CAG Flags Massive ITDA Scam in Odisha During 2018-23

TNI Digital: The Comptroller and Auditor General of India (CAG) has flagged suspected misappropriation of ₹148.75 crore in 11 Integrated Tribal Development Agencies (ITDAs) of Odisha between 2018 and 2023. The funds, meant for the socio-economic development of tribal communities in Scheduled Areas, were allegedly diverted through bank accounts operated by junior engineers (JEs) and assistant engineers (AEs).

According to the compliance audit report tabled in the Odisha Assembly on Wednesday, government funds of ₹621.79 crore were transferred to 71 bank accounts of the 11 ITDAs for departmentally executed works during the period under review. The audit found that 67 of these accounts recorded personal and irrelevant transactions amounting to ₹148.75 crore. These included ATM withdrawals, cheque payments, mobile phone recharges, UPI transactions, insurance premium payments, and purchases through point-of-sale machines. The report noted these activities as indicators of suspected misappropriation of public money.

The ITDAs, established in the state since 1979-80, were tasked with implementing welfare schemes in tribal areas covering education, healthcare, and livelihoods. However, the audit revealed serious lapses in accountability and governance. None of the sampled ITDAs had prepared annual accounts, a statutory requirement under the Societies Registration Act, 1860. The absence of financial statements prevented detection of losses, wasteful expenditure, or inefficiencies.

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Further, the CAG observed irregularities in the execution of infrastructure projects. Works were reportedly carried out by contractors who were not selected through an open and transparent tendering process, violating provisions of the Odisha Public Works Department (OPWD) Code.

To address the gaps, the CAG recommended that the SC/ST Development Department immediately stop the irregular practice of JEs and AEs operating bank accounts for departmental works. It also urged enforcement of the OPWD Code in project execution and called for a comprehensive review of all bank transactions carried out by engineers across ITDAs. The report further suggested fixing responsibility on officials found guilty of suspected misappropriation.

With crores of rupees allocated for tribal development schemes, the findings raise questions about whether the intended benefits are reaching the target population. The report has triggered concerns over governance and financial management within the ITDA framework in Odisha.

 

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