Draft Report on Performance Audit.doc

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Report No 20 of 2006

Draft Report on the PerformanceAudit on Tsunami Relief,

Rehabilitation and Reconstructionrelating to the nion Territor! of Andaman and Nicobar "slands


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#ighlights

The Andaman and Nicobar Administration (Administration) did not play a proactive role in

increasing the disaster preparedness and disaster mitigation management either in the pre-

Tsunami or in the post-Tsunami period. (Para 3.1.1)

The policy objectives are yet to be suitably amended or better disaster ris! assessment"

mitigation" prevention and preparedness in case o a uture Tsunami. (Para 3.1.1)

#ue to non-completion o $oastal Area %apping" demarcating the &No $onstruction 'one and

& igh Tide *ines " the Administration is unable to identi y the violators o $oastal +egulation

'one. (Para 3.1.1)

+e,uirement o unds projected by the Administration or Tsunami relie " rehabilitation and

reconstruction or!s as unrealistic and highly in lated. (Para 3. .1)

Absence o $entral Accounting /ystem and poor management o unds resulted in poor utilisation

o unds leading to surrender o unds. (Para 3. . )

Pace o relie " rehabilitation and reconstruction or!s in Andaman and Nicobar 0slands (AN0)

remained slo due to poor utilisation and improper allotment o unds (Para 3. . )

#epartmental advances o +s 2.1 crore dra n rom % 2 remained unadjusted or periods

ranging upto 12 months in violation o 4eneral inancial +ules. (Para 3. . )

+elie unds amounting +s 1.3 la!h ere misutilised or payment o or!ing lunches" purchase

o /0% cards" recharge cards" mobile phones" revenue stamps" TA" stationery charges etc.

(Para 3. . )

+s 5 . la!h and +s 2.65 la!h ere diverted rom % 1 and % or relie and

rehabilitation or!s. (Para 3. . )

+s 1 . la!h under the Plan budget o % 2 " meant or enhancing preparedness in managing

disasters" as dra n as departmental advance and irregularly diverted or other purposes.

(Para 3. . )

0n 1 cases" unds rom % 2 and *47s +elie 8und amounting to +s 15.9 crore ere !ept

in ban! accounts or phased out payment. The ban! accounts ere opened and operated ithout

prior permission o the %inistry: $4A in violation o the codal provisions.

(Para 3. . )

;ouchers: #etails or amount o +s 2 .6 crore spent by the %inistry o ome A airs (% A)

out o unds allotted to AN0 or purchase o relie : rehabilitation material ere not available.

/imilarly" details: vouchers o purchases made by the #eputy +esident $ommissioners at


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$hennai and


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The #irectorate o Bducation made purchases orth +s 2 .>9 la!h ithout observance o codal

ormalities. (Para 3.3.2)

?ills or purchases orth +s .66 la!h ere processed by the #irector o Bducation and che,ues

issued by the PA@ ithout actual receipt o the goods. (Para 3.3.2)

The Blectricity #epartment procured 2 #4 /ets costing +s >6. 9 la!h ithout obtaining the

minimum number o bids as prescribed in the 4eneral 8inancial +ules. (Para 3.3.2)

1> 4ensets procured by the Blectricity #epartment at a cost o +s 16 . 2 la!h and distributed to

relie camps and 4overnment #epartments ere neither ta!en bac! nor their cost recovered.

(Para 3.3.2)

The Blectricity #epartment sought or e=penditure sanction o +s 5.59 crore rom the %inistry o

Po er to ards purchase o #4 /ets and TC# materials but made part payment o +s 1.26 crore

ithout a aiting the sanction o the %inistry. (Para 3.3.2)

TC# materials ere procured by the Blectricity #epartment ithout proper assessment o the

actual re,uirement resulting in huge stoc! lying idle. (Para 3.3.2)

The @:o the #eputy $ommissioner (Andaman)" 3 D** C 4/% %obile phones orth +s . 3

la!h ithout observing any codal ormalities and distributed them mainly to ineligible o icials.

0n addition call charges or the above phones ere also being paid" hich as irregular.

(Para 3.3.2)

Aarding o the or! o reconstruction o 0$#/ $entres to AN00#$@ instead o

APD#:$PD#:A* D resulted in avoidable e=tra burden in the orm payment o service ees to

AN00#$@. (Para 3.3. )

The physical and inancial achievement in implementation o the assistance pac!age to the

a ected ishermen as very poor and the #irectorate o 8isheries as unable to utiliEe the unds

allocated. 0n addition" the norms prescribed or assistance to ishermen as also not strictly

adhered to. (Para 3.3.9)

#ue to lac! o e ective coordination bet een the Administration and the N4@s" relie and

rehabilitation materials ere procured ar in e=cess o re,uirement resulting in huge ,uantity o

items lying idle even a ter a lapse o one year. (Para 3.3.6)

@ut o schools decided by the Administration to be reconstructed by the N4@s and other

agencies" only 1 schools have been completed. (Para 3.3.6)

0nventory Audit Team o the Administration ound that there as no reconciliation o records

in respect o the relie and rehabilitation materials received and distributed.

(Para 3.3.5)


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A Public 0nterest *itigation as iled due to de iciencies on the part o the Administration to

provide ade,uate e=-gratia: compensation and post-Tsunami +ehabilitation measures.

(Para 3.3.>)

The inancial progress o APD# as only .2 per cent in - 9 till #ecember and the

physical progress as also lagging behind in the +elie : +econstruction activities.

(Para 3.2. )

#elay on the issue o construction o Permanent /helters has made uncertain the shi ting o

a ected population presently housed in 0ntermediate /helters. (Para 3.2. )

Post haste decision to procure desalination plants" #4 /ets and /%$ Panel Tan!s be ore

inaliEing their locations and completion o initial base or!s resulted in non-installation o

desalination plants valued at +s 3 . 1 la!h. (Para 3.2. )

complete and 29 part pre- abricated structures ere lying unused at ut ?ay.

(Para 3.2. )

B,uipment such as ?ulldoEers" tractors etc. ere lying idle or long periods. (Para 3.2. )

A majority o the ?ailey bridges have not yet been installed de eating the purpose or hich the

bridges ere to be erected and installed even a ter a lapse o one year rom the date o their

procurement. (Para 3.2. )

*ac! o internal control coupled ith lac! o coordination bet een the #ivisions o APD#

resulted in procurement o materials in e=cess o re,uirements. (Para 3.2. )

0njudicious procurement o plastic ropes ithout re,uirement resulted in an e=penditure o +s

1.9 crore being rendered un ruit ul. (Para 3.2. )

#ue to acceptance o abnormally high rates above the mar!et rate" the APD# incurred an

avoidable e=tra e=penditure o +s 3.2 la!h in construction o a Tsunami %emorial.

(Para 3.2. )

>2.3 %T o $40 /heets ell into the sea hile unloading at .36 la!h to ards cost o the sheets and its transportation. (Para 3.2. )

#ue to negligence" a ,uantity o 1 metres o cables ere not unloaded at $ampbell ?ay

resulting in avoidable e=tra liability due to double transportation. (Para 3.2. )

The inancial and physical progress o A* D as o #ecember as very poor resulting in

delay o repair" restoration and reconstruction or!s. (Para 3.2. )

#ue to improper planning" an injudicious e=penditure o +s 35. la!h as incurred to ards

construction o a temporary jetty at


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/ystem o assessment o damage and identi ication o bene iciaries as not oolproo .

(Para 3. .1)

/ystem prescribed under e=isting 8inancial +ules or payment through Ac,uittance +olls and

payments made to illiterates on the basis o thumb impressions as not ollo ed. As a result"

these payments could not be vouchsa ed. (Para 3. .1)

Procedure or assessment o crop: land loss in Tribal areas in absence o revenue records and

identi ication o ne=t o !in on the &Tuhet system basis does not have the approval o the

4overnment o 0ndia. (Para 3. .1)

As the Andaman and Nicobar *and +egulation Act speci ies that all land vests in 4overnment"

payment o compensation or land loss to individuals as technically incorrect. %oreover" norms

or compensation as not ormulated or loss o non- agricultural land.

(Para 3. . )

A dra t scheme or $ompassionate Appointments to the dependents o the government servants o

Administration ho had died: ere missing in Tsunami disaster as sent to the 4overnment o

0ndia or approval. o ever" appointments under the proposed scheme ere being made ithout

receipt o the approval o the scheme. (Para 3. .3)

0nstructions received rom N#%# and incorporated in the #%P are yet to be approved by the

4overnment o 0ndia. (Para 3.9)

All the reports on Natural $alamities as prescribed the % A and %@8 ere not being urnished

by the Administration a ter Fuly . (Para 3.6.1)

No %onitoring $ell has been constituted to monitor the ongoing relie " rehabilitation and

reconstruction activities. (Para 3.6. )


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Recommendations

The Disaster Management Regulation and Disaster Management Plan may be suitably

amended with special emphasis on disaster preparedness and disaster management in

case of a Tsunami.

Emergency Operation Centres may be set up at the earliest in both Andaman and icobar District for better pre!disaster assessment" forewarning" dissemination and

mitigation of disasters

All #ey departments may be imparted orientation training programmes in dissemination

and e$acuation techni%ues. &n$ol$ement of common people may also be encouraged

through holding of wor#shops 'seminars' awareness camps etc to increase public

awareness to disasters.

Construction of sea!walls" coral reefs" plantation of mangro$es" as well as identification

and retrofitting of all $ulnerable structures may be ta#en up and completed at the earliest to reduce the impact of damage in future Tsunami disaster.

