A shocking case of financial irregularities has surfaced in Odisha, where engineers of Integrated Tribal Development Agencies (ITDAs) allegedly misused nearly ₹148.75 crore of government funds meant for welfare projects in scheduled tribal areas. The Comptroller and Auditor General of India (CAG) flagged the embezzlement in its latest report presented to the Odisha State Assembly.
According to the findings, junior engineers (JEs) and assistant engineers (AEs) of 11 ITDAs carried out personal transactions over a five-year period (2018–19 to 2022–23), diverting funds intended for tribal development projects.
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Misuse of Public Funds by Engineers
The CAG report revealed that government funds allocated for critical development projects were diverted for personal use. Engineers allegedly used the money for:
- Insurance premium payments
- Mobile phone recharges
- ATM withdrawals and UPI transfers
- Point-of-sale (POS) and cheque payments
These expenses had nothing to do with welfare projects and pointed to suspected misappropriation of public money.
Funds Released and Irregular Spending
During the test-check period, the Odisha government had released ₹1,709.47 crore to 11 ITDAs for welfare initiatives targeting Scheduled Tribes (STs). Out of this, ₹1,190.44 crore (around 70%) was spent.
However, the CAG found significant irregularities in departmental expenditures. Instead of following the rules set out under the Odisha Public Works Department (OPWD) Code, which mandates spending through personal ledger accounts of ITDAs, payments were routed through separate bank accounts opened in the names of JEs and AEs.
This violation of government norms indicated a serious lapse in internal financial controls.
Fake Billing and Unverified Costs
The audit further revealed that engineers were paid for project execution based on running account bills they themselves prepared, regardless of the actual work completed. The money was then deposited into their personal accounts, from where they conducted personal transactions.
The CAG also noted:
- Many project invoices were either missing or contained serious irregularities, such as incorrect dates, absence of GST registration, and mismatched numbers.
- Cost estimates for 544 projects were prepared without proper site visits, drawings, designs, or maps.
- In the absence of proper project documentation, it was impossible to verify if the funds were actually used for the intended works.
This raised concerns about ghost projects and inflated bills, pointing to systemic corruption within the ITDAs.
Procurement Irregularities Worth Crores
The audit also exposed irregularities in the procurement of input materials for ITDA projects. Despite a government order in June 2023 requiring co-operative societies to participate in open tenders, the ITDAs continued to procure goods directly from co-operative societies.
For instance, 10 ITDAs procured input materials worth ₹54.25 crore from Odisha Consumer Co-operative Federation Ltd and Regional Co-operative Marketing Society without following the mandatory tender process.
The violation of procurement rules not only undermined transparency but also raised suspicions of collusion between officials and suppliers.
A Deep Failure of Accountability
The CAG observed that the entire process showed a failure of oversight and accountability within the ITDAs. By allowing engineers to directly handle large sums of money through personal accounts, the agencies created conditions ripe for embezzlement.
Key issues flagged include:
- Absence of checks on financial transactions
- Lack of monitoring of project documentation
- Non-compliance with procurement rules
- Misuse of funds earmarked for vulnerable tribal communities
The report described the transactions as indicative of deliberate misappropriation of public money by the engineers concerned.
Impact on Tribal Development Projects
The misuse of nearly ₹149 crore has dealt a blow to welfare schemes meant for Scheduled Tribes in Odisha. The funds were supposed to finance infrastructure projects, social development schemes, and welfare measures in remote tribal regions.
Instead, much of the money was siphoned off for personal use, leaving communities deprived of the benefits they were promised. Experts say such large-scale financial irregularities not only weaken public trust but also deepen inequalities in already disadvantaged regions.
READ ALSO- Indian Families Likely to Save 27–30% on Taxes Under GST 2.0, Says ReportThe CAG report on Odisha ITDAs has brought to light a disturbing picture of corruption and financial mismanagement. Engineers entrusted with the responsibility of executing tribal development projects allegedly diverted ₹148.75 crore for personal expenses, bypassing financial rules and exploiting loopholes in the system.
With irregular procurement practices, missing invoices, and unverifiable project estimates, the scandal underscores the urgent need for stricter financial oversight, stronger accountability mechanisms, and transparent procurement processes.
As the State Assembly debates the findings, all eyes are on whether the Odisha government will take strong action against those responsible and put in place reforms to prevent such large-scale misuse of funds in the future.
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