CAG flags anomalies in accounts of units under IT, telecom ministries

The CAG flagged anomalies in the decision taken by state-run telecom firm BSNL, C-DoT, the Department of Posts, ITI Limited and CDAC that had adverse financial implications.

The Comptroller and Auditor General of India on Monday reported multiple irregularities in the accounts of units under the IT and telecom ministries, including purchases of hardware and software worth ₹890 crore by NICSI in contravention of rules.

In its audit report for financial years 2017-18 and 2018-19, the Comptroller and Auditor General (CAG) has flagged anomalies in the decision taken by state-run telecom firm BSNL, C-DoT, the Department of Posts, ITI Limited and CDAC that had adverse financial implications. "NICSI procured hardware and software costing Rs 890.34 crore through the 'Strategic Alliance' route in contravention of General Financial Rules, 2005 and departmental instructions and thus failed to ensure transparency and competitiveness in the procurement process," according to the CAG report tabled in Lok Sabha on Monday.

The National Informatics Centre Services Inc (NICSI), which provides IT infrastructure to government departments, prior to September 2015 had been making procurements using SAs (strategic alliances) based on the approval of its board but without obtaining any PACs (Proprietary Article Certificate), it said. "This was in contravention of Rule 154 of GFR, 2005 and MeitY's subsequent instructions of June 2014," the report added. According to the rules cited by the CAG, procurement from a single source can be resorted in cases where only a particular firm is the manufacturer of the required goods, and/ or for standardisation of machinery or spare parts based on advice of a competent technical expert and approval of the competent authority.