Mapping the coastal areas for ha(ards" $ulnerability and ris# analysis alongwith

demarcation of )*igh Tide +ines, and ) o Construction -ones, may be completed

e peditiously and inhabitants in these (ones mo$ed' resettled in other areas. &n case of

shortfall of necessary re$enue land for this purpose" proposal for de!reser$ation of forest

area may be sent to Ministry of En$ironment and /orests for appro$al. /urther" norms

for ci$il constructions in coastal areas should be formulated incorporating therein

Tsunami resistant designs and plans. 0iolators of such norms as well as Coastal -one Regulations should be identified and prosecuted.

Cases of resettlement due to the change in geomorphology of the islands should be ta#en

up and land to the affected families should be pro$ided at higher regions" if necessary by

de!reser$ation of forestland on one!time basis with the appro$al of the Ministry of

En$ironment and /orests.

The actual re%uirement of fund for relief" rehabilitation and reconstruction may be re!

assessed by ta#ing into account the sur$ey reports" studies by technically trained people'

agencies and realistic inputs in order to pro1ect the actual re%uirement on a realistic

basis.

A Central Accounting 2ystem should be put in place with a mechanism of effecti$e

internal control to monitor the utilisation of the funds so that funds recei$ed from all the

sources are properly accounted for and allotment of funds to $arious departments are

also need!based. Ade%uate steps should be also ta#en for a better fund management


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Effecti$e measures should be underta#en for proper utilisation of the funds recei$ed

from $arious sources in order to step up the pace of relief" rehabilitation and

reconstruction wor# as well as to ensure that e !gratia payments are recei$ed by the

beneficiaries at the earliest.

&t should be ensured that the funds" which ha$e been allocated for relief" rehabilitation

and reconstruction acti$ities" are not surrendered but are fruitfully utilised in order to

fulfill the purpose of allotment of such funds.

Action may be ta#en up for release of the balance of the consented amount of Rs 34.54

crore from Member of Parliament +ocal Area De$elopment 2cheme 6MP+AD27. Action

also needs to be ta#en to e pedite the estimates of the remaining three wor#s and to

obtain the appro$al of the 8o$ernment of &ndia for all the pro1ects in order to utilise the

funds recei$ed under MP+AD2 at the earliest for the pro1ects for which such fund was

released.

All departmental ad$ances should be ad1usted immediately and it should be ensured that

funds released under M*!995: are not di$erted for other purposes. 2imilarly" funds from

other heads should also not be di$erted for relief purposes without the appro$al of the

competent authority for such di$ersion. All the di$ersions made till date should be

regularised by e !post facto appro$al of the competent authority. /urther" additional

re%uirements under any Ma1or *ead should be pro1ected and necessary re!allocations

made by the appro$al of the competent authority.

Drawal of departmental ad$ances for deposit wor#s should be stopped forthwith and

procedure prescribed under Paras ;.: and ;.99 of Ci$il Accounts Manual should be

strictly followed for transfer of funds in connection with deposit wor#s gi$en to

Andaman Public udget should particularly ensure that proper procedure is

followed in issuance of che%ues against bills passed and to effecti$ely monitor the

ad1ustment of departmental ad$ances drawn.

&ncorrect payments made from Prime Minister?s Relief /und should be reco$ered at the

earliest.


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Money recei$ed from relief funds should not be utilised for purposes other than those for

which they are pro$ided.

Details' 0ouchers in respect of e penditure incurred by the Ministry of *ome

Affairs" Deputy Resident Commissioner" Chennai" Deputy Director of 2hipping

2er$ices" Chennai and Deputy Resident Commissioner" @ol#ata out of the funds

under M*!995: may be obtained and properly accounted for.

The physical and financial progress of the repair" restoration and reconstruction

acti$ities may be paced up. Proper monitoring mechanism with internal control

may be setup to ensure completion of all the ci$il wor#s as well as to a$oid losses'

unnecessary e penditure' in1udicious e penditure due to negligence.

All the ci$il wor#s which were either completed or ta#en up without obtaining

sanction of the competent authority may be regularised by obtaining e !post facto

appro$als

The issue of construction of Permanent 2helters may be finalised early in

consultation with the Ministry of rban De$elopment and the wor# of Permanent

2helters ta#en up an early date so as to shift the affected population presently

housed in the &ntermediate shelters.

Effecti$e action may be ta#en for installation of the desalination plants" bailey

bridges = pre!fabricated structures and for gainful utili(ation of the bulldo(ers"

tractors" trailers etc. so as to fulfill the purposes for which the abo$e materialswere procured' hired.

Physical $erification of all the materials procured for rehabilitation and

reconstruction may be conducted so as to reconcile the discrepancies in the

$arious store records.

The entire %uantity of plastic ropes procured may be fruitfully utilised at the

earliest and in future assessment of re%uirement may be made on realistic basis to

a$oid unfruitful' wasteful e penditure and' or procurement in e cess of actual

re%uirement.

Procurement of materials may be made as per the prescribed procedures and in

all cases care may be ta#en to ensure that materials are not procured at rates

higher than the ma imum permissible limit.


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Codal formalities should in$ariably be followed in all cases of future procurement and

stoc# registers'records in respect of materials should also be maintained. Records in

respect of materials already recei$ed should be reconstructed after reconciling the

%uantities recorded in the ships? manifests" 8odown?s stoc# registers" 2pecial Relief

Officers? stoc# records and 2ector Officers? records. Materials procured by the

Administration and those donated by the 8Os should also be segregated and accounted

for separately.

Either future claims of Andaman and icobar &slands &ntegrated De$elopment

Corporation 6A &&DCO7 should be ad1usted against the ad$ance payment of Rs :4.44

la#h already paid to them or the same may be reco$ered at the earliest

&rregular payment of Rs B.B4 la#h made to the supplier of bicycles" M's Ambi#a E ports

P$t. +td." +udhiana" may be reco$ered as the supplier had committed to assemble the

bicycles at Port >lair at their own cost.

O$erpayments made to Consumers Co!operati$e 2ociety +td. should be reco$ered

without further delay.

Relief funds should not be used for the procurement of items such as mobile phones. E !

post facto appro$al of the Ministry may be obtained for regularisation of the abo$e

procurement. /urther" mobile phones pro$ided to ineligible officials should be ta#en bac#

and payment of call charges stopped immediately .The irregular payments of call charges

made in respect of ineligible officials may also be reco$ered from such officials.

&n future" procurement of stores may be made after realistic assessment of the

re%uirement so as to a$oid idle in$estment of unutilised stores.

Materials lying in bags" bundles" cartons etc should be opened and articles" which ha$e

already become time!barred" may be disposed off. Any perishable article should be

distributed to the people li$ing in intermediate shelters at the earliest before they become

unusable" particularly in the light of the directions issued by the Circuit >ench of @ol#ata

*igh Court for continuance of free ration supply beyond 3.34.944:. An Action Plan

may also be e$ol$ed for fruitful utilisation of all other materials recei$ed for

relief'rehabilitation.

Materials such as Tele$isions" >eds etc" which were distributed to the relief camps may

be located and ta#en bac# to stoc# and stored properly for future use. 2toc# Registers

showing the receipt and issue of bicycles" +P8 sto$es and sewing machines may be

reconstructed on the basis of a$ailable records. 2imilarly" utilisation of the items

transferred from Directorate of 2ocial


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The gensets distributed to $arious islands may be ta#en bac# from the $illage captains'

departments or their cost reco$ered from them.

The entire %uantity of bamboos procured may be fruitfully utilised at the earliest and in

future assessment of re%uirement may be made on realistic basis to a$oid unfruitful'

wasteful e penditure and' or procurement in e cess of actual re%uirement.

All the tent parts of the : tents which are yet to be assembled needs to be located and

stored properly for future use. Tents already distributed and which are now not re%uired

for relief purpose should also be ta#en bac# to stoc#.

Against purchases of Rs ;.;3 crore from Power 8rid Corporation of &ndia +td. 6P8C&+7

and ational Thermal Power Corporation 6 TPC7" e penditure sanction of the Ministry

of Power has been sought for Rs ;.;B crore which needs to be reconciled. /urther

payments to P8C&+ and TPC in respect of the abo$e purchases may be released only

after receipt of administrati$e appro$al and e penditure sanction of the Ministry of

Power and after deduction of the amounts already released.

2ince the awarding of construction wor# to A &&DCO in$ol$es payment of additional

liability in the form of ser$ice charges' profit margin" the wor#s should be awarded to the

construction agencies of the 8o$ernment e.g. AP


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The appro$al of the 8o$ernment of &ndia for identification of tribal beneficiaries on the

basis of )Tuhet, system may be obtained to regularise the payments made in de$iation of

the appro$ed guidelines. &n other cases" the system of identification of beneficiaries

should be made foolproof after ta#ing into account all the prescribed' specified norms in

order to ensure that the genuine beneficiaries are not left out and irregular payments

made to the ineligible persons may be reco$ered.

Appro$al of the 8o$ernment of &ndia should be obtained for the methodology adopted for

assessment of crop'land loss in tribal areas.

E !gratia payment'compensation is made by che%ues only to ensure transparency in

distribution of gratuitous relief amounts

All payments made through Ac%uittance Rolls including payments made on the basis of

thumb impressions should be certified by an authorised officer so as to authenticate such

payments.

Action may be ta#en to re!issue all the time!barred che%ues and to issue the undisbursed

che%ues to the concerned persons and to ensure that all eligible beneficiaries are paid

e !gratia' compensation' enhanced agricultural compensation without any further delay.

Payment of compensation for land loss to indi$iduals in A & should be regularised" if

necessary" either by suitably amending the Andaman and icobar &slands +and

Regulation Act and' or the rele$ant sanction orders. orms may also be formulated for

compensation of loss of non!agricultural land.

