WE THE PEOPLE
Despite huge losses suffered due to fire, thefts and deterioration of timber, no corrective measure stands taken by SFC so far
Hence people urge Authorities to take insurance cover against recurring losses and improve storage facilities to maintain quality
By: M. Shirjeel
Srinagar: We have stated that stock losses of the State Forest Corporation have gone up to Rs 272 crores over a span of 27 years, but the Auditors have found nothing on record to indicate that the case of losses had ever been investigated and follow up action/corrective measures taken to check recurrence of such eventualities in future. Further, the Corporation had not taken insurance cover against these recurring losses to safeguard its interests.
It has been revealed that the Corporation allotted extraction/transportation work of two compartments 10 to the extent of 0.68 lakh cft of Bhalessa (No. 38 and 39) to a private contractor in June 2001. After completing extraction work of 0.452-lakh cft, the contractor started transportation of the timber after a lapse of 2-3 years due to dispute over settlement of rates. Owing to belated transportation, quantity of 0.16 cfts of timber (out of total of 0.45 cfts) extracted by the contractor deteriorated. Of the remaining 0.29 cfts, timber measuring 0.26 cfts lying at the Mahan head, were washed away during floods of April-July 2006, of which only 4500 scants (0.12 cfts) could be salvaged. Thus, the Corporation suffered loss of 0.30 lakh cfts of timber valued at Rs. 77.07 lakh, for which no responsibility had been fixed.
It is worth mentioning that the period from October to February is considered suitable for undertaking Mahaning. It has been observed that the Corporation had allotted Mahaning works in June 2005, involving 0.87 lakh cfts of timber of Compartment 65/66 Marmat, to a contractor, which was not an appropriate season for undertaking such work. Consequently, stock measuring 0.23 lakh cfts valued at Rs. 59.08 lakh were washed away in the floods during July 2005. Moreover, the Corporation paid Rs. 4.18 lakh in April 2006 to the contractor for the work executed by him on the washed away stock, resulting in additional loss to the Corporation.
It has come to surface that the work of extraction/Mahaning of two compartment (77-b and c Siraj) involving 0.52 lakh cft of timber was allotted (December 2003/June 2004) to a contractor for completion by March 2005. The contractor started the work in October 2004 and delivered the timber at the Mahan head in January 2005.. He, however, did not undertake the Mahaning activities immediately, so as to complete the work within the stipulated period (March 2005). Subsequently, the stock caught fire in June 2005, as a result the Corporation suffered loss of 0.44 lakh cfts of timber valued at Rs. 1.89 crore.
“ It is worth mentioning that the Accounts Manual specifies the closing inventory at the transit depots should not exceed three per cent of the total arrivals at the depot during the year. It has, however, been noticed that in the Kashmir Division, the percentage of inventory maintained at the transit depots at the close of each year, between 2002-03 and 2006-07, ranged between 16 and 49 per cent,” said a group of knowledgeable persons of city of Srinagar.
Similarly, at the sale depots, the inventory at the close of the year should not exceed 7 per cent of the annual sale targets for the year. A detailed scrutiny has revealed that in contravention of the norms prescribed in the Accounts Manual, the percentage of inventory at sale depots ranged between 14 and 24 of the annual sale targets between 2002-03 and 2006-07.
Thus, holding of stock beyond the permissible limits indicated defective inventory management, lack of supervision, besides exposure of stock to various risks including thefts, floods, fire, etc.
It has been observed that due to prolonged storage and inadequate storage facilities, the quality of various species of timber, measuring 12.30 lakh cfts deteriorated in various Sales Depots of the Jammu Region during 2001-06. The stock was, therefore, sold at reduced rates, resulting in loss of Rs. 17.61 crore to the Corporation. Similarly, in Kashmir Region, the Corporation sold 3,439 cfts of timber of different species at reduced rates during the same period, resulting in a loss of 3.80 lakh.
Hence people urge Authorities to take insurance cover against recurring losses and improve storage facilities to maintain quality. Since stock losses have been accumulating annually, so it becomes imperative to Safeguard State property at all costs and preserve quality of timber to avoid reduced rates.
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