Transaction Audit - Comptroller and Auditor General of India

Chapter IV – Transaction Auditlaboratory services at affordable cost and generating employment for women. Theproject envisaged setting up of clinical laboratories in Primary Health Centres(PHCs) in 52 Grama Panchayats at a total cost of Rs 31.20 lakh. This includes Rs26 lakh for purchase of equipments and chemicals and Rs 5.20 lakh for creatinginfrastructure facilities. The laboratories were to start functioning in December2001.The Implementing Officer placed (August 2002) orders for supply of equipmentsand chemicals for 46 laboratories with a local firm without ensuring provision ofinfrastructure facilities at the PHCs. He obtained an invoice from the supplier,certified receipt of the materials in good condition, recorded entries in the stockregisters and made payment of Rs 22.64 lakh (between January – March 2003)but kept the items in the premises of the supplier. The Implementing Officerstarted lifting the goods for delivery to PHCs after the expiry of 14 months fromthe date of supply. He made distribution (between March – July 2004) ofequipment and chemicals to 19 PHCs even though infrastructure was not ready in11 PHCs.The guarantee period of two years on equipments and chemicals expired inDecember 2004 even though 27 PHCs (out of which infrastructure was not readyin 22) were yet to receive the supply. The District Panchayat did not appointlaboratory technicians in any of the PHCs.Failure to synchronize purchase of equipments and chemicals with completion ofthe infrastructure facilities rendered expenditure of Rs 22.64 lakh unfruitful. As aresult, the objective of providing employment to women in paramedical field andextension of laboratory services at affordable costs to rural population remainedillusory.The matter was referred to Government in June 2004; reply has not beenreceived(December 2004).4.6 Idle investment on establishment of blood banksInvestment of Rs 20.28 lakh made during 1997-2002 for creation of bloodbanks remained unproductive as Local Self Government Institutions failed toprovide requisite infrastructure for the blood banks.Local Self Government Institutions (LSGIs) formulated projects for establishmentof blood banks during 1997-2001. As per the project report, the LSGIs were toconstruct buildings, procure necessary equipment, secure mandatory licencesfrom Drugs Controller, appoint required staff and provide other infrastructurefacilities like water supply, electricity etc. Test-check of the accounts of fourLSGIs disclosed that Rs 20.28 lakh spent during 1997-2002 on construction ofbuildings to house the blood banks remained unfruitful for reasons given in thefollowing table:49