Compassionate appointments under the proposed scheme should be stopped till appro$al

of the 8o$ernment of &ndia to the scheme is accorded. The matter may also be ta#en up

with the 8o$ernment of &ndia for e pediting its appro$al. Any compassionate

appointments already made under the proposed scheme should also be regularised with

the appro$al of the 8o$ernment of &ndia.

Action may be ta#en for the finalisation of the Disaster Management Plan" including

therein all the guidelines'instructions recei$ed from the 8o$ernment of &ndia" at an early

date.

All the prescribed periodical returns to the M*A and 8o$ernment of &ndia may be sent

timely.

An effecti$e Monitoring mechanism may be instituted to assess the physical and financial

progress of the implementation of the $arious acti$ities and to coordinate between the

$arious implementing agencies in order to increase the efficacy of the relief"

rehabilitation and reconstruction measures.


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Draft Report on the Performance Audit on Tsunami Relief, Rehabilitation and Reconstructionrelating to the nion Territor! of Andaman and Nicobar "slands

$% "ntroduction

An earth,ua!e o the magnitude o >.3 on the +ichter scale occurred at 9 > hours 0/T

on 9.1 . 2 o the coast o /umatra generating a massively destructive Tsunami that hit the

coastal states o Andhra Pradesh" Tamil Nadu"


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Audit +ethodolog!

The Per ormance Audit +evie under the supervision o #irector (AN0) began the revie

ith an Bntry $on erence on >.11. under the $hairmanship o the $hie /ecretary"

Andaman and Nicobar Administration (Administration) in hich all the audit objectives ere

discussed ith the concerned o icers o the various departments o the Administration. The

Per ormance Audit +evie as ta!en up as per the +evie 4uidelines and covered both the

#istricts o Andaman and Nicobar 0slands. The indings on all the themes given in the 4uidelines

ere initially communicated to the Administration through Audit @bservations and the +evie

as concluded by holding an B=it $on erence on GGGGGGGGGGGGG herein all the Audit 8indings"

@bservations and +ecommendations ere discussed ith the o icers o the Administration.

% Audit -indings

%$ &etting up of "nstitutional +echanism for Disaster +anagement

A $risis %anagement Plan ($%P) as circulated by the $abinet /ecretary in Fune 1>56"

hich as subse,uently revised in 1>5>.0n line ith the suggestions o the $%P" the

Administration constituted a nion Territory *evel #isaster %anagement Authority in November

1. /ubse,uently" in November 3" the /ecretary (/ecurity)" $abinet /ecretariat in ormed

the Administration to prepare detailed $ontingency Plans or handling crisis e ectively and in aell planned manner. Accordingly a #isaster %anagement +egulation (#%+) and a #isaster

%anagement Plan (#%P) ere ormulated. o ever" neither the #%+ nor the #%P listed

Tsunami as a potential haEard or the Andaman and Nicobar 0slands (AN0) though t o instances

o Tsunami occurrences in the AN0 ere mentioned in the #%P. As such" no special measures in

case o a Tsunami disaster ound place either in the #%+ or the #%P. Bven a ter a lapse o one

year o the Tsunami disaster" the #%+ and the #%P are yet to be suitably amended to de ine the

policy objectives or disaster ris! assessment" mitigation" prevention and preparedness in case o

a uture Tsunami.8urther" the ollo ing acts ould indicate that the Administration did not play a pro-

active role in increasing the disaster preparedness and disaster mitigation management either in

the pre-Tsunami or in the post-Tsunami periodH-

a) 0n order to augment the pre-disaster ris! assessment techni,ues" the development o

Tsunami detection" orecasting and arning dissemination centres ere o immense


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importance. Although plans or establishment o our &Bmergency @peration $entres

(B@$) have been approved at an estimated cost o +s. 93.2 la!h but the or! o only

one B@$ has been ta!en up till date.

b) Dith a vie to increase preparedness and or mitigating uture disasters" the #%P

envisaged imparting orientation training to the !ey unctionaries belonging to Police

8orce" 8ire /ervice" ome 4uard @rganisation" #octors" Bngineers etc. and selected

members o the public in orecasting" arning" dissemination and evacuation techni,ues

but no such training programmes had been organised by the Administration till date.

Bven hen" the National 0nstitute o #isaster %anagement organised a training

programme on disaster management in Fuly " in hich the Administration as

re,uired to nominate nodal o icers" members o T: #istrict #isaster %anagement

$ommittee" /#%s: A#%s" only one o icer as nominated by the Administration or

the said training.

c) /i= satellite phones received rom the %inistry o ome A airs (% A) on 6.1 . 2

ere used or maintaining lin! ith Nicobar #istrict during relie operations. 0n

8ebruary " the #irector (N#% 000)" % A re,uested the Administration to return the

phones and to procure ne ones so as to !eep them in readiness or disaster

management. Although the satellite phones have been returned to the % A a ter relie

operations but ne ones are yet to be procured.

d) 199 buildings ere identi ied as vulnerable structures in Port ?lair itsel in the pre

Tsunami period" but the or! o retro itting as not ta!en up. 0n the post-Tsunami

period" the or! o identi ication o vulnerable structures is yet to be completed. The?uilding ?ye-*a s have not been revie ed a ter Tsunami. 8urther" the *and se and

'oning +egulations are yet to be ormulated.

e) Neither any assessment o damages to coral ree s has been made nor plans or

construction o location speci ic sea- alls and coral ree s or mitigating uture Tsunami

disasters have been prepared despite a lapse o more than one year rom the Tsunami

disaster.

) A total o 6199 hectares o land as targetted or coastal belt plantation. o ever" due

to non-identi ication o areas at many places" only 1 1 hectares ere targetted or plantation during the year - 9 against hich >5. > hectares has been achieved till

31.1 . .


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1.1.2 nder /ection 3(1) and 3( ) o the Bnvironment (Protection) Act 1>59" the coastal stretches

o AN0 ere classi ied under $ategory 0; ($+'I0;). The Act provides that the Administration

should prepare $oastal 'one %anagement Plans ($'%P) identi ying and classi ying the $oastal

+egulation 'one ($+') Areas and obtain approval o the %inistry o Bnvironment and 8orest

there or. The or! o preparation o $'%P in AN0 as initiated only in August 2 in

pursuance o the directions o the on7ble


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area may be sent to Ministry of En$ironment and /orests for appro$al. /urther" norms for

ci$il constructions in coastal areas should be formulated incorporating therein Tsunami

resistant designs and plans. 0iolators of such norms as well as Coastal -one Regulations

should be identified and prosecuted.

f7 Cases of resettlement due to the change in geomorphology of the islands should be ta#en up

and land to the affected families should be pro$ided at higher regions" if necessary by de!

reser$ation of forestland on one!time basis with the appro$al of the Ministry of En$ironment

and /orests.

%2 Ade.uac! of relief funds

3. .1 An amount o +s 39 1.21 crore hich as later revised to +s 3539. 9 crore as

projected by the Administration to the %inistry o ome A airs in Fanuary through a

&%emorandum on Barth,ua!e: Tsunami #amages as the re,uirement o unds or the purpose o

relie " rehabilitation and reconstruction. /uch re,uirement as computed on the basis o inputs

received rom various departments o the Administration.

/crutiny o the &%emorandum on Barth,ua!e: Tsunami #amages revealed that the

re,uirement o unds as highly in lated due to the ollo ing reasonsH

(a) Adoption o di erent mar!et rates to those projected by the concerned

departments.

(b) Projection o demand ithout actual survey o losses: damages.

(c) #uplication o demand.(d) $omputation o re,uirement in e=cess o prescribed norms.

(e) Projection on purely ad-hoc basis.

( ) 0nclusion o projects not connected to relie " rehabilitation and reconstruction.

8urther" the +ecommendation o the $entral Team during their visit to the 0slands rom

31. 1. to 1. . as +s. >55.5 crore only against the projected re,uirement o +s.

3539. 9 crore.

3. . 8unds or Tsunami +elie " +ehabilitation and +econstruction ere received bythe Administration rom the ollo ing sources during the years 2- and - 9H-

(a) Prime %inister7s +elie 8und (P%7s +elie 8und)

(b) *ieutenant 4overnor7s +elie 8und (*47s +elie 8und)

(c) %ember o Parliament *ocal Area #evelopment /cheme (%P*A#)

(d) ?udget Allocation under % 2 (+ajiv 4andhi +ehabilitation Pac!age)


19/70

o ever" complete details o the monetary assistance and relie materials provided by N4@s:

B=ternal Agencies to the a ected people ere neither available nor accounted or by the

Administration.

The utilisation vis-J-vis und received: allotment rom each source as test chec!ed and the

indings are detailed belo H-

a/ Prime +inister s Relief -und

(i) An amount o +s 1" " :- as e=-gratia rom the P%7s +elie 8und or payment to

the ne=t o !in o identi ied dead and missing persons as announced. Till the end o

#ecember " the names o 211 cases o identi ied dead and 363 cases o missing

persons have been or arded by the Administration to the Prime %inister7s @ ice

rom 8ebruary- %arch on ards or sanction o e=-gratia. $ases o 9 identi ied

dead and 1 missing persons have not yet been or arded to P%7s @ ice or ant

o ban! account numbers. $he,ues in the names o the legal heirs are being sent

directly to the bene iciaries. 0n addition" an amount o +s 1 . 3 crore has also been

received by the Administration rom the P%7s +elie 8und to ards social

in rastructure reconstruction in the Tsunami a ected areas. The entire und is yet to

be utilised.

