CAG flags delay in finalisation of accounts of various PSUs, autonomous bodies in J&K

Jammu, Apr 08: The Comptroller and Auditor General (CAG) has flagged a massive backlog in the finalisation of accounts of Public Sector Undertakings (PSUs) and autonomous bodies in Jammu and Kashmir, with large number of accounts remaining in arrears as on March 31, 2024.

The CAG urged the UT government to ensure strict adherence to timelines for preparation and submission of accounts to strengthen financial discipline, transparency and governance.

The audit panel warned that the persistent backlog undermines transparency and legislative oversight, and recommended that the government ensure companies, corporations and autonomous bodies submit their annual accounts within a stipulated timeframe.

The CAG report on Union Territory (UT) finances for the year ended March 31, 2024, said, “Accounts in respect of only four companies were audited up to 2022-23. In respect of 35 companies and corporations, audit of 139 accounts was in arrears for periods ranging from one to twelve years.”

According to the report, eight autonomous bodies have together failed to submit 40 annual accounts, with delays ranging from three to 14 years.

The CAG stressed that delays in finalisation of accounts keep the results of government investments outside legislative scrutiny, hampering timely corrective measures and weakening accountability.

The report highlighted that several key entities have accumulated significant arrears.

Jammu and Kashmir Overseas Employment Corporation Ltd tops the list with 12 pending accounts since 2010-11, followed by Jammu and Kashmir Minerals Limited and two inactive companies — Jammu and Kashmir International Trade Centre Corporation Ltd and Jammu and Kashmir Road Development Corporation Ltd — each with nine years of arrears.

Jammu and Kashmir Cable Car Corporation Ltd has eight pending accounts since 2014-15, while Jammu and Kashmir Medical Supplies Corporation Ltd has seven accounts pending since 2015-16, it added.

Jammu and Kashmir Police Housing Corporation Ltd has six years of arrears, and Jammu and Kashmir Asset Reconstruction Ltd also has six accounts pending since 2017-18.

Among other major defaulters, Jammu and Kashmir Power Development Corporation Ltd has five accounts pending since 2017-18, while the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) has five pending accounts with no accounts submitted since 2018-19, it said.

Several infrastructure and transport-related entities also reported delays.

Jammu and Srinagar Mass Rapid Transit Corporations have four accounts pending each since 2019-20, while Jammu and Kashmir Power Transmission Corporation Ltd, Jammu and Kashmir Power Corporation Ltd and Srinagar Smart City Ltd have four pending accounts each.

Jammu Smart City Ltd has three accounts pending, while Jammu and Kashmir Forest Development Corporation Ltd has three pending accounts.

The report further noted that multiple corporations, including Jammu and Kashmir Projects Construction Corporation Ltd and Jammu and Kashmir Handicrafts (Sales and Export) Development Corporation Ltd, have four pending accounts each.

Among eight autonomous bodies, the CAG said that the Compensatory Afforestation Management and Planning Authority (CAMPA) accounts for the highest pendency with 14 accounts pending from 2009-10 to 2022-23.

Similarly, Sher-e-Kashmir University of Agricultural Sciences and Technology (SKUAST), Srinagar and Jammu have three pending accounts each for the period 2020-21 to 2022-23. Jammu and Kashmir Employees Provident Fund Organisation (EPFO) has not submitted four accounts from 2015-16 to 2018-19, it added.

Other bodies with arrears include Jammu and Kashmir Housing Board (four accounts), Khadi and Village Industries Board (three), Building and Other Construction Workers Welfare Board (four), and State Legal Services Authority (five), it added.

Similarly, accounts of the Food, Civil Supplies and Consumer Affairs departments in Kashmir and Jammu have remained pending for decades, with some periods dating back to the 1970s, it said.