Proof against more PR officials in scam

KURNOOL: It has been proved that some more panchayat raj (PR) officials allegedly involved in the stationary scam misused over Rs 2 crore.
According to highly placed sources, the government is contemplating suspending three more executive engineers (EEs), six accounts officers, five superintendents, three senior assistants and four junior assistants in Kurnool and Anantapur districts.
Criminal cases are likely to be booked against the owners of 30 firms, 18 of them bogus, who supplied stationary worth Rs 2.90 crore for the department. A comprehensive inquiry report of the vigilance & enforcement department has been submitted to the government about two weeks ago. It had named all officers and the firm owners, who were allegedly involved in the scam.
Sources disclosed that the report also mentioned the name of a former minister’s close relative, who, according to the report, visited Kurnool and stayed at a star hotel along with the panchayat raj SE and pressurised the officials to pay bills to bogus firms.
According to the report, though the department paid Rs 2.90 crore, stationary worth only Rs 90 lakh was received by the department. The maximum annual requirement of the department for Kurnool and Anantapur districts is about Rs 38 lakh, but it had spent about Rs 3 crore. The Rs 3 lakh travelling allowance forms, which were bought for Rs 2 and Rs 3 per form, will be sufficient for the next 20 years. The original rate of each form is 50 paise.
The government rules say that tenders should be called if any purchase exceeds Rs 10,000, but the PR engineers allegedly brushed aside all rules. They paid Rs 45 lakh to various firms, even though the firms did not supply material.
The SE and the EEs diverted funds meant for the development activities and the deposit amounts of contractors to purchase stationary. The payments were made from September 9, 2001 to August 2, 2002.
The report also said that the engineers made arrangements to purchase additional stationary worth Rs 1.50 lakh. As several firms were not registered and supplied stationary without proper bills, the government lost over Rs 22 lakh towards sales tax. Based on the report, the government will take action against the officers and firm owners, a senior police officer said.
The scam led to the resignation of minister P Srinivas Reddy. PR superintending engineer K Rama Rao and three EEs have been suspended.