(ii) The identi ication o the ne=t o !in in respect o missing persons or payment o e=-

gratia rom P%7s +elie 8und as incorrectly done in 1 cases in Nicobar #istrict.@ut o this" in 6 cases the e=-gratia as sanctioned and disbursed. @n detection o the

error" recovery has been e ected in 2 cases but recovery in respect o 3 cases relating

to


20/70

#uring - 9" the %embers o Parliament had consented or release o an amount

o +s. 1.1 crore or nine rehabilitation or!s in Tsunami-a ected areas. @ut o this" only

+s. 1 .6 crore has been received rom the %embers o Parliament" but no action has been

ta!en to obtain the remaining amount o +s 1 .2 crore. Dhile estimates or si= projects have

been sent to 4overnment o 0ndia or approval" the estimates or the remaining three projects

are still a aited. As such" the entire und o +s 1 .6 crore received or Tsunami related

rehabilitation or!s remains unutilised.

d/ 4udget Allocation under +#5 22 7 3Ra*i' andhi Rehabilitation Pac8age/

The 4overnment o 0ndia had approved a total assistance o +s 5> .19 crore (+s

5 1.55 crore in 2- and +s 6 . 5 crore in - 9 as additional compensation or

armers) against hich only +s 6 1.>> crore had been released under the %ajor ead- 2 -

+elie on Account o Natural $alamities. The unds released and utilisation thereo as o

@ctober as as underH-

3Rs in crore/

-inancial 9ear -unds under +#5 22 7 tilisation as

of $0:07Plan Non Plan Total

2- .2> 1 . 1 . 1 1 3. 3- 9 .1 62.35 69.25 12>.29

TOTAL2%7; 6;;% 0 5 crore as surrendered. @n the other hand" no

und under % - 2 as allotted in 2- to Port %anagement ?oard (P%?)

although they ere responsible or the repair and reconstruction o jetties. As a result

an amount o +s 2. 6 crore had been utilised by P%? by diverting Plan unds rom


21/70

% - 1 and placing it ith the Andaman *a!shad eep arbour Dor!s (A* D)

or #eposit Dor!s. Though the Administration had not sought or the entire amount

o +s . crore announced initially under the special pac!age" Plan unds ere

diverted or Tsunami related or!. 8urther" unds provided under % - 2 ere also

not ully utilised.

(iii) tilisation o und under % - 2 in - 9 till @ctober as also very poor

as detailed in Anne=ure-0. @nly +s 12>.29 crore as utilised against allotment o +s

69.25 crore hich translates into .>3 per cent und utilisation. As in 2- " the

P%? again diverted an amount o +s. 2.13 crore in - 9 also rom % - 1

(Plan) to ards repairs and rehabilitation projects. 0n vie o the poor utilisation o

the relie unds" it may be concluded that the pace o relie " rehabilitation and

reconstruction or! in the Andaman and Nicobar 0slands is very slo .

(iv) As sho n in Anne=ure-0" t o departments sho ed a high percentage o utilisation o

unds in - 9" namely P%? (> .2> per cent) and #irectorate o +ural

#evelopment (51.93 per cent). o ever" they had not actually utilised the unds but

had merely placed them as deposit or! to other departments i.e." A* D (#eposit

Dor! o +s 6.1 crore) and 'illa Parishad (#eposit Dor! o +s 1 . crore)

respectively. The procedure o placement o unds" or deposit or!s" ith the

e=ecuting agencies through che,ues payments as in violation o the procedure

prescribed under Paras 5. and 5. o the $ivil Accounts %anual. The utilisation in

respect o other departments o Administration varied rom . per cent to 25. per

cent. #ue to allotment o und ar in e=cess o actual re,uirement" seven departmentssurrendered an amount o +s 6 . 2 crore in #ecember .

(v) #epartmental Advances o +s.5.>2 crore relating to 2- (+s. .1 crore -Plan

and +s. 5.6> crore -Non-Plan) and +s. 2 .19 crore relating to - 9 (+s. . 3 -

Plan and +s. 22.93 crore -Non-Plan) ere dra n rom % - 2 . The entire amount

o Rs 7 %$0 crore " as per Anne=ure-00" dra n during 2- and - 9 remained

unadjusted or periods ranging upto 12 months though the same ere re,uired to be

adjusted ithin one month o their dra als. 8urther" @ut o the advances o +s. 5.>2

crore relating to 2- " +s. .93 crore as dra n in %arch and !ept in currentaccounts in ban! merely to avoid lapse o unds. Non-adjustment o #epartmental

advances and dra al o unds at the ag end o the inancial year to avoid lapse o

unds ere in violation o the provisions o 4eneral 8inancial +ules. Test-chec! o

the e=penditure incurred rom the departmental advances revealed that these unds

ere incorrectly utilised or payment o or!ing lunches (+s. 2.> la!h)" payment o


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air ares to pro essors on study tour (+s. 1. 6 la!h)" purchase o /0%:+echarge cards

or mobile phones and revenue stamps (+s.1. la!h). 0n addition" advances or

various incidental e=penses (+s. 3. > la!h) ere given to o icials involved in relie

or!" hich ere also lying unadjusted. 8urther" an amount o +s. 1 la!h out o the

unds released under the plan budget o % - 2 " meant or enhancing preparedness

in managing disasters" as dra n as departmental advance and irregularly diverted

or other purposes.

(vi) 0n 1 cases" unds rom % - 2 and *47s +elie 8und amounting to +s. 15.9

crore" as per Anne=ure-000" ere !ept in ?an! accounts or phased out payments"

hich ere opened and operated ithout prior permission o the %inistry:$ontroller

4eneral o Accounts ($4A) in violation o the provisions o the +eceipts and

Payments +ules and $ivil Accounts %anual. /everal irregularities ere noticed in

the opening and operation o such accounts. T o such cases are cited belo as

illustrative e=amplesH-

a) A departmental advance o +s. > "2 " :- as dra n by the Assistant

$ommissioner (/ettlement) in %arch in connection ith payment o e=-

gratia:assistance or severely and marginally damaged houses K +s. :- to

29 amilies. The bill as passed by the PA@-0" Port ?lair and the che,ue or

the above amount as issued in avour o /yndicate ?an! instead o the ##@"

or reasons not on record. The Assistant $ommissioner (/ettlement) opened a

current account (No.>> 3 6 35) on 1 th %arch ith the /yndicate

?an! depositing the said che,ue ith them. o ever" prior permission o the%inistry:$4A" as re,uired under +ule 1>1 o the +eceipts and payments +ules

and Para 19.6 o the $ivil Accounts %anual as not ta!en. $he,ues or the e=-

gratia payments ere issued rom this account rom 1 st %arch on ards although

this account as credited ith +s. > "2 " :- only on 3 rd %arch . As the

account as a current account" the ban! cleared the che,ues issued rom this

account rom 1 st %arch itsel resulting in the account e=hibiting a minus

balance till 3 rd %arch " hen the amount o +s. > "2 " :- as actually

credited. #ue to the over-dra al" the ban! debited the account by +s. 29 .52 ascharges or over-dra al but the debit as subse,uently cancelled. An amount o

+s. 1.51 (+s. 1>.9 and +s. . 1 in %arch and November

respectively) as also charged to this account as ban! charges. 0t as also

noticed that in t o cases" che,ues ere encashed or +s 1" :- and +s "6 :-

although all the bene iciaries ere sanctioned at the uni orm rate o +s " :-


23/70

vide the order dated 12. 3. mentioned above. Till date" 2 3 bene iciaries

had been paid and or the remaining >6 bene iciaries" the balance in the account

should have been +s 1">2" :-. o ever" due to the above mentioned acts" the

balance in the account as on date as +s. 1">2" 65.1>. Thus" there as lac! o

monitoring o the e=-gratia payments in addition to the act that the opening o

the account itsel as ithout the proper sanction o the %inistry: $ontroller

4eneral o Accounts merely to avoid lapse o unds.

b) An amount o +s 2"2 "6> :- as received on 1 . 3. by the #eputy

$ommissioner (Andaman) rom the *ieutenant 4overnor7s +elie 8und vide

che,ue no. > 6 22 dated 1 . 3. dra n on /yndicate ?an!" Port ?lair or

disbursement o e=-gratia relie to small business enterprises in non- residential

premises. The che,ue as sent to /yndicate ?an!" Port ?lair on 11. 3. ith

a re,uest to issue a #emand #ra t or +s 11" "6> :- in respect o payments

relating to %iddle C North Andaman and to open a current account in avour o

Assistant $ommissioner (/ettlement)" Port ?lair or the balance amount o +s

23"2 " :-. A current account no. >> 3 6 1> as opened on 1 . 3.

ithout any approval rom the %inistry: $ontroller 4eneral o Accounts and e=-

gratia payments ere disbursed rom 12. 3. on ards by issue o che,ues

rom the said account. @n 6. 2. " a urther amount o +s "2 " :- received

rom the *ieutenant 4overnor7s +elie 8und or e=-gratia payments as again

credited to the above current account. /ubse,uently" t o departmental advances"

aggregating to +s 52"92"122:- ere dra n in Fune rom % 2 andcredited to the current account.

Thus" an amount o +s 1"3 "22"122:- as credited to the current account

bet een the period %arch and Fune or various e=-gratia payments

and the account as operated in violation o the codal provisions.

(vii) +s 39.1 crore as spent by the % A in 2- rom the allotment under % - 2

o AN0. @ut o this" +s >.2 crore related to purchase o tents and $40 sheets but

details o purchases made out o the remaining +s. 9.6 as not on record. 0n

addition" an amount o +s >. crore as trans erred by the #irectorate o Accounts

and ?udget" AN0 to % A in - 9. The vouchers or o the entire amount o +s

2 .6 crore ere not available ith the Administration.

