Andhra govt denies allegations of misappropriating Rs 48k crore, hits back at TDP

The Andhra Pradesh Finance Minister's Office (FMO) on Sunday, March 27, said the Finance Department made only book adjustments but did not spend Rs 48,000 crore through special bills (during 2020-21) and denied any misappropriation as was alleged. In a 13-page note, the FMO refuted former Finance Minister Yanamala Ramakrishnudu's charge on the issue and said there was no fraud, as no cash transaction took place. The FMO, however, remained silent on the objections by the Comptroller and Auditor General (CAG) on the issue by saying the Finance Secretary wrote an explanatory letter to the CAG. 

Earlier on Saturday, March 26, Telugu Desam Party (TDP) leader Yanamala Ramakrishnudu asked the Union government to invoke Article 360 of the Constitution and clamp "financial emergency" in Andhra Pradesh. He asked the Union government to simultaneously order an investigation by the CBI into alleged misappropriation of public money to the tune of Rs 48,000 crore by the state government in one year. "Into whose pockets has the Rs 48,284 crore gone," the former Finance Minister questioned, referring to financial transactions through 'special bills'.

Yanamala pointed out to the observations made by the Comptroller and Auditor General in the latest report on the state finances and said there was no provision for special bills in the Financial Code. Asserting that it was nothing but misappropriation, the TDP politburo member wanted an investigation by the CBI to unearth the facts. 

The FMO in its note blamed it all on the comprehensive financial management system (CFMS) put in place by the previous TDP (Telugu Desam Party) government. "The CFMS has not been systemized. Hence, book adjustments were shown as special bills,” it said. Also, the FMO evaded any reference to the observations of CAG on the financial mismanagement by the Jagan Mohan Reddy government and spending of public money to the tune of Rs 1.10 lakh crore in gross violation of the constitutional provisions. 

Referring to the reports of CAG on the accounts presented to the Legislature on March 25, Yanamala asked, “Into whose pockets has Rs 48,284 crore gone?” Yanamala, who is the Leader of Opposition in the Legislative Council, demanded an investigation by the CBI into the misappropriation of Rs 48,284 crore. The FMO said it was only a book adjustment transaction towards the end of the financial year, which was the practice. This existed even in 2018-19 when Yanamala was the Finance Minister, it added. 

In 2020-21, there was a shortfall of Rs 29,946 crore in revenue yet Rs 65,447 crore was disbursed to people under welfare schemes. “Our government focused more on handholding the poor during the COVID-19 crisis than spend money on infrastructural development. The TDP has no right to talk on welfare,” the FMO said.  (PTI)