Audit report says delay in action by MC caused central funds to lapse
The audit report for the year 2010-11, obtained through Right to Information (RTI) Act, has revealed that central funds worth Rs. 1.15 crore had lapsed because of delay in action by the Kozhikode Municipal Corporation in implementing the Service Level Benchmark (SLB) project.
The SLB project is a pilot project being implemented in 20 cities including Kozhikode and Thiruvananthapuram to ensure minimum standards in drinking water distribution, solid waste processing, waste water disposal, and storm water drainage.
The audit showed that no meeting of the core committee to supervise the project took place for several months and the project proposal was prepared with a delay of nine months. The centre had passed the first installment for the project on the condition that the action plan and the fund utilization report be submitted within three months in order to get the second installment released. But the corporation submitted it eight months later only when the time period to utilise the first installment was over. The project was then cancelled according to the agreement and the Ministry of Urban Development issued orders to remit back the first installment with interest.
The audit report also stated that there were lapses in collecting professional tax, advertisement tax and the rent of shopping complexes and buildings owned by the corporation.