External Affairs Ministry was criticised by India’s Comptroller and Auditor General (CAG) for mismanaging its finances and losing money, in a recently released audit report.
The Overseas Citizenship of India (OCI) card scheme’s incorrect application of fees resulted in a revenue loss for the exchequer of 582.3 million rupees, according to the CAG. The establishment of Indian Cultural Centers in Paris and Washington was also criticised for having “irregularities,” according to the nation’s top auditor. Despite costly purchases of real estate in each of these capital cities, these buildings have not been used for about ten years.
According to an audit of how the Ministry applied OCI fees, 17 missions and posts throughout Europe as well as three in the UK failed to accurately adjust the exchange rates between local currencies and the US Dollar in order to determine OCI card fees. For instance, the aforementioned locations in Europe retained the OCI card price at 216 euros even though it was supposed to increase to 262 euros.
162.6 million rupees were lost in total revenue from the 17 missions and posts in Europe. According to the CAG, an identical misapplication of OCI fees in the UK “resulted in a loss of 419.7 million on the issue of fresh OCI cards at a lower exchange rate, during February 2017 and March 2020.”
The CAG disagreed with the MEA’s claim that the income loss was solely notional. The audit commission estimated that the under-collection of fees had cost the government 58 crore rupees.
The purchase of two vacant sites in Washington and Paris that were meant to be utilised as Indian Cultural Centers also drew a lot of attention.
The CAG in its report stated, “Due to inherent deficiencies, such as significant structural concerns and issues of encroachment at ICC Washington and delay in renovation (Paris), these properties could not be put to use as cultural centres even after nine and eleven years respectively.”
The report continues by posing important queries regarding the selection of the subject properties. It contends that the Ministry proceeded with the acquisition despite knowing in advance that the property chosen to serve as India’s Cultural Centre in Washington had serious flaws.
The audit body’s report stated, “Despite the fact that the Ministry was aware that the 103-year-old Property had significant structural concerns as also issues of encroachment, it did not opt-out from procurement of the same and consequently took on avoidable liabilities.”
The government paid close to 300 million rupees for the vacant property in Paris, plus an additional 148.9 million rupees for the expense of a security firm to guard the property.
Furthermore, the paper highlights “avoidable” costs incurred by India’s embassies in China and Jamaica. The High Commission in Jamaica was criticised for shoddy contracting procedures that resulted in a cost overrun of more than 5.1 million rupees, while the former is being investigated for questionable payments to contractors totalling 100 million rupees.
