Centre decrees: CBI to probe NREGS frauds

The circular,which is meant for “strict compliance”,says,“In the case of a CBI investigation,the state government should transfer the accused officers out of the area of operation of Mahatma Gandhi NREGA. In case the state government does not comply,the release of funds will be stopped.”

“In case of investigation by a team of central officers,the release of funds will be stopped on the receipt of the report and the state government will be given a reasonable cure period within which they should remedy the system,” says the circular.

The central funding will be restored once the GOI is satisfied that the state government has taken appropriate remedial measures,says the circular.

The circular has been issued under Section 27 of the Mahatma Gandhi NREG Act,which empowers the Government of India to issue directions to the states for implementation of the scheme.

Section 27 also says that in cases of “improper utilisation of funds” granted under the MGNREG Act,the GOI may,on the receipt of a complaint,order an investigation by any agency designated by it and,“if necessary,order stoppage of release of funds” if “prima facie satisfied that there is a case”.

According to the circular,the monitoring and review of MGNREGS and reports from members of the Central Employment Guarantee Council,audit teams and national-level monitors had thrown upanomalies in the implementation of the scheme.

The circular says that complaints received from independent sources would be inquired into by the GOI. Where a prima facie case for further investigation is found,a statement of charges will be framed and sent to the state government “for inquiry and response within a period of two weeks”.

A screening committee at the ministry will examine the report from the state and “in case,it is not found satisfactory,get the charges investigated by the CBI” where criminal intent is prima facie established.

Sources in the ministry said that Uttar Pradesh,Orissa, Jharkhand and some other states,which have a particularly bad record in dealing with complaints of corruption and irregularities in the implementation of MGNREGS,would be the first ones to be affected. These states have failed to take satisfactory action despite repeated reminders from the ministry in glaring cases of frauds.

However,Pradeep Jain ‘Aditya’,the Union Minister of State for Rural Development who looks after MGNREGA,said,“We do not wish to target any particular state. The motive is to stop corruption and if state governments would not stop it,then we will have to take such action.”

“Moreover,we will not stop funds or order an inquiry straightaway; the state governments will be first asked to take action on their own. It is only when they fail that we will take action,” Jain said.

Many officials in the UP government are worried. The state government has suspended some of the officers who were found guilty in inquiries,but it has refused to order recoveries even after several reminders. The amount involved is more than Rs 100 crore. Also,many of the officers are posted in the same districts where the fraud took place.

A senior state government official said they had not yet received the circular. “We are not sure whether they can directly recommend CBI investigation without consent from the states. MGNREGA might be their scheme,but the states are the implementing body.”