NEW DELHI – A recent audit of the special financial powers enjoyed by chiefs of the six Army commands has found a over-Rs 100 crore loss to the exchequer between 2009 and 2011. Among decisions that resulted in losses were those approved by Army chief General Bikram Singh and his predecessor Gen V K Singh when they were heading the Kolkata-based Eastern Command.
The report recommended to the government that it should not consider enhancing the delegated powers of these senior Lieutenant Generals. “The whole system of delegated powers available to Army commanders needs to be reviewed in the light of our findings and recommendations, before initiating any further action in the matter,” the report by the Indian Defence Accounts Service said.
An Army spokesperson rubbished the findings, saying they were “inaccurate, unsubstantiated and speculative”. In a statement, he said, “All procurements from Army Commanders Special Financial Powers (ACSFP) are done through well laid out and time-tested procedures. All procurements of items from Army Commanders Special Financial Powers are vetted and concurred by Integrated Financial Advisors (IFA).”
The audit covered many purchases approved by the General Officer Commanding-in-Chief of the six Army commands between 2009 and 2011. The audit was done in 55 cases, and it assessed total financial loss of Rs 103.11 crore.
Under ACSFP, the chief of Northern Command can approve up to Rs 100 crore of purchases annually, and also has an additional Rs 25 crore budget for Rashtriya Rifles battalions. The Eastern Army Command chief has a limit of Rs 50 crore. Chiefs of other commands — central, south, southwest, west and training — have a ceiling of Rs 10 crore per annum.
“It has been observed that keeping in view the restrictive regime in which ACSFP is to be used, the budgetary allocations are much in excess of what Army commanders can actually project and spend,” the audit said.
Procurement of milk in northern command alone resulted in loss of Rs 94 crore. The audit found that tetra pack milk, which costs Rs 12-15 extra per litre and is required during winter months, was purchased far in excess of requirement.
