Monday, March 19, 2018

Govt steps in after detecting misappropriation of funds

Times of India: Thiruvananthapuram: Monday, March 19, 2018.
After detecting large-scale misappropriation of funds from the advocate welfare fund, the government has decided to take over the control of printing of stamps and yearly audit of the accounts, both of which are the duties of state bar council, at present. For this purpose, the law department has decided to make necessary changes to the Kerala Advocate Welfare Fund Act (1980), a proposal that has been cleared by chief minister Pinarayi Vijayan.
The file in this regard (accessed by TOI under RTI Act) says that it has been decided to effectively control the functioning of the trustee committee (that manages the fund). The responsibility of printing stamps will be done by the government and state audit department will audit the accounts of the committee every year.
At the same time, the recommendation of law secretary BG Harindranath - to amend that the section 4 (3) (f) that appoints the bar council secretary as the ex-officio secretary of the trustee committee - was rejected by law minister AK Balan. The law secretary recommendation was to replace the bar council secretary as the secretary of the trustee committee with an officer of the rank of deputy secretary or above from the law department. It was the third step to ensure transparency in the functioning of the trustee committee.
As per Section 11 of the Act, the secretary is authorized to operate the bank accounts of the trustee committee, inspect and verify periodically the accounts and registers of the bar associations regarding the sale of stamps. To control the large-scale misappropriations in the printing and sales of stamps, the law department has decided to amend Section 22 of the Act, by taking over the printing of stamps. The council will have the power only to sell stamps through the bar associations or through outlets set up by the council. Also, the new amendment says that the accounts relating to stamps shall be subject to periodic inspection by an officer (not below the rank of a joint secretary) from the finance department. A new section 10A will be introduced that says- 'the audit department shall audit the accounts of the fund every year and audit report shall be submitted to the government in accordance with the Kerala Local Fund Audit Act, 1994'.
After detecting huge corruption in the advocate welfare fund intended for providing financial relief to retired and serving advocates, the government had ordered a vigilance probe. An audit done last year exposed serious irregularities, including missing account books and how the books (that were available) were manipulated to adjust misappropriation to the tune of Rs 70 lakh.