Mizoram: CAG pulls up DHME for making ‘avoidable expenses’

The directorate of hospitals and medical education in Mizoram incurred avoidable expenditures totaling Rs 5.30 crore and an avoidable liability of Rs 4.20 crore

The CAG pulled up the directorate of hospitals and medical education (DHME) for making ‘avoidable expenses’ to the tune of Rs 5.30 crore. The CAG also wrapped the DHME for arbitrarily appointing IGEL.

Mizoram Chief Minister Zoramthanga tabled the audit report of the Comptroller and Auditor General of India (CAG), on Thursday where the directorate of hospitals and medical education in Mizoram incurred avoidable expenditures totaling Rs 5.30 crore and an avoidable liability of Rs 4.20 crore.

According to the CAG report, the DHME and Intergen Energy Limited (IGEL), a New Delhi-based company, inked an MoU in May and December 2012 to establish a water treatment facility and generate renewable energy for nine hospitals.

Although Mizoram at the time had 8 districts, the targeted hospitals were the 8 district hospitals and the Referral Hospital at Falkawn close to Aizawl.

In accordance with the requirements of the Memorandum of Understanding, IGEL would survey, design, establish, operate, and maintain at its own expense and guarantee continuous delivery of treated water appropriate for drinking purposes to the hospitals for a period of ten years.

It was also stipulated that the DHME would purchase from IGEL a minimum of 25,000 liters of treated water per day per plant at the rate of Rs. 0.48 for a period of 10 years.

Upon expiry or termination of the MoU, the entire system/equipment would be taken over and fully owned by the DHME.

As per clause 5.4 of the MoU, if the seller (IGEL) failed to complete the project or failed to deliver the services, it is liable to forfeit the balance amount payable to it and the department would be at liberty to offer the project to other competent firms or firms.

Of 9 hospitals to be covered IGEL managed to install the plants in only 5 hospitals during the period between March 2012 and February 2014, the report said.

While not a single drop of water was supplied to the Civil Hospital, Aizawl the total quantity of water supplied to 4 hospitals was 40.55 litres and barely 2.09 litres of water was supplied to the Referral Hospital from January to May 2013.

The CAG report pointed out that the percentage achievement of supply of water to the 5 hospitals was only 1.46 of the minimum volume as per the agreement.

The audit observed that all the hospitals were getting water supply on a priority basis from the state public health engineering (PHE) department and there was no insufficiency in the supply of water to the hospitals before or during the period of MoU with IGEL.

So, the engagement of IGEL was arbitrary and the proposal of the firm was agreed to by the DHME without ascertaining the actual need for water supply in the hospitals, the CAG report said.

The report said that there was a total avoidable expenditure of Rs 5.30 crore in addition to the committed liability to the tune of Rs 4.20 crore against the balance payable on MoU on the buy-back of equipment and water supplied.

The CAG recommended that the state government needs to investigate the matter and take action against the officials responsible for not invoking penalty provisions on time.

Also Read : Mizoram Govt writes to MHA to safeguard rights of ethnic Mizos in different countries

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