Crucial records, office orders ‘concealed’ or ‘missed’ by audit team
ABRAR MATTOO
SRINAGAR, Nov 18: In a startling revelation, the Crime Branch Kashmir (CBK) has exposed how an audit report of a government institute has been influenced by a bunch of influential officers and officials to get the desired results.
According to a probe report of the Crime Branch, a copy of which lies with the Kashmir Despatch, the Directorate of Audit and Inspections (DGA&I), J&K conducted an audit of the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) in the year 2020-21 and submitted its report vide No. DAI/Audit/SA/EDI/1026 Dated 16-09-2020 and pointed out some “irregularities” in different aspects of the institute. However, acting on some complaints the Crime Branch Kashmir ordered a probe under PVK 79/2021 of Police Station Crime Branch, Kashmir.
During the probe, a certified copy of the 2nd Special Audit Report and Executive Summary were obtained from the office of the DGA&I, J&K government. However, it was reported by DGA&I that no reply to the audit observations has been submitted by the Auditee institute JKEDI so far. It also surfaced that a reminder has also been sent to the Auditee institute by DGA&I, J&K vide its communications No. DAI/Audit/Spl-audit/798-79 dated 16-06-2021 to file the reply to the audit observations along with the Action Taken Report as the report had been shared with the Finance Department, concerned Administrative Department and the concerned office also.
According to the CB report, during the probe the statements of 10 employees of JKEDI were recorded who remained associated with the conduct of the 2nd Special Audit in terms of JKEDI Order No. EDI/DIR-115 of 2020 dated 30-06-2020 or were the concerned dealing hands during the audit process. The employees stated to CB that due procedure was not followed in conducting the audit under reference and despite numerous requests/representations the manager reply has not been submitted by the then Director JKEDI.
“Further it has been alleged that the auditors have worked under the influence of two senior officers of JKEDI as their NOKs are working at senior positions in the Finance Department, J&K government, etc.,” reads the Crime Branch probe and findings report.
Based on this the Crime Branch the concerned auditors of DGA&I were examined and some procedural lapses came to the fore.
“However, the matter being technical in nature, a copy of the reply to audit report submitted by the former Director JKEDI, along with the contentions made by the employees was referred to the DGA&I, J&K government with the request to furnish an expert opinion & comments to this agency,” reads the CB report.
The DGA&I, J&K in terms of Order No. 67 DAI of 2021 dated 26-08-2021 constituted a 3-member committee under the supervision of Deputy Director Audit and Inspections, Kashmir to examine the entire issue and submit its report along with opinions and comments.
During the probe, the CB received a copy of the revised Audit Report/ expert comments from DGA&I, J&K vide its communication No. DAI/Audit/SA/EDI/1708-11 dated 08-11-2021 revising the earlier report based on which the complaint was lodged in CBK.
The revised report indicated that the documents & official orders which were allegedly concealed or missed during the previous exercise were also taken note of and the same also reflected in Director JKEDI communication No. EDI/DIR/112/2021/374 dated 14-09-2021.
In the revised expert report, the “irregularities” pointed out in the earlier 2nd Special Audit Report had either been dropped or modified or reasons/justification provided by the auditee institute were adduced.
What unfolded during the probe is really surprising as far as authenticity and genuineness of the audit reports is concerned.
The CB says that the examination of employees of JKEDI, auditors who conducted the 2nd Special Audit and relevant records collected during the probe indicated that a number of crucial documents, orders and records having a bearing on the audit observations were allegedly either concealed or missed during the course of the 2nd Special Audit. Pertinently, the CB probe conducted has indicated that majority of the records, especially concerning Human Resources were kept in the office of the then Executive Director JKEDI. Further the order related to the constitution of committee issued by him, was not shared with the auditors which otherwise would have facilitated their understanding of the working of the institute as well as ensured the availability of relevant documents for the audit team. The CB in its probe also says that due process has not been followed by the auditors who conducted the 2nd Special Audit of JKEDI as procedural lapses have been noted during the conduct of the audit on part of the auditors including non-issuance of half-margins, non-reference to the previous audits (including the 1st special audit), omissions/replacement of words from official records, notes of the auditee institute, application of inapplicable rules to the auditee institute by the auditors themselves, not affording opportunity of reply to the aggrieved employees, auditee institute, etc.
The Crime Branch in its probe has made it clear that the allegation that the auditors had worked under the influence of two senior officers of JKEDI as their NOKs are working at senior positions in the Finance Department cannot be ruled out. The auditors have excluded observations pertaining to them in the 2nd Special Audit report as discrepancies pertaining to qualifications of Ms. Naila Khanday, as reported in print media as well as deputation of Mr. M D Bhat to a very senior position in S&T Department, J&K Government in relaxation of the rules /technical qualifications as also not reflected in the report, reads the CBK report.
The probe further revealed that due process has not been followed in constituting the committee by the government in terms of the Order No. 1076-JK (GAD) of 2020 dated 27-11-2020 nor the committee itself has followed the due procedure while finalising its report. The committee included Director JKEDI as its Member Secretary and Presenting officer, who otherwise had to submit the mandated audit reply to the 2nd Special Audit report. Further in terms of the referred to government order, an officer not below the rank of Joint Director from the Directorate of Audit and Inspections J&K was to be nominated as the member of the committee but contrarily Deputy Director A&I, J&K who was involved in the conduct/supervision of the 2nd Special Audit of JKEDI and preparation of the report thereof was nominated as member. As such, the CB says that such a constitution of the committee resulted only in mere endorsement of the audit observations by the review committee.
The CB probe also revealed that neither the Directorate of Audit and Inspections, nor the Finance Department, nor the review committee constituted by the government afforded the opportunity to the auditee institute or the affected employees to file a reply to the audit observations (which otherwise is a procedural requirement). Also, the reasons for acting unilaterally during the entire audit process have also not been recorded by any of these authorities. So, the audit report and any further action initiated on its basis without considering the mandated reply of the auditee institute or the employees has been found procedurally incorrect during the probe, reads the Crime Branch Report. The CB has submitted the detailed report to the government along with its recommendations.
