Audit Report Puts Kerafed in the Dock THIRUVANANTHAPURAM : An audit report on Kerafed has unearthed serious irregularities such as payment of salaries to over 1,000 temporary employees for nearly two years even after expiry of their service term, procuring fresh coconut at exorbitant rates without proper sanction and under-valuation of stock. The report by the Directorate of Cooperative Audit, accessed by ‘Express’, says that out of 1,017 casual workers, nearly 340 were accountants. They were deployed by Kerafed - the apex body of co-operative societies involving coconut farmers - for procurement-related work in Krishi Bhavans in 2012. The accountants were entitled to a monthly remuneration of `9,000 per month. “According to the circular of the Agriculture Director dated 15-12-2012, the employment tenure of the temporary accountants was only for six months. However, they still continue to function and draw monthly remuneration even when Kerafed is not involved in procurement activities,” the audit report said. The report warns that “such irregular actions of Kerafed will seriously affect its financial position.” Incidentally, Kerafed’s net profit nosedived from `10.64 crore in 2012-13 to a mere `1.22 crore in 2013-14. The audit report points out that Kerafed procured fresh coconut for the 2012-13 fiscal to arrest the fall in coconut prices. The government allocated `21 crore to Kerafed for the purpose. As per the procurement scheme - a joint venture of the Agriculture Department and Kerafed - de-husked fresh coconuts were to be procured from farmers at the rate of `14 per kg. The report points out that coconut was procured for very high rates without proper sanction from the government. Though the report did not mention the exact rates, top sources in Kerafed said that the procurement price which started at `14 a kg rose to `21 and even as high as `32 per kg, causing a huge burden to the organisation. The audit report found that 188.75 tonne of copra, worth `1.75 crore, was not included in Kerafed’s stock statement. “The reason why stock worth such a large amount was not included in the stock statement needs to be probed,” the report recommended. Out of the `21 crore allocated by the government, a major portion was spent as expenses for setting up copra driers. However, Kerafed entrusted the task of drying copra to private companies at a time when rules clearly state that there is no provision to set up driers in private firms. The audit report also says that the quantity of fresh coconut and copra in each drier for the year 2013-14 was not made available.
Posted on: Fri, 17 Oct 2014 05:07:54 +0000
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