(viii) /imilarly" details o purchase o relie materials amounting +s 15" 6" 2>:- made by

the #eputy +esident $ommissioner" $hennai" #eputy #irector o /hipping /ervices"


24/70

$hennai and #eputy +esident $ommissioner" .9 la!h o the unds allotted to them under % - 2

remained unutilised.

(=) 8unds under % - 2 meant or relie and rehabilitation or!s ere utilised or

other purposes as pointed out in Para 3. . (d) (v) above. 0n other such cases hich

came to notice" it as seen that the #irectorate o $ivil /upplies" @ ice o the

#eputy $ommissioner" Nicobar" @ ice o the #eputy $ommissioner" Andaman"

@ ice o the Assistant $ommissioner" $ampbell ?ay and the #irectorate o

Bducation had diverted unds amounting to +s. 2 . 6 la!h (/tationery charges- +s

6.1 la!h" %obile charges" Blectric bills" TA" etc- +s. . > la!h" %obile:D**

phones- +s. . 3 la!h" Payment o electricity charges- +s. 3. 3 la!h and Purchase o

ire ighting e,uipments-+s. .36 la!h) rom % - 2 or regular purchases" hich

as irregular.

&n $iew of the abo$e" Audit recommends that the following measures be

adopted for managing the funds in accordance with the prescribed financial rules

a7 The actual re%uirement of fund for relief" rehabilitation and reconstruction may be re!assessed by ta#ing into account the sur$ey reports" studies by technically trained people'

agencies and realistic inputs in order to pro1ect the actual re%uirement on a realistic basis.

b7 A Central Accounting 2ystem should be put in place with a mechanism of effecti$e internal

control to monitor the utilisation of the funds so that funds recei$ed from all the sources are

properly accounted for and allotment of funds to $arious departments are also need!based.

Ade%uate steps should be also ta#en for a better fund management

c7 Effecti$e measures should be underta#en for proper utilisation of the funds recei$ed from

$arious sources in order to step up the pace of relief" rehabilitation and reconstruction wor# as well as to ensure that e !gratia payments are recei$ed by the beneficiaries at the earliest.

d7 &t should be ensured that the funds" which ha$e been allocated for relief" rehabilitation and

reconstruction acti$ities" are not surrendered but are fruitfully utilised in order to fulfill the

purpose of allotment of such funds.


25/70

e7 Action may be ta#en up for release of the balance of the consented amount of Rs 34.54 crore

from MP+AD2. Action also needs to be ta#en to e pedite the estimates of the remaining three

wor#s and to obtain the appro$al of the 8o$ernment of &ndia for all the pro1ects in order to

utilise the funds recei$ed under MP+AD scheme at the earliest for the pro1ects for which such

fund was released.

f7 All departmental ad$ances should be ad1usted immediately and it should be ensured that

funds released under M*!995: are not di$erted for other purposes. 2imilarly" funds from

other heads should also not be di$erted for relief purposes without the appro$al of the

competent authority for such di$ersion. All the di$ersions made till date should be

regularised by e !post facto appro$al of the competent authority. /urther" additional

re%uirements under any Ma1or *ead should be pro1ected and necessary re!allocations made

by the appro$al of the competent authority.

g7 Drawal of departmental ad$ances for deposit wor#s should be stopped forthwith and

procedure prescribed under Paras ;.: and ;.99 of Ci$il Accounts Manual should be strictly

followed for transfer of funds in connection with deposit wor#s gi$en to APudget should particularly ensure that proper procedure is

followed in issuance of che%ues against bills passed and to effecti$ely monitor the ad1ustment

of departmental ad$ances drawn. 17 &ncorrect payments made from PM?s Relief /und should be reco$ered at the earliest.

#7 Money recei$ed from relief funds should not be utilised for purposes other than those for

which they are pro$ided.

l7 Details' 0ouchers in respect of e penditure incurred by the Ministry of *ome Affairs" Deputy

Resident Commissioner" Chennai" Deputy Director of 2hipping 2er$ices" Chennai and Deputy

Resident Commissioner" @ol#ata out of the funds under M*!995: may be obtained and

properly accounted for.

% Disaster response mechanism and post5disaster acti'ities

3.3.1 Dhile rescue activities commenced almost immediately a ter the earth,ua!e and Tsunami but the

0ntegrated +elie $ommand (0+$) under the $hairmanship o the on7ble *ieutenant 4overnor

or monitoring relie or!s as constituted only on 31.1 . 2 and became ully unctional rom


26/70

1. 1. i.e. a ter a lapse o 9 days rom the disaster. +escue and +elie operations ere

underta!en by the 0+$ under @peration &%addad . 6 +elie $amps ere set up and 29"

people ere given shelter in them. 0n addition" "6 people ere evacuated to mainland. 13 1

sorties o 0ndian Air 8orce aircra t ere made bet een 9.1 . 2 to 11. . or rescue and

relie operations. The % A deployed about para-military personnel in all the islands.

3.3. The /ecretary ($ivil /upplies) as designated as the +elie $ommissioner (/upplies) o the

nion Territory on 6 th #ecember 2 and assigned ith the responsibilities o procurement o

relie materials as ell as to ensure that su icient bu er stoc! o supplies as maintained at all

the islands. The re,uirement o relie materials ere projected by the +elie $amp-in-charge to

the /pecial +elie @ icers (/+@s) stationed at the a ected islands ho ould in turn project

such demand to the /ector @ icers (/@s) stationed at Port ?lair. The /@s ould then place the

indent to the +elie $ommissioner (/upplies) or their procurement.

0nitially" no purchase committee as constituted or procurement o the relie materials

and ,uotations or supply o ten (1 ) items o relie materials ere called or rom only t o co-

operative societies" namely $onsumer $o-operative /ociety ($$/) and Bllen inengo *imited

(B *) and compared ith the rates i=ed or such items by the #irectorate o $ivil /upplies and

$onsumer A airs" AN0 ($/C$A). The rates provided by both $$/ and B * ere the same or

all the ten items and ere also lo er than the rates i=ed by the $/C$A. 0t as decided that B *

being a Tribal $ooperative /ociety ould supply or $ar Nicobar only" hereas $$/ ould be

given supply order or relie materials re,uired or all other a ected islands. T o nodal o icers

ere appointed as 0n-charge or receipt and despatch o materials at jetties and airstrips.Payments or all the relie materials procured ere to be made by the $/C$A. #uring the years

2- and - 9 (till 1 : )" the $/C$A has incurred an e=penditure o +s. >. crore

rom the unds allotted under % - 2 but the total e=penditure on the relie materials procured

could not be ,uanti ied as all the bills submitted or procurement o relie materials are yet to be

paid.

/crutiny o the records o $/C$A revealed the ollo ing shortcomings in procurement

o : payment or the relie materialsH-

(a) Though hundreds o items o relie material ere procured locally but rates had been calledor ten (1 ) items only. /upply orders or all the remaining items (e=cept $olour T;s and

#ish Antennas) ere placed directly on di erent agencies ithout ollo ing any codal

ormalities or their purchase. Although a Purchase $ommittee as constituted in %arch

but the system o placing supply orders ithout observing any codal ormalities is

continuing till date. The 8inance #epartment o the Administration had also observed in Fuly


27/70

that despite a lapse o more than ive months rom the disaster" purchases ere being

made ithout observing codal ormalities although there as su icient time to do so. Test

chec! revealed that in three bills amounting to +s .66 crore" an amount o +s 1.> crore

being 95. 9 per cent o the billed amounts related to purchases made ithout obtaining any

rates.

(b) The Andaman and Nicobar 0sland 0ntegrated #evelopment $orporation *td. (AN00#$@) as

chosen or supply o vegetables or relie purposes ithout observing any codal ormalities.

0n %arch " an amount o +s . la!h as paid to AN00#$@ as advance to ards

supply o vegetables. o ever" it as observed that an amount o +s 1>.>> la!h had been

paid to AN00#$@ against bills raised by them during the period rom %ay to November

or supply o vegetables ithout adjustment o the advance against them.

(c) As a part o rehabilitation measure" the on7ble *ieutenant 4overnor had approved

procurement o bicycles or distribution in $ar Nicobar and Nanco ry islands. The +elie

$ommissioner (/upplies) on one hand purchased bicycles K +s 1"991:- rom %:s T0

$ycles" $hennai in 8ebruary on single tender basis ithout observing any codal

ormalities and 1 per cent advance amounting to +s 33. la!h as paid to the irm. @n

the other hand" the #eputy +esident $ommissioner (#+$)"


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cargo. No such re,uest had been made hile transporting the irst lot o 1 cycles. The cost

o transportation o these cycles ere yet to be made as o date though it as not on record i

the same as transported by the 4overnment o Dest ?engal ree o cost. Bven i the cost o

transportation as to be borne by the ACN Administration" it ould have amounted to +s

" " :- or the > containers K +s. 5" :- per container. 0t may there ore be concluded

that had the irst lot o 1 cycles ere also transported in a $:- actually paid or their transportation. #espite the act that the #+$

had suggested in 8ebruary itsel that transportation o the cycles in $:- (+s "5 " :- O +s. 1 "5 "29>:-) and irregular

e=penditure o +s. 9"9 " :-.

(d) 0n 1 cases" payments ere made to $$/ at rates in e=cess o the rates ,uoted by $$/ andaccepted by the Administration resulting in e=cess payment o +s 2.56 la!h.

