Eastern Command diverted funds to combat insurgency

NEW DELHI, March 29 ? Huge funds earmarked for combating militancy were found to have been diverted by the Eastern Army Command authorities to purchase vehicles, television sets, VCR?s, computers and generators, according to the Comptroller and Auditor General, reports PTI. Making a close scrutiny of the allocations for the first time, the CAG said the Eastern Army Command purchased consumer goods worth Rs 6.79 crore over a period of three years from 1998 to 2001 from the Rs ten crore annual fund given to Army Commanders by way of special financial powers. ?These funds are allocated to meet urgent and immediate requirements of counter-insurgency operations and internal security duties?, the CAG observed as it indicated the Army for diverting the funds to purchase consumer goods saying these should have been purchased under normal over heads. Commenting that these funds were meant to acquire cutting edge weaponary for the counter insurgency forces, the CAG said even in such purchases, the command had procured stores worth over Rs 3.12 crores which were found to be sub-standard and defective. The CAG said that entire stock of 32,800 bullet proof ?patka? brought by the Eastern Army Command between 1995 to 1998, two of the four long distance satellite terminals as well as 3,000 of the 3,700 epicoated barrels were found defective. ?Procurement of substandard items has failed to provide proper security cover to troops engaged in counter-insurgency operations,? the report said. CAG said that the failure to instal Signal Channel Radio relay long distance satellites hit counter insurgency operations since there was no effective communication system being established. Similarly, it said other purchases like tractors fitted with trailers, speed boats and portable satellite phones were utilised at Command Headquarters rather than at counter insurgency operations for which they were meant for. The CAG also rapped the Eastern Army Command, headquarters of forces combating insurgencies in Assam, Nagaland, Manipur and Mizoram, for constant surrender of funds saying this pointed towards ?lack of sound financial management?. It also said that financial liabilities were carried forwards for a number of years and other stores worth more than Rs 18.13 crore were purchased between 1996-2001 which were not covered under these special powers. Besides, the report said some of the vehicles purchased from counter insurgency funds were purchased directly from dealers instead of DGS & D contract rates which resulted in excess expenditure to the tune of Rs 11.44 lakh in respect of 30 maruti vans and Rs 19.17 lakh for purchase of 16 gypsies. ?The financial power delegated to Eastern Command for counter-insurgency were not exercised within the parameters of the delegation?, CAG said as it called for strengthening internal controls.