Rules framed for stricter NREGS audit
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COMMENTS 
To stem fraud in the National Rural Employment Guarantee Scheme, the Centre has framed new rules that call for a Directorate of Social Audit at the state level
Reports of forged job cards, fake labourer names, fake muster rolls and fudged numbers have dogged India’s National Rural Employment Guarantee Scheme (NREGS), one of the most important pieces of legislation in the country that guarantees 100 days of paid work to any rural household that asks for it.
Although the National Rural Employment Guarantee Act (NREGA) provides for social audits and monitoring of the scheme, these have not managed to check the misuse that occurs.
The government has therefore prepared a draft National Rural Employment Guarantee Audit of Schemes Rules 2011. Public comments have been sought on the rules before they are notified.
The rules call for establishing a Directorate of Social Audit at the state level, and an institutionalised mechanism whereby chartered accountants empanelled with the Comptroller and Auditor General (CAG) will conduct regular audits at the district level.
The Directorate will “facilitate and oversee the process of audit of accounts, including social audits, throughout the state and act as a coordinator between the CAG and the State Account General (Audit)”.
The rules permit civil society groups with the required grassroots experience to participate in the social audit. They also provide for an institutionalised mechanism of audit of expenditure at the district level under the CAG’s guidance.
The Directorate must ensure that at least one audit takes place every six months.
Financial and social audits are called for under the NREGA. The government admitted before the Supreme Court in January 2011 that the Centre had released Rs 1.08 lakh crore to states under the NREGS since February 2006, but did not carry out account auditing at any level. While Section 24 of the Act says the Centre will evolve an audit mechanism in consultation with the CAG, Section 17 lays down the concept of social audit.
The Ministry of Rural Development which administers the scheme has also tightened the reins on states by insisting that they provide utilisation certificates for any unspent money before receiving funds for the year. Earlier, states received funds at the beginning of the year.
Moreover, states will have to adhere to estimates made in their labour budgets and it will be mandatory for them to submit monthly progress reports. They will also be required to increase staffing for administration purposes and set up vigilance departments to provide 100% monitoring at the block level, 10% at the district level, and 2% monitoring at the state level.
Source: The Indian Express, March 25, 2011
http://www.im4change.org/rural-news-update/, March 2011