Scam aftermath: Fiat to State-owned entities
Following a multi-crore scam in the Valmiki ST Development Corporation, the State government has issued a circular imposing directives for “accountability and prudent management of public funds” at State-owned companies, local bodies, universities and medical colleges.
Chief Secretary Rajneesh Goel issued a circular to managing directors or CEOs of government entities that they should take up comprehensive reviews of banking operations and verify details of all term deposits.
Every organisation should maintain a separate register for all deposits. The register, kept in safe custody, should be produced before the internal auditor every month, the circular stated.
Noting that government-run organisations should have a “robust risk management framework”, it said all term deposits should be invested in joint accounts. Heads of the administrative departments (secretaries) should ensure compliance.
The circular said directors nominated by the government to State-run companies should ensure that board meetings were held at least once in a quarter. Also, nominated directors have to ensure that audit committees are constituted and regular meetings are held.
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