PAC, AP Government on collision course over spending of huge amounts

Visakhapatnam A new controversy has erupted in Andhra Pradesh with the State Government and the Public Accounts Committee (PAC) casting aspersions on each other over spending of huge amounts for various schemes in violation of norms.

While the PAC headed by TDP MLA Payyavula Keshav created a political storm by meeting Governor Bishwa Bhusan Harichandan in Vijayawada recently alleging drawing of large sums amounting to Rs.41,000 crore in gross violation of AP Treasury Code during FY 2019-20 and 2020-21, ruling YSRCP rubbished the claim. The TDP leader demanded an order by the Governor for auditing of 'unaccounted payments.'

Reacting to the charge, the AP Government said there was nothing amiss with the payment position. It said transparency is the hallmark of the YSR Congress Party Government, party spokesman and Anakapalle MLA Gudivada Amarnath said in Visakhapatnam.

Denying PAC Chairman's memorandum submitted to the Governor, the government denied reports in the media on payments to the extent of Rs.41,000 crore in gross violation of well-regulated accounting rules and procedures and in gross valuation of treasury norms. The government termed as travesty of truth reports on amounts transferred or being withdrawn in gross violation of the AP Treasury Code.

In another development, Principal Secretary, Finance, Shamsher Singh Rawat dismissed the claim made by PAC Chairman Keshav that large sums were withdrawn without accounting for any reason.

In a statement, he admitted that the points were raised during the audit due to 'operation of adjustment transactions.' He explained that the Principal Accountant General (A&E) compiles the accounts of the State every year. During the process of compilation observations will be made & referred to the Finance Department for remarks and dropped after a satisfactory clarification is issued. This is a standard yearly practice.

"Similarly, for the accounts of the year 2020-21 the Principal Accountant General (A&E) vide the letter dated 4-05-2021, has made an observation that 10,806 bills involving an amount of Rs.41,043.08 crore was drawn under Special Bill category without adhering to the codal provision that is without any details of classification, DDO (drawing and disbursing offices) and beneficiary details sanction proceedings across all treasury units. The letter also gives district wise breakup in the Annexure," the statement pointed out.

Rawat said the letter and issues pointed out by the Principal Accountant General (A&E) were examined & it is observed that the issues have arisen due to operation of adjustment transactions, for the following reasons: Funds released to the PD accounts which could not be utilized by the end of the financial year are lapsed as per the Andhra Pradesh Financial Code, the adjustments made among the PD accounts, rectification of accounting unit of expenditure within the same Head of Account and reprocessing of failed payments.

He also pointed out adjustment of TDS recovered from the regular bills to the GSTIN could also be the reason and clarified that all the said transactions are carried-out as per the procedure and as per the provisions of the Andhra Pradesh Treasury & Financial Code. Their viewpoint on the issue is being informed to the Principal Accountant General (A&E) accordingly and the allegations made are not factual, Rawat informed.