3.3.3 +elie :+ehabilitation materials received rom N4@s and % A as ell as those procured by the

Administration reached AN0 rom 6.1 . 2 on ards. Dhile most o these items ere received

in Port ?lair" some ere sent directly to the Nicobar district. The materials received in Port ?lair

via ship as ell as air ere initially !ept in the $entral 4odo n" addo" Port ?lair (4odo n) and

subse,uently handed over to the /@s or distribution through /+@s posted in various islands. 0t

as ound that no records o receipt:distribution o relie materials ere maintained upto. 1. . /crutiny o such records maintained rom 9. 1. on ards revealed the

ollo ing shortcomingsH-

(a) Although the Administration had issued an order in Fanuary to all concerned o icers to

maintain stoc! registers as ell as to ollo the e=tant codal provisions in respect o the relie

materials received by them but it as noticed that there as a ide variation in the ,uantities


29/70

o relie materials sent as per the ships7 mani ests ith those entered in the 4odo n7s

registers. /imilar discrepancies ere also ound in the materials sho n as sent by the

4odo n ith that received by the /+@s.

(b) No records o receipt and despatch o materials ere maintained till . 1. . Bven

therea ter" the records did not provide the details as to hich items ere procured by the

Administration and hich ere donated by N4@s. o ever" the materials procured: received

ere ar in e=cess o re,uirements as is evident rom the balance in stoc! lying at 4odo n

even a ter a lapse o more than one year rom the date(s) o their receipt. No alternate use o

items has yet been decided by the Administration till date. As a result o non-utilisation o

these materials" the same may deteriorate:become unusable ith passage o time e.g. 39 nos.

and 133 cartons o mineral ater had become time e=pired due to non-utilisation.

(c) The materials received in the 4odo n ere accounted or in ?undles" ?ags" $artons" etc and

as a result it as not possible to chec! hether all the ,uantities ordered or supply ere

actually received.

(d) $onsumer durables orth +s. 1" 3" 5 :- ere procured or use in relie camps. 0n addition"

items hich ere received ree o cost" such as solar lanterns" gensets etc ere also supplied

to these camps. o ever" a ter closure o the relie camps" the hereabouts o these items

could not be ascertained in absence o any record there or.

(e) The #irectorate o /ocial Del are (#/D) as given the responsibility o distribution o

edible:household items to relie camps in and around Port ?lair as ell as distribution o

$ycles" *P4 /toves and /e ing %achines to the Tsunami a ected amilies. Dhile the #/D

!ept a stoc! o the edible:household items supplied but no /toc! +egisters or the cycles"stoves and se ing machines ere maintained though maintenance o the /toc! +egisters is

mandatory as per 48+s. As a result it could not be ascertained i all the cycles" stoves and

se ing machines received by them ere actually distributed to the targetted bene iciaries.

8urther" it as also seen that on the closure o the relie camps" a huge ,uantity o the unused

edible:household items ere handed over by the #/D to the o ice o the #eputy

$ommissioner" Andaman but the same as not ta!en into stoc! by them. Thus" it as not

ascertainable i such items had actually been utilised :distributed.

( ) A $entral /tore in the #eputy $ommissioner" Andaman7s o ice as established on3. 1. or storing relie materials be ore their distribution to relie camps in and around

Port ?lair. %aterials received rom various N4@s and 4odo n ere !ept in the store.

/crutiny o the store records also revealed that 2 items o stoc!" received by the store

bet een 9. 1. and 6. 6. and accounted or in bundles" bo=es" cartons etc ere

lying in stoc! as o @ctober . @ut o these" 3> cartons and 5 jars o mineral ater had


30/70


31/70

(b) @ut o the above-mentioned purchases o +s 9 .15 la!h" purchases orth +s 2 .>9 la!h

constituting 9 .52 per cent o the purchases ere made ithout observance o codal

ormalities as prescribed under the 4eneral 8inancial +ules" hich as highly irregular.

(c) @rders or supplies orth +s 2.6 la!h to Tsunami a ected schools ere placed directly

on one supplier in %arch " on the basis o rates accepted by other departments o the

Administration instead o calling or ,uotations: tenders. The supplier" ho ever" supplied

articles orth +s 1.>5 la!h only and gave an underta!ing that the remaining items ould be

supplied by 31st %arch7 " on the basis o hich the #irectorate processed the bills and

the che,ues thereagainst ere also issued by the Pay and Accounts @ ice ithout actual

receipt o the goods. The #irectorate ho ever did not issue the che,ues or the remaining

amount o +s .66 la!h hich have become time-barred and are lying ith the #irectorate

as the articles are yet to be received even a ter a lapse o 1 months rom the date o

placement o supply orders. The processing o bills and issue o che,ues thereagainst ithout

actual receipt o the materials as highly irregular and in contravention o the prescribed

procedures.

?. 0n the post-Tsunami period" the Blectricity #epartment (#epartment) procured #4 /ets

and various Transmission and #istribution (TC#) materials or restoration o po er supply and

other rehabilitation measures in AN0. /crutiny o such purchases made by the #epartment

revealed the ollo ing shortcomingsH-

a) 0n order to procure 2 M


32/70

8irm A or the purchase committee had rejected their bid. As a result" the order orth +s >6. 9

la!h as placed by comparing only t o bids" hich as in violation o the 4eneral 8inancial

+ules. No proposal or re-tendering due to ant o minimum bids as ound on record.

b) The #epartment procured 1> 4ensets at a cost o +s 16 . 2 la!h or

relie and rehabilitation operations. These gensets ere distributed mainly in relie camps and

government departments. @n closure o the camps the gensets ere retained by the village

$aptains and the government departments. 0t as ordered in Fuly by the Administration

that the gensets issued to various captains and to the departments may be ta!en bac! and !ept

in bu er stoc! or uture use. 0n case" the government department intended to retain the

gensets" the cost thereo may be recovered rom them. o ever" till date" neither the gensets

have been ta!en bac! rom the village captains and government departments nor their cost

recovered.

c) 0n connection ith restoration o damaged po er supply in rastructure in the Tsunami

a ected Areas" 2 #4 /ets orth +s 1.13 crore and TC# %aterials orth +s 6.95 crore ere

procured through National Thermal Po er $orporation *td.(NTP$) and Po er 4rid

$orporation o 0ndia *td.(P4$0*) respectively. As the e=penditure sanction or the cost o the

above materials as not ithin the po ers o on7ble *ieutenant 4overnor" a proposal as

sent to the %inistry o Po er in November or according administrative approval and

e=penditure sanction or the above purchases. o ever" e=penditure sanction o +s 5.59

crore as sought or though the materials valued +s 5.51 crore only. 8urther" it as noticed

that be ore see!ing such sanction" an amount o +s .5 crore had already been paid to

P4$0* in @ctober as part payment against the above purchases. 0n addition" an amounto +s .96 crore as also released to NTP$ in Fanuary 9 ithout a aiting the e=penditure

sanction o the %inistry o Po er.

d) As mentioned above" the TC# items ere procured rom P4$0* or

immediate restoration o damaged po er supply in rastructure. o ever" e=amination o

store records o the #epartment revealed that items ere purchased ithout proper

assessment o the actual re,uirement. A e illustrative cases are given belo H-

(i) TC# items orth +s 1.61 la!h ere lying unutilised or

periods ranging rom 5 to > months.(ii) 0t as seen that 2. 2 !m o Aerial ?unched $able I 3 core

s, mm O s, mm as purchased in the post Tsunami period but only 6. 5 !m

as issued till 31. 1. 9 leaving a balance o 9.616 !m orth +s 12.53 la!h lying in

stoc! or a period in e=cess o nine months. The balance stoc! constituted 2>. per

cent o the procurement.


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(iii) 0n Fanuary " the #epartment procured nos. o 93


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3.3.9 The norms prescribed or assistance to ishermen a ected by Tsunami ere issued under % A

circular 8. No. 3 -1: -N#%.0 dated 2. . . The Administration approached the % A in

%arch or modi ications in the assistance pac!ages or ishermen hich as duly approved

by the % A in April . /crutiny o the records o the #irectorate o 8isheries revealed the

ollo ingH-

(i) The #irectorate o 8isheries had identi ied 16 3 cases o ishermen a ected by Tsunami" out o

hich 19 5 ishermen ere made advance payment o subsidy K +s 1 " :- per bene iciary"

though there ere no norms or such advance payment o assistance.

(ii) As per % A circular mentioned above" the time limit or grant o subsidy assistance to ishermen

as 1 days hereas in cases o grant o subsidy as ell as ban! loan" the time limit as 3 days.

o ever" it is seen that till the end o November " out o 16 3 a ected ishermen" only 519

cases o assistance have been settled hich translates into only 26.> per cent achievement

despite a lapse o nearly one year rom the disaster.

(iii) @ut o the pac!age o +s 1. crore allocated or AN0" amounts o +s 1.6 crore and +s 1>.3

crore ere allotted to the #irectorate o 8isheries under the % - 2 during the years 2-

and - 9 respectively or implementation o the various assistance pac!ages or a ected

ishermen. An amount o +s 3.6 crore has been utilised or providing assistance to ishermen till

November " hich constitutes only 16.51 percent o the allocation. #ue to such poor

utilisation o unds" the #irectorate o 8isheries has surrendered an amount o +s 9.9 crore in

#ecember being 31. > percent o the total pac!age.

0t is evident rom the acts above thatH-a) The physical and inancial achievement in implementation o the assistance

pac!age as very poor and the #irectorate as also unable to utilise the unds

allocated.

b) The norms prescribed or assistance to ishermen

ere not strictly adhered to.

3.3.6 0n the post-Tsunami period" 15 local" 2 national and 6 international N4@s had contributed in

various relie and rehabilitation measures such as supplying relie materials" development o social in rastructure" providing counseling and cash assistance etc.

