CAG seeks report from Assam Govt on Rs 22,000 cr unpaid contractor dues

The department of Accountant General (Audit) has sought full information on total funds allocated along with the pending dues to be disbursed by Assam government to various institutions, contractors involved in government projects until March 31, 2022.

A senior accounts officer of the Accountant General (Audit) office sent an emergency letter in this regard to the director of the budget branch of the finance department of the Assam government.

Meanwhile, following such an emergency letter from the senior accounts officer, the finance department has ordered detailed information of all the bills cleared/uncleared by the state government of Assam to be submitted by the secretary in charge of each administrative department.

An emergency letter has been sent to the Secretary, Deputy Secretary, Secretary of  ‘’Ministry of Home Affairs’’ Assam, to provide details of the amount to be paid to the contractor in the name of implementation of major projects till March 31st, 2022.

The report ordered submission with details on how much funds are to be paid as promised by the government in the name of land acquisition and how much funds are to be paid to the contractor against the non-payment bill in the name of supply of various works and materials.

A source in Dispur said that the state government is yet to clear bills amounting to Rs 22,000 crore to be given to the contractors and contractors associated with land acquisition till March 31 of this year. Out of this, the state government has to pay around Rs 17,000 crore to the contractors for the its previous year between 2020-21. Out of this, the state government's water resources department alone has to pay around Rs 600 crore to the contractors.
Similarly, health, education, Backward Classes Welfare Department, Public works department, Water Resources, Public Health, Social Welfare etc. have to pay more than Rs. 12,000 crore.

 It may be recalled that after the BJP took over in Assam in 2016, it focused more on implementing beneficiary schemes instead of development activities in the state in the interest of the only vote.

The Modi government at the Centre, which is running a beneficiary scheme with bank loans for not paying the funds due to Assam, has been showing extreme discrepancy in providing the funds due to contractors and suppliers who have been working in various departments for a long time. Due to which the amount of funds to be paid to contractors and employees increases rapidly over the years

A similar incident took place in the last financial year 2021-22. The government, which is barely in a position to repay loans taken from various banks and financial institutions, pays only a few per cent of the funds they of which 90 per cent of the contractors working in various departments under SOPD in the financial year 2021-22, are still waiting their dues.

The finance department recently released some work bills for the financial year 2021-22 though the state treasury is reportedly blocking all such bills due to lack of funds.