Corruption Culture in Culture Ministry: Multi-Crore Scam Comes To Light, PMO Fails To Act

Prime Minister Narendra Modi keeps reiterating that it is his vision to make India free from corruption. He even came up with a viral slogan ‘Na Khaunga, Na Khaane Dunga’ (neither will I take a bribe, nor allow anyone to do so). However, it seems that his anti-corruption stance is nothing but a farce.

'Serious financial and administrative irregularities' have come to light at the Centre for Cultural Resources and Training (CCRT), which comes under the Ministry of Culture.

Interestingly, the Prime Minister’s Office (PMO) is allegedly doing nothing despite being aware of the fraud. There are allegations that the ministry is hard trying to cover up the matter.

A Special Audit Report on CCRT received by a Delhi-based activist through Right to Information (RTI) from the internal audit wing of the Ministry of Human Resource Development (MHRD) reveals that CCRT Director GC Joshi is involved in a multi-crore scam.

All administrative, financial powers and management of the CCRT are vested with the Executive Committee and the Finance Committee. As per Memorandum of Association (MoA), the Executive Committee can delegate powers (financial and administrative). The incumbent director was never delegated any financial and administrative power by the Executive Committee of the CCRT.

The Ministry of Culture had delegated the power to the present director in 2012 after he informed the ministry that 20 applications were received for the director general post and in the intervening period.

“This action of the Ministry of Culture is wrong as it does not have any authority to give any power to GC Joshi. He should have informed immediately to the ministry about MoA and non-appointment of DG, CCRT,” the report noted.

Loss of revenue

As per the audit report, the CCRT incurred a loss of Rs 1.56 crore during 2011-12 to 2015-16 for the recommendation of using its auditorium. All these recommendations were done by Joshi. This loss has been calculated from the revenue earned during 2010-11 from the auditorium.

“Sh. Joshi’s non-action in getting approval/license for auditorium led to a loss of Rs 1.56 crore from 2011-12 to 2015-16 if earnings from the auditorium in 2010-11 are taken as base revenue,” said the audit report.

Diversion of fund and manpower

During the last five years (from 2011-2015-16), the CCRT was given the fund of Rs 100.97 crores (Rs 81.11 crores under Plan and Rs 19.86 crore under non-Plan). Plan fund was used to pay salary and wages to contractual staff (Rs 1.8 crore/year), security services (Rs 18 lakh/year), rent etc. As per DFPR, all these expenses fall under non-plan expenditure.

“It reveals that the director functions in an arbitrary manner and has complete disregard to financial rules and regulations. This further opens up questions about submission of deceptive utilisation certificates in these years, for subsequent release of fund by the ministry,” said the report.

Further, the director diverted manpower to the Ministry of Culture; whereas, payment of wages to the tune of Rs 49.63 lakh was paid by the CCRT for the hiring of manpower.

“It establishes the fact that Joshi acted in a discretionary manner, and to shadow his misdeeds, he obliged the ministry in this manner,” said the audit report.

It has recommended that the amount of Rs 49.63 lakh may be recovered from the director.

Appointment of contractual staff

The director also used his administrative power “fraudulently” to hire contractual staff. Covering period 2012-14 to 2015-16, Rs 2.73 crores was paid to the contractual staffs. The audit observed that these staffs were appointed “without following the laid down procedure and rules and without any advertisement". The staff were appointed on nomination basis.

Secondly, against the vacant position of 34, the director hired 72 contractual staff. “No bidding process was followed in this hiring, nor was any approval of the Executive Committee/Finance Committee/Ministry taken for the same,” said the audit report.

Providing vehicles to the Ministry of Culture

Violating all rules and norms, Deputy Secretary Sarvesh Kumar Arya was provided with a car at the rate of Rs 28,585 per month. And Arya also drew transport allowance during this period.

“It proves his (GC Joshi’s) complete disregard to the exchequer and is against the standards of financial propriety,” says the report.

Irregular financial benefit under MACP/ACP

The audit report goes on to observe that Joshi and Bhatnagar “wrongly drew huge additional financial benefits by financially upgrading the scale without following the DoPT’s rules and norms of the ACP/MACP”.

“This is clear case of manipulation of rules for his personal benefit. It raises questions on his integrity and further proves that officer is of doubtful integrity,” said the report.

Procurement of works

The audit team observed the irregularities relating to non-following of the correct tendering process, non-entering into a contract with the contractor, arbitrarily extending the works and cost. “This shows Joshi acted against the General System of Financial Management in an arbitrary manner with complete disregard to government rules and regulation, which led to huge financial loss to the government,” said the report adding that “Joshi misled the organisation and the ministry with the excuse of not being aware of the rules and regulation, which is not tenable”.

The report also categorically states that all the directives of Director for reinstatement of staff, purchasing and sacking of employees should be considered null and void.

It recommended the government that Joshi either be placed on immediate suspension or sent on leave till the detailed inquiry is conducted in the affairs of the CCRT.

No action so far

Despite such serious notings and several written complaints against him sent to the PMO, Director Joshi continues to remain in office.

Meanwhile, several letters have been sent to Prime Minister Narendra Modi to take note of the corruption in the CCRT. The Prime Minister’s Office is stated to have forwarded the letters to the secretary of the Ministry of Culture but authorities are allegedly sitting idle.

In one of the complaints, it has been alleged that several big shots are trying to cover up the matter that involves financial embezzlement.

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