Question : Misuse of Funds under MGNREGS

(a) whether the Government has neither taken any steps to check the misuse of funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) nor taken any action against corrupt officials/persons responsible for implementation of the scheme;

(b) if so, the reaction of the Government thereto;

(c) the details of the action taken by the Government against the persons involved in corrupt activities under the said scheme during the last three years and the current year, State-wise; and

(d) the details of provisions made under MGNREGS to check the corrupt activities in the implementation of the scheme?

Statement in reply to Parts (a) to (d) of Lok Sabha Starred Question No. 289 for 15.03.2018

(a)to(c): The Ministry under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) receives complaints of irregularities including misuse of funds from States/UTs. Since the responsibility of implementation of MGNREGA vests with the State Governments, all complaints received in the Ministry are forwarded to the concerned State Governments for taking appropriate action including investigation, as per law. Detailed instructions by way of Standard Operating Procedure (SOP) for dealing with complaints have also been issued to all State/UTs.

(d): Section 27(2) of Mahatma Gandhi NREGA, 2005 states that ‘the Central Government may, on receipt of any complaint regarding lack of effective implementation of the provisions of the Act or regarding the improper utilization of funds granted under this Act, order an investigation into the complaint and if necessary, shall order stoppage of release of funds to the scheme if no appropriate remedial measures are instituted for proper implementation within a reasonable period of time as defined by the Central Government.’ The following provisions have been made under MGNREGS to check irregularities:

(i) The Ministry has implemented Ne-FMS/e-FMS for payment of wages directly into the accounts of the workers either in Banks/ Post Office.

(ii) DBT is being implemented under MGNREGA. The Aadhaar numbers are seeded into the program data base. As of now, Aadhaar numbers of 10.05 crore active workers have been seeded in the MIS.

(iii) Establishment of Independent Social Audit Unit at the State level for conducting Social Audit.

(iv) Engagement of National Level Monitors.

(v) Monitoring visit cum inspection at different level.

(vi) Engagement of Ombudsperson.

(vii) Job card verification exercise across all States.

(viii) Common Review Mission.

(ix) Internal audit by the office of Chief Controller Accounts- Rural Development (CCA-RD).

(x) Frequent field visits for inspection by the Ministry.

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