Pushpa Srivani orders inquiry into Rs 1.1 cr scam in GCC

Amaravati: Deputy Chief Minister (Tribal) Pushpa Srivani has ordered an internal inquiry into certain alleged irregularities in the Girijan Co-operative Corporation, which led to a scam worth more than Rs 1.1 crore in the last five years tenure of the TDP government.

The Dy CM also expressed shock over unaudited accounts of the GCC in the last four years, while speaking with The Hans India on Friday at her chambers at Secretariat. She also ordered the GCC authorities to conduct an audit on the expenditure of the Corporation from the last four years. The officials informed that there was a problem in conducting audit since the bifurcation of the State. When the Dy CM asked what was the exact problem in conducting the audit, the officials could not explain the proper reason, which irked her. Reacting on it, she immediately ordered to conduct the audit.

The Dy CM held a review meeting with the officials from the GCC including PA Shobha, MD and VC, and others concerned on Friday. In this meeting, Srivani ordered for both inquiries into the alleged irregularities committed by certain officials to a tune of more than Rs 1.1 crore and the audit.

Sources in the Dy CM office informed that three officials have amassed the alleged corrupt money. The GCC officials including Malleswara Rao working at Chintapalli allegedly indulged in Rs 62 lakh scam, Appana working at Araku Godowns involved in Rs 45 lakh worth scam and another employee Ratnalamma working at Paderu indulged in Rs 9 lakh scam. The sources at the secretariat also informed that Ratnalamma was relative of the then MD and VC of GCC. In fact, the TDP government also conducted an inquiry into the scam but no officials were given punishment.

Appana was suspended but the alleged corrupt amount was not recovered. Ratnalamma was suspended and reappointed at the same post. Malleswara Rao was got an only transfer. But, the YSRCP government has taken a firm decision to recover the money from the alleged persons and punish them.

On the other hand, the government also found in the preliminary report, that the then MD and VC T Babu Rao Naidu appointed 135 employees in the Corporation, as per his wish and will. All these appointments were made through Outsourcing. Out of the 135, 33 from other than Tribal community. The Dy CM ordered Sobha to remove all the 135 outsourcing employees immediately and inquire into the matter too.

In addition to that, on the name of consultants, assistants and others, the GCC has spent more than Rs 60 lakh per annum. This was an additional and unnecessary burden on the Corporation observed the officials in the Tribal Welfare Department.

In another scam, the authorities have found that the gunny bags of the Corporation were sold at a throwaway price, at just Rs 0.50 per bag. The actual price of the bags was Rs 10. On the name of damaged bags, the officials sold them at a very low price.

Misuse of GCC funds on the name of brand building, skilling and others also found in the preliminary examination, sources in the department informed.

All these financial burdens and irregularities led to the loss of profits to the Corporation. At present, the GCC turnover is around Rs 340 crore and profit is just Rs 10 crore per annum, Srivani informed.