred a total liability of Rs 1317.66 crore, including Rs 1011 crore for salary and Rs 306.66 crore for pension.

The audit report stated that salary revision was implemented in 1995, 2001, 2007, 2011 and 2016 without government approval. As a result, the government incurred liabilities of Rs 14,152.56 crores. However, the government did not take any action against this. The CAG alleged that this was financial mismanagement by the government.

Corruption worth Rs 21.84 crore in KSTP

The audit report further pointed out that irregularities worth Rs 21.84 crore were carried out by colluding with the contractor in the construction of the 54 km Thalassery-Valavupara road. In 2013, the contract was awarded to Essar Group for 156.33 crore. After they left, the contract was awarded to Dinesh Agarwal group in 2015. Dinesh Agarwal Group completed the work without using sufficient material. Yet, an additional amount of Rs 21.84 crores was sanctioned.

Irregularities worth Rs 2.87 crore by PWD

Irregularities worth Rs 2.87 crore took place in the construction of two flyovers carried out by the PWD on the national highway in Kozhikode in the name of the District Flagship Infrastructure Project. The CAG found that the Uralungal Society was given such a huge amount through wrong estimation.