WE THE PEOPLE
SFC has paid Rs 6.56 crores to various Forest Agencies for afforestation, but without positive dividends so far
Hence people urge concerned Authorities to take effective measures to boost regeneration of forests in J&K
By: Aleesa Shah
Srinagar: The State Forest Corporation Act, 1978 prescribes holding of meetings of the BODs once in every three months. However, it has been observed that during the period 2001 to 2006, the Board of Directors had met only on five occasions against prescribed 20 meetings. This was against healthy corporate governance and was liable to impact the decision making process of the Corporation. Thus, unrealistic projections indicated lack of effective planning, incorrect assessment of the requirements of the funds and laxity in control over expenditure. Moreover, incurring of expenditure pending approval of BEs by the BODs, was irregular and defeated the objective of framing of a healthy budgetary policy.
Pertinent to mention that the physical verification of stock of all the sales depots is conducted annually. Physical verification of the store/sales depots of the East and the West Marketing Divisions, Jammu has revealed shortage of stock aggregating 1.43 lakh cfts during the period between 2001-2007 (excepting 2003-2004). The cost of the timber, based on the average sale rate from time to time, worked out of Rs. 4.40 crore. It has been observed that the Corporation had neither investigated the matter nor fixed responsibility for the shortages.
The Corporation did not have a proper system to account for stock supplied to the various departments/agencies. It has been noticed that in one case, the Corporation came to know about stock supplied by it only, when a commission agent claimed in August 2001 from the Corporation the commission charges of Rs. 13.40 lakh for supply of stock worth Rs. 73.22 lakh through him. This casts doubts on the Management’s claim that there is no lacuna in the system of supplying stock to government departments/undertakings.
It is worth mentioning that two Divisional Managers at Srinagar and Jammu head Internal Audit Wing of the Corporation. Several deficiencies stand detected in the Internal Audit being conducted by the Corporation:No internal audit manual has been framed.The Internal Audit Wing is required to conduct audit of monthly accounts received from its various divisions by 10th of the following month. However, there has been delay in submission of monthly accounts ranging between one month and one year. The Corporation has initiated no action to remedy the problem except for issuing routine reminders.
Besides the Internal Audit Wing not prepared any calendar of inspections and had conducted field inspection of only one Bhaderwah Division during the period between 2001 and 2006. The Corporation had not framed a Vigilance Manual. As a result, the role and responsibilities of various functionaries have not been defined. The Wing had no record to indicate details regarding receipt of complaints, enquiries conducted, cases referred to higher authorities for disciplinary/departmental action.
There exists no record to indicate calendar of inspections and surprise checks conducted by the wing. It is all the more astonishing that no review on the functioning of the Wing stands conducted by the Board of Directors during the period between 2001 and 2006.
With a view to maintain ecological balance, the Corporation, at the instance of the Principal Chief Conservation of Forests, sets aside 50 per cent of the sale proceeds of the Pathankot Sale Depot for undertaking afforestation programme to give boost to the development and regeneration of forests in the State. The Corporation paid Rs. 6.56 crore (between April 2001 and January 2007) to various Forest Development Agencies (FDAs), for undertaking afforestation programmes. Audit, however, observed that the amounts were advanced without stipulating any time limit for submission of utilization certificates. As a result, utilization certificates for Rs. 2.85 crore (out of Rs. 6.56 crore) were awaited (September 2007) from these Agencies. It was also noticed that the Corporation had no mechanism to ensure that funds paid to these FDAs were utilized for the envisaged purpose. The Management stated (September 2007) that these FDAs were being pursued to furnish utilization certificates.
Hence the Corporation needs to come out with a clear cut Auction Plan to overhead its functioning, which should be based on targets and achievements; frame a realistic Annual Working Plan for extraction of markings, keeping in view the manpower and working season. It must adhere to the instructions of the Committee on Public Undertakings/Board of Directors/Accounts Manual with regard to Budgetary Control, Inventory Management and allotment of works for extraction/transportation. It must evolve sound system to exercise control over outturn and production quality; and purse insurance claims vigorously and file suits against insurance Companies (Concluded).
More 
