DMF Funds Used for Non-Mining Activities, CAG Report Exposes Irregularities

Odisha is reeling from the consequences of mining operations. With a CAG report casting a spotlight on the misappropriation of funds earmarked for those impacted by mining activities. The report, presented to the state Assembly on Monday, has exposed a Rs 25 crore diversion from the DMF in Sundergarh, ostensibly for non-administrative purposes.

The funds were allegedly repurposed for a police patrol vehicle, municipal office renovations, a Collector's residence reading room upgrade, and school events.

The CAG report also found that Rs 2.65 crore was paid out by the DMF. Sundergarh, for Covid incentives to 62 doctors and other regular/outsourced medical staff, instead of expenditure being made out of the chief minister’s relief fund.

In Jajpur district, the authorities spent Rs 16.56 lakh from DMF fund for procurement of a vehicle. Meanwhile, Rs 4.63 crore was released from Sundargarh towards Rourkela SP for procurement of 25 patrolling vehicles. The amount was re-deposited without interest.

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The report found that an amount of Rs 136.77 crore was sanctioned by DMF. Sundargarh, for construction of a stadium in Rourkela, billed as the world’s largest fully seated field hockey stadium with over 20,000 seating capacity.

However, the construction of the international hockey stadium out of DMF funds was found to be irregular and defeated the purpose of collecting funds for the welfare of affected people in the district.

During the Covid pandemic, PPE kits were supplied to 44,120 workers/labourers engaged in mines and industries owned by private/PSU organisations in Sundargarh with an expenditure of Rs 59.13 crore. The report also found that an expenditure of Rs 1.02 crore was incurred by authorities in Sundargarh on various expenditures.

This includes hiring charges of vehicles, supervision charges, and deposit of CGST, SGST, and IT on previous bills for a plantation scheme.

Financial irregularities have been found in the DMF of Odisha. With an amount of Rs 25 crore diverted from the fund for non-mining activities in Sundergarh. The report also found that Rs 136.77 crore was sanctioned for construction of an international hockey stadium in Rourkela.

However, the construction was found to be irregular. Additionally, PPE kits were supplied to workers during the Covid pandemic, but there were irregular expenditures made by the authorities.

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The financial irregularities found in the DMF of Odisha have significant implications for the state's mining industry. The misuse of funds meant for the welfare of people affected by mining activities raises concerns about the transparency and accountability of the state government.

The CAG report has highlighted the need for stricter oversight and regulation of the DMF to prevent such irregularities in the future.

The findings of the CAG report have sparked a need for a thorough review of the DMF's financial management and governance. The state government must take immediate action to address the financial irregularities and ensure that the DMF is used for its intended purpose.

This will not only help to restore trust in the government but also ensure that the welfare of people affected by mining activities is prioritised.