A coordination committee o the N4@s ith #irector (/ocial Del are) as the $hairman

as constituted in 5. 1. ith a vie to acilitate inter ace and synergies bet een the

4overnment and the N4@s so as to e ectively implement the relie and rehabilitation or! as

ell as to avoid the duplication o e orts. Dhile no screening o the N4@s as made" it as


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stipulated that oreign N4@s not registered in 0ndia ould have to obtain clearance rom the

4overnment o 0ndia. /crutiny o records relating to relie : rehabilitation measures underta!en by

the N4@s revealed the ollo ingH -

a) All the N4@s had supplied various relie and rehabilitation materials" hich could not

either be ,uanti ied or their value ascertained" as the same ere not segregated rom the relie

materials purchased by the 4overnment. #ue to lac! o e ective coordination bet een the

4overnment and the N4@s" the Administration procured relie and rehabilitation material ar

in e=cess o re,uirement ithout ta!ing into account the materials being provided by the

N4@s. As a result" huge ,uantity o relie : rehabilitation items ere lying in $entral 4odo n

at addo as on 31.1 . " i.e." even a ter a lapse o one year rom the Tsunami disaster.

b) 0n the Tsunami disaster 26 schools ere ashed out

hile 35 schools ere damaged in AN0. @ut o schools decided by the Administration to

be reconstructed" the N4@s signed %o s or construction o 21 schools. 0n /eptember "

the $hie /ecretary re,uested the N4@s to speed up the pace o construction or! so that

they may be completed by 3 .11. . o ever" it is seen that only 1 schools have been

completed by one N4@" hich constitutes >. 6 per cent o the targetted number"

construction o 9 schools ere in progress and 3 schools ere yet to be started. The

remaining 11 schools" hich ere to be unded rom +ajiv 4andhi National +elie C Del are

Trust" %P*A# and Punjab $hie %inister7s +elie 8und" ere also yet to be started.

3.3.5 An 0nventory Audit team as constituted by the Administration in %ay to conduct the

0nventory Audit o +elie C +ehabilitation materials received and issued in the a!e o Post-Tsunami @peration. The 0nventory Audit team chec!ed the records relating to the materials

received upto 31. 6. and concluded that reconciliation o records as re,uired.

3.3.> 0n #ecember " a Public 0nterest *itigation as iled be ore the on7ble igh $ourt" $alcutta

$ircuit ?ench at Port ?lair regarding de iciencies on the part o the Administration to provide

ade,uate e=-gratia : compensation and the post-Tsunami rehabilitation measures. The $ircuit

?ench issued an interim order on th #ecember directing the 4overnment o 0ndia and the

Administration to continue supply o ree rations to the Tsunami disaster victims as it as doingtill 31.1 . .

Audit" therefore" recommends that !

a7 Codal formalities should in$ariably be followed in all cases of future procurement and stoc#

registers'records in respect of materials should also be maintained. Records in respect of


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materials already recei$ed should be reconstructed after reconciling the %uantities recorded

in the ships? manifests" 8odown?s stoc# registers" 2ROs stoc# records and 2ector Officers?

records. Materials procured by the Administration and those donated by the 8Os should

also be segregated and accounted for separately.

b7 Either future claims of A &&DCO should be ad1usted against the ad$ance payment of Rs

:4.44 la#h already paid to them or the same may be reco$ered at the earliest

c7 As the supplier of the bicycles" M's Ambi#a E ports P$t. +td." +udhiana" had committed to

assemble the bicycles at Port >lair at their own cost" the irregular payment of Rs B.B4 la#h

may be reco$ered from the supplier.

d7 O$erpayments made to CC2 +td. should be reco$ered without further delay.

e7 Relief funds should not be used for the procurement of items such as mobile phones. E !post

facto appro$al of the Ministry may be obtained for regularisation of the abo$e procurement.

/urther" mobile phones pro$ided to ineligible officials should be ta#en bac# and payment of

call charges stopped immediately .The irregular payments of call charges made in respect of

ineligible officials may also be reco$ered from such officials.

f7 &n future" procurement of stores may be made after realistic assessment of the re%uirement so

as to a$oid idle in$estment of unutilised stores.

g7 Materials lying in bags" bundles" cartons etc should be opened and articles" which ha$e

already become time!barred" may be disposed off. Any perishable article should be

distributed to the people li$ing in intermediate shelters at the earliest before they become

unusable" particularly in the light of the directions issued by the Circuit >ench of @ol#ata

*igh Court for continuance of free ration supply beyond 3.34.944:. An Action Plan mayalso be e$ol$ed for fruitful utilisation of all other materials recei$ed for relief'rehabilitation.

h7 Materials such as Tele$isions" >eds etc" which were distributed to the relief camps may be

located and ta#en bac# to stoc# and stored properly for future use. 2toc# Registers showing

the receipt and issue of bicycles" +P8 sto$es and sewing machines may be reconstructed on

the basis of a$ailable records. 2imilarly" utilisation of the items transferred from D2< to the

O'o the Deputy Commissioner 6Andaman7 may also be ascertained and #ept on record.

i7 The gensets distributed to $arious islands may be ta#en bac# from the $illage captains'

departments or their cost reco$ered from them. 17 The entire %uantity of bamboos procured may be fruitfully utilised at the earliest and in

future assessment of re%uirement may be made on realistic basis to a$oid unfruitful' wasteful

e penditure and' or procurement in e cess of actual re%uirement.


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#7 All the tent parts of the : tents" which are yet to be assembled needs to be located and

stored properly for future use. Tents already distributed and which are now not re%uired for

relief purpose should also be ta#en bac# to stoc#.

l7 Against purchases of Rs ;.;3 crore from P8C&+ and TPC" e penditure sanction of the

Ministry of Power has been sought for Rs ;.;B crore which needs to be reconciled. /urther

payments to P8C&+ and TPC in respect of the abo$e purchases may be released only after

receipt of administrati$e appro$al and e penditure sanction of the Ministry of Power and

after deduction of the amounts already released.

m7 2ince the awarding of construction wor# to A &&DCO in$ol$es payment of additional liability

in the form of ser$ice charges' profit margin" the wor#s should be awarded to the

construction agencies of the 8o$ernment e.g. AP


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i. The major #ivisions o the APD# engaged in the post-Tsunami activities are located in the

/outhern 4roup o 0slands and /outh Andaman. The ollo ing activities o the APD # ere

scrutinised in audit.

a) Procurement and installation o bailey bridges or immediate repair and renovation o road

and bridges.

b) 0nstallation o +everse @smosis (#esalination) Plants and /%$ Tan! under Dater /upply

/cheme as a %edium Term %easure or restoration o ater supply in di erent islands.

c) $onstruction o intermediate shelters or Tsunami a ected persons.

d) $onstruction o oundation o pre abricated structures along ith procurement o

mechanical parts through #4/C# or restoration o government non-

residential:residential buildings.

e) Procurement: receipt o major plant" machineries" e,uipment7s and other stores either

through direct purchase by APD# or on hire charge basis through % A and their issue to

the respective units or ultimate utilisation in Tsunami relie or!s.

) iring o large e,uipments" machineries rom private parties.

g) Transportation charges or relie :constructional materials" e,uipments" machineries and

plants rom mainland to AN0 as ell as transportation ithin the di erent islands.

ii. The provision o unds vis-J-vis the e=penditure incurred by APD# during

2- and - 9 (upto #ecember ) are as underQ

9ear> 200 507 3Rupees in la8h/%ajor ead #escription 8und received B=penditure incurred

2 I +elie onAccount o Natural$alamities

8lood and $yclone

11 >.(consolidated)

Nil#rin!ing ater supply 2.5+epairs:restoration o damagedroads:buildings

3.93

+epair:restoration o damaged 4overnmento ice building

152.2

+epairs:restoration todamaged 4ovenmentresidential building

19 .23

8or intermediateshelter

32>.12

T)TA1 $$7 % 2

9ear> 2007506 3Rupees in la8h/+a*or #ead Description -und recei'ed ?@penditure

incurred8lood and $yclone 62 . . >#rin!ing ater supply . 99.32


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2 I +elie onAccount o Natural$alamities

+ears:restoration o damagedroads:buildings

3 . 5 6.9

+epair:restoration o damaged 4overnmento ice building

13>>. 922.22

+epairs:restoration todamaged 4overnmentresidential building

16 2. 6.9

8or intermediateshelter

2>39. 32 .16

T)TA1 $ 2;;%00


40/70

$#-000" APD#" Prothrapur 35 1 9 1 .6>P?N#" APD#" Port ?lair 1 5 2 1 > 29. >P?/#" APD#" Port ?lair 15> 1 Nil 195 55.5>/A#" APD#" Port ?lair 11 1 1 Nil .P B#" APD#" Prothrapur 6 1 2 6.12$#" APD#" $ar Nicobar 3> > > 1 . 9$#" APD#" +angat 6> 22 9 > 39.61

NA$#" APD#"%ayabunder

23 1> 2 >.3

$#" APD#" #iglipur 1 15 1 .%0#" APD#" ut ?ay 6 19 3 9 39.11$#" APD#"


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did not urnish any in ormation on civil or!s" the #ivision at $ampbell ?ay did not urnish

any o the in ormation though called or. Thus due to absence o proper monitoring" delay in

ta!ing up o the or!s and delay in inalisation o tendering procedure led to delay in the

e=ecution o the or!s.

