Kerala pays commitment charges of Rs 44 crore to ADB

Comptroller and Auditor General of India has noted that Kerala government paid a commitment charges to a tune of Rs 43.68 crore to Asian Development Bank (ADB) for not implementing projects funded by the bank within the specified time.

This was stated in the CAG report on Local Self-government Institutions for the year ended March 2016, tabled in the state assembly on Monday.

Loans were sanctioned by the Bank to a tune of Rs 995.40 crore to take up different schemes under Kerala Sustainable Urban Development Project (KSUDP) in five Municipal Corporations.

There were many lapses in the formation and implementation of the project, it was stated.

Civic bodies could utilise only 51.48 per cent of the original loan sanctioned. "Lapse on the part of the government in not cancelling the loan portion relating to projects which could not be implemented within the specified time also led to payment of commitment charges amounting to Rs 43.68 crore to ADB", the report said.

Besides, the cancellation of the component 'Part-C Local Government Infrastructure Improvement' resulted in forgoing 15 million dollars ADB loan meant for financing infrastructure projects in 53 municipalities in the state.

The performance of the Corporations in response to the assistance received under the KSUDP therefore was far from satisfactory, the report said.

CAG on a performance audit and functioning of Kerala State Public Service Commission (KPSC) said delays in reporting of vacancies by government and conduct of selection process had resulted in lapsing of ranked lists without advising even a single candidate. In its report on General and Social sector, the report said due to delays in framing special rules, KPSC could not conduct selection to 41 corporations, companies and services of the state.

CAG also found fault with the state for not availing Centre assistance of Rs 134.91 crore under the centrally sponsored scheme for development of infrastructure facilities for judiciary.