The audit scrutiny of Pune Municipal Corporation’s (PMC) 24×7 water supply initiative has unveiled a series of concerns, as per the state government’s draft audit report spanning from 2018 to 2021.
The report, delivered by the local fund audit office in Navi Mumbai to PMC on April 4, delineates several key issues, including transparency lapses in project procedures, financial setbacks due to implementation delays, breaches of contract terms, ambiguous project objectives, and duplicative costs for debris removal. PMC launched this ambitious venture in 2018 with the aim of reducing water leakage by 40% within the municipal water distribution system over the next three decades, entailing an estimated expenditure of ₹2,818.46 crore. The project, which commenced post the appointment of a consultant and meticulous project planning, garnered approval in May 2015.
In June 2017, the standing committee sanctioned a loan bond of up to ₹2,264 crore for the project, with provisions for additional funds of up to 20% of the approved sum. Despite securing a loan of ₹200 crore for the project, concerns arise as ₹348.75 crore were withdrawn from the deposit account during the audit period, with inadequate documentation on bond purchase rates and repayment terms, raising doubts about the transparency of the process. Out of the approved ₹200 crores for debt securities, ₹148.75 crore appears unaccounted for, according to the report. Moreover, although the financial blueprint for the water supply scheme was ratified, the audit lacked access to a copy of the plan.
A senior official from PMC’s accounts and audit department clarified that the audit report constitutes a routine procedure, with the primary report received from the state government. The department has instructed the concerned departments to address the raised objections and furnish a compliance report, which will subsequently be forwarded to the state government audit department for further scrutiny and action. The audit report underscores critical issues surrounding PMC’s water supply endeavour, stressing the imperative of transparency, documentation, and adherence to ensure the effective execution and utilisation of resources.
