Disaster Relief Fraud: Assam Officials Accused of Falsifying Tarpaulin Purchases

An audit by the Comptroller and Auditor General (CAG) has exposed serious financial irregularities in Assam’s Revenue and Disaster Management Department, leading to the misuse of state funds worth ₹87.88 lakh. The report implicates senior officials, including the Deputy Commissioner (DC) and Additional Deputy Commissioner (ADC) of Charaideo district, for allegedly authorising excessive and fraudulent expenditures on the procurement of tarpaulin sheets intended for disaster relief.

The CAG’s findings, published in a detailed audit, point to gross violations of financial prudence, procurement rules, and suspected fraudulent activities surrounding the acquisition of materials for flood relief during 2020 and 2021.

The Procurement Debacle: ₹73 Lakh in Excess Expenditure

According to the audit report, the procurement of 11,500 tarpaulin sheets by the DC of Charaideo in 2020 and 2021 was marred by multiple violations of Assam’s Financial Rules and Public Procurement Act. The DC’s office spent ₹1.76 crore on the tarpaulins, citing approved rates of ₹1,500-1,550 per sheet from five different suppliers. However, a joint physical verification revealed that the actual market price of the tarpaulins ranged from ₹720 to ₹900, which meant the state had overpaid by a staggering ₹73 lakh.

The CAG noted that lower bids from suppliers quoting prices as low as ₹500 were dismissed under dubious grounds, including vague claims about non-local suppliers and unsubstantiated market rate assessments. In several cases, supply orders were handed to companies that had not even participated in the bidding process. This selective awarding of contracts not only violated procurement norms but also raised suspicions of favouritism and inflated pricing.

“The process of competitive price discovery, as mandated by procurement rules, was completely bypassed. Arbitrary rejections of lower bids and allocation to higher bidders suggest a well-orchestrated scheme to siphon off public funds,” stated the audit.

The Phantom Tarpaulins: ₹14.88 Lakh Suspected Fraud

In a further damning revelation, the CAG report highlights a second instance of suspected fraud involving the procurement of an additional 1,000 tarpaulins by the ADC of Charaideo in May 2020. The tarpaulins, ordered at ₹1,550 per piece, were allegedly delivered, and the contractor was paid ₹14.88 lakh for the supply. However, the materials were never recorded in the government’s stock registers.

According to the audit, no documentation or stock entry could confirm that the tarpaulins were received. The supposed receipt of the materials was confirmed only by a handwritten challan on plain paper with no official details. Further investigations revealed that the Circle Officers (COs) responsible for distributing relief materials had no record of receiving these additional 1,000 tarpaulins.

“The absence of any documentation or stock entries regarding the additional 1,000 tarpaulins, combined with the hand-written challan, points to a clear case of fraud. The contractor was paid for materials that likely never existed,” the audit noted.

Misuse of Disaster Relief Funds

The DC’s office, in response to the audit’s findings, claimed that the tarpaulins were distributed among storm-affected families, security forces, and even quarantine centres during the COVID-19 pandemic. However, the audit dismissed these justifications, stating that there was already an excess of unutilised tarpaulins in stock, which made the additional procurement unnecessary. The lack of documentation confirming the actual receipt and distribution of these materials further fuels suspicions of fraud.

Despite these claims, the audit firmly rejected the DC’s explanations, noting that “no record exists” of additional tarpaulins being delivered, and pointed out that unutilised stock already lay in the district’s warehouses.

Government Response and Pending Action

The CAG report, forwarded to the state government in October 2022, has led to an ongoing inquiry. At an exit meeting between audit officials and the Revenue and Disaster Management Department, the department’s secretary assured that all relevant documents would be submitted to the auditors for further review. As of April 2023, the documentation has not been provided.

The government has been urged to hold accountable the officials responsible for the financial discrepancies, particularly the ADC involved in the suspected ₹14.88 lakh fraud. If substantiated, this scandal not only exposes the misuse of public funds during a time of humanitarian crisis but also casts a shadow on the transparency of disaster relief efforts in Assam.

Calls for Accountability

The fallout from the CAG’s findings has prompted calls for greater transparency and accountability in the state’s disaster management process. Civil society organisations and opposition leaders have expressed outrage over the misuse of funds meant for the flood-affected population, demanding swift action against the officials involved.

“This scandal reflects the systemic corruption that has plagued disaster relief efforts in Assam for years,” said a local activist. “We cannot let those responsible for robbing vulnerable citizens during times of crisis go unpunished.”

With nearly ₹88 lakh of state funds at stake, the spotlight is now on the Assam government to take decisive action and restore public trust in the handling of disaster management and relief operations.