iv. #ue to devastating Tsunami damages" several lives ere lost and houses

damaged severely particularly in southern group o islands and in /outh Andaman. As a result"

several thousands o people ere marooned in these islands" ho ere initially shi ted in the

relie camps. Administration" subse,uently decided to construct Temporary /helters or their

immediate accommodation. 8urther" it as decided to construct 0ntermediate /helters instead

o the Temporary /helters. The li e o these 0ntermediate /helters ere bet een 1 and 2

months. The a ected amilies ere ultimately to be shi ted to the Permanent /helters to be

provided by the Administration. The proposed date o commencement o the construction o

Permanent /helters as @ctober and they ere scheduled to be completed ithin 12

months. Accordingly" in April " the Administration completed construction o >" 9

0ntermediate /helters in di erent islands or giving shelters to tribal as ell as non-tribal

amilies" as detailed belo H

Name of islands "ntermediatesheltersconstructed

T!pe of families

$ar Nicobar 3"599 TribalTeressa" $ho ra C ?amboo!a 5 1 Tribal2 Non-TribalT)TA1 ;,767

Although" it as subse,uently decided by the Administration to provide incidental

acilities li!e providing cement concrete looring" approach roads etc." but these have not

yet been completed. %oreover the incidental civil or!s relating to looring etc. ere to be

got e=ecuted through labourers rom the tribal amilies. o ever" it could not be veri iedrom records as to hether the said or!s ere actually e=ecuted by the tribals. 8urther"

construction o Permanent /helters or shi ting the amilies rom the 0ntermediate /helters"

have not commenced till Fanuary 9. The issue o construction o the Permanent /helters

is to be decided by the Administration in consultation ith the %inistry o rban


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#evelopment. Thus" delay on the issue o construction o Permanent /helters has made

uncertain the shi ting o a ected population presently housed in 0ntermediate /helters.

v. As per the decision ta!en by the Administration in Fanuary " 1

desalination plants (reverse osmosis) o 1 litre per hour capacity or desalinisation o

sea ater" along ith compatible #4 /ets as a compact unit ere to be installed ithin a

distance o metres rom sea shore. The plants ere to be installed or the bene it o the

Tsunami a ected amilies in the southern group o islands. %oreover" as per the action

plan or restoration o ater supply" all the plants ere to be installed ithin > days.

Accordingly" 1 desalination plants along ith the 2 per cent payment as

released by $entral 4round Dater ?oard ($4D?) on behal o APD# and balance 1 per

cent as to be released by Fune or a ter success ul installation and commissioning o

the plants" hichever as earlier. /ince base or! or all the plants could not be completed

by APD#" none o the plants could be installed ithin the stipulated period. The $4D?

stated in Fune that as APD# could not satis y the ormalities to be observed ithin the

stipulated date" the balance payment ould be released by the $4D? at the ris! and cost o

APD#" or hich $4D? ould not ta!e responsibility or any uture complication. No

urther development regarding installation o the plant as on record and all the desalination

plants ith the #4 /ets had been remaining unused at store at the respective location"

subjected to ravages o climatic variation in Andaman and Nicobar group o islands. Thus"

even a ter a lapse o one year" the bene it o e=tending the acility by APD# could not be

provided to the Tsunami a ected amilies" particularly at the remote locations o southern

group o islands. Thus" due to post haste decision to procure the desalination plants"

generating sets and /%$ panel tan!s" be ore inalising the respective location and initial


43/70

base or!s relating to installation o the plants" APD# could not e=tend the projected

bene it to the Tsunami a ected people till Fanuary 9" apart rom running the ris! o

complications or installation o the plants beyond Fune " as per the terms o the contract

or procurement.

vi. As per the re,uirements received rom di erent departments in AN0" APD# has

ta!en up on priority the or! o construction o pre- abricated structures or Agriculture

#epartment" %edical #epartment" Blectricity #epartment" Police #epartment and Bducation

#epartment against the unds to be placed ith individual departments under % - 2 " as

detailed belo H

Name of the department Number of pre5fabricated structure

Total

Blectricity department 131

2 9Police department 35Agriculture department 26Bducation department 1%edical department 6

Therea ter" the Police #epartment placed additional re,uirement or 2 structures.

Thus the total number o pre- abricated structures to be constructed by APD# as 229.

/tores #ivision" APD#" ho ever" projected the re,uirement o 251 such structures.

+eason or variation in number o structures re,uired vis-J-vis the projected ,uantity as

not on record. As o Fanuary 9" the /tores #ivision could supply only 192 structures

and the remaining materials ere stated to be arriving. The details regarding provision o

unds placed ith the di erent departments together ith up to date e=penditure incurred

thereon are not available ith APD#. Though $B" APD# desired completion o

oundation by November and erection o pre- abricated structures by #ecember

" the base oundation or!s in none o the islands could be completed till Fanuary

9" resulting in un-necessary dumping o stores at di erent islands.

Test chec! o records o %inor 0rrigation #ivision (%0#)" APD# at ut ?ay

revealed that as per the in ormation urnished by the B=ecutive Bngineer" /tores #ivision"

APD# at Port ?lair a total o 3> complete set o pre- abricated

structures have been supplied to the B=ecutive Bngineer" %0#" ut ?ay on 5 th #ecember

. o ever" the #ivision at ut ?ay received only > complete set o pre- abricated

structures. The B=ecutive Bngineer" %0#" ut ?ay could not ascertain reason or short

receipt o 1 complete set o pre- abricated structures. 0n absence o any physical


44/70

veri ication o the Tsunami relie materials by the /tores #ivision" the actual balance at

store could not also be reconciled. Thus" cost o 1 Pre- abricated structures valued at +s.

.3 la!h may become loss to government.

Apart rom > complete set o pre- abricated structures" the %0# at ut ?ay has also

received 29 part structure (9 per cent o structures" per cent o 1 structures and

per cent o 11 structures) as o 31 st Fanuary 9. +eason or supply o part structures o 29

Pre- abricated structures together ith its value as not on record nor stated by the %0#"

ut ?ay. The reply urnished by the /tores #ivision did not re lect even any part supply o

the structures. @nly > pre- abricated structures have been installed by %0# as o 31 st

Fanuary 9 and none o the balance pre- abricated structures could be installed. All the

29 partly supplied structures" together ith complete structures have been lying unused

at stores at ut ?ay. Thus" the purpose or hich the pre- abricated structures have been

procured by the Administration could also not be achieved.

vii. @ne bulldoEer orth +s 2.96 la!h as received by the %0# ut ?ay on 3 th %arch

or utilisation in relie activities. Test chec! o records revealed that only in April

the bulldoEer as utilised or 6 days and rom %ay to August " it or!ed

bet een and 1 days respectively per month. /ince /eptember " the bulldoEer

remained unused at ut ?ay" as there as no re,uisition or it. No attempt as also made by

the B=ecutive Bngineer" %0# to trans er the bulldoEer to any other units o APD# or its

gain ul utilisation. Thus" the bulldoEer costing +s 2.96 la!h remained idle or months and

as sparsely used in the previous months.

8urther" or Tsunami relie and rehabilitation or!s" the Administration has hired

earth moving machines" bulldoEers" tractors etc either directly or through the % A or

utilisation in the e=ecution o or!s. /crutiny o records o the $onstruction #ivision at

$ar Nicobar revealed that those machines could not be utilised upto optimum level and the

machines remained idle ithout any or!. The reason or the machines being idle as also

not recorded in a number o cases. As a result the Administration had to pay e=orbitant hire

charges amounting to +s. .93 la!h or the period hen the machines remained idle

bet een %arch and Fanuary 9" e=cluding the orce majure periods.

viii. 8or replacement:repair o damaged bridges" the /tores #ivision procured 12 bailey

type bridges at a cost o +s 222.26 la!h and issued to ive di erent #ivisions or installation.

Accordingly" /tores #ivision APD# issued 12 bailey type bridges" bet een 1> th 8ebruary

and 3 rd %arch " to ive #ivisions as detailed belo H


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Di'ision &pan Number

%0#" ut ?ay 2 7 //1 7 #/+

9

$#" $ar Nicobar 1 7 ##+

$#" $ampbell ?ay 2 7 // 1

$#" #iglipur 1 7 #/+ 1 7 ##+

11

$# 000" Prothrapur 2 7 // 1

.

The scrutiny o records at %0#" ut ?ay revealed that although the #ivision

completed oundation or! o t o 1 7 #/+ bridges at a cost o +s . 3 la!h" the

#ivision did not receive any 1 7 #/+ bridge but received only si= 2 7 // bailey type

bridges. Till Fanuary 9" the #ivision could install only 1. number o 2 7 span bridges

and the balance 2. number o 2 7 span bridges had been remaining unused at store or

reasons not stated. The oundation or! valued at +s. " 3" >9 could not also be o any

bene it to the a ected population. Dhile $# 00 installed the bridge at site" $#" #iglipur

could complete installation o only one 1 7 span bridge but $#" $ar Nicobar could not

install any o the bridges or reasons not stated. $#" $ampbell ?ay did not urnish any

in ormation.

0t ould" thus" emerge that a majority o the bridges have not yet been installed

de eating the purpose or hich the bridges ere to be erected and installed even a ter a

lapse o one year rom the date o their procurement.

i=. There e=ists no system o internal control mechanism either bet een the /tore

#ivision and other e=ecuting #ivisions o APD# scattered in di erent islands or bet een

APD# and Administration. No physical veri ication o Tsunami relie " rehabilitation and

reconstruction materials procured by the /tores #ivision has been conducted or more than

13 months" since the date o procurement and start o Tsunami relie or!s in Fanuary .

As a result" reconciliation o bul! o the materials supplied by the /tores #ivision to other

e=ecuting

Draft Report on Performance Audit.doc

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