Aizawl: The Comptroller and Auditor General of India (CAG) has asked the Mizoram government to investigate and take appropriate actions against officials responsible for incurring unnecessary expenditures amounting to Rs 5.3 crore under the state health and family welfare department.
The CAG report tabled in the assembly by Chief Minister Zoramthanga on Thursday said the Directorate of Hospital and Medical Education (DHME) under the health department had entered into a Memorandum of Understanding (MoU) with Intergen Energy Limited (IGEL) in 2012 for installation of renewable energy and water treatment plants at nine hospitals based on the suo-moto proposals submitted by the Delhi-based firm.
As per records of the DHME director, water treatment plants were installed by IGEL in five hospitals at the cost of Rs 50 lakh (Rs 10 lakh each for the hospitals) and payments were made to the firm between March 2012 and February 2014, the report said.
After installations, the firm provided water to four hospitals for a short duration ranging from four months to 2 years, and failed to provide water to a hospital against the MoU, which stated that the firm will ensure an uninterrupted water supply suitable for drinking for a period of 10 years after installations, it said.
In spite of the penalty provision in the MoU, the health department did not take steps against the IGEL and instead entered into another agreement in June 2019.
As per the new agreement, the previous MoU was terminated and the DHME would purchase the system or equipment installed in the five hospitals at the cost of Rs 9 crore in three installments.
The DHME paid Rs 4.80 crore (Rs 3 crore in July 2019 and Rs 1.8 crore in December 2020) as the first and second installments.
However, the supply of treated water was not resumed in all five hospitals, including Aizawl hospital and the state referral hospital at Falkawn near Aizawl since May 2020 after signing the buy-back agreement, the CAG report said.
The CAG also observed that all the hospitals were getting water supplies on priority from the state public health engineering department and there was no insufficiency in the supply of water to the hospitals before or during the period of MoU with IGEL.
The report said that the expenses amounting to Rs 5.3 crore incurred on the installation of water treatment plants and buy-back agreement was ‘avoidable’ as there was no water scarcity in the hospitals prior to the signing of the agreements.
It further said the department not only made an avoidable expenditure of Rs 5.3 crore but also created a liability of Rs 4.20 crore.
“The state government needs to investigate the matter and take action against the officials responsible for not invoking penalty provisions in time, signing an unnecessary buy-back agreement, and spending Rs 5.3 crore as well as creating a further liability of Rs 4.2 crore,” the report said.
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It also said that the engagement of IGEL was arbitrary and the proposal of the firm was agreed to by the department without ascertaining the actual need for water supply in the hospitals.
Congress was in power in the state between 2008 and 2018, while Mizo National Front (MNF) assumed power in December 2018.
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