News: CAG report highlights mismanagement in PSUs

#Updates

CAG report highlights mismanagement in PSUs

The Comptroller and Auditor General of India, the government’s official auditor has come down heavily on the mismanagement plaguing the Public Sector Undertakings in the country. In its report released this week, the CAG has blamed irregular payment incentives, excessive expenditure and non-compliance to rules among other factors responsible for the loss amounting to Rs. 1,846 crore in PSUs. Referring to the instructions issued by the Department of Public Enterprise on payment of incentives to employees of PSUs, the CAG observed that that various PSUs continue to pay incentives in the form of ex-gratia, honorarium, reward, cash award, stagnation relief, and leave encashment to their employees which is in direct contravention of the DPE guidelines. In its report tabled before the Parliament, CAG also criticized the concerned ministries for not taking corrective measures despite such practices being brought to light by through various audit reports.

The Comptroller and Auditor General of India, the government’s official auditor has come down heavily on the mismanagement plaguing the Public Sector Undertakings in the country. In its report released this week, the CAG has blamed irregular payment incentives, excessive expenditure and non-compliance to rules among other factors responsible for the loss amounting to Rs. 1,846 crore in PSUs. Referring to the instructions issued by the Department of Public Enterprise on payment of incentives to employees of PSUs, the CAG observed that that various PSUs continue to pay incentives in the form of ex-gratia, honorarium, reward, cash award, stagnation relief, and leave encashment to their employees which is in direct contravention of the DPE guidelines. In its report tabled before the Parliament, CAG also criticized the concerned ministries for not taking corrective measures despite such practices being brought to light by through various audit reports.

Topics: #Updates, C-Suite, Culture

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