CAG hauls up state mining corporation over CSR spend

BHUBANESWAR: The Comptroller and Auditor General (CAG) has pulled up the Odisha Mining Corporation (OMC) for spending less than 10% of its Corporate Social Responsibility (CSR) funds to develop mining areas while spending more in non-mining sectors. Between 2010 and 2014, the annual spend ranged from 2-9% of the CSR funds agaCAG pointed out in a report tabled in the assembly at the recent monsoon session.
"Against stipulation of 60% expenditure in the districts where mines are situated, the actual expenditure during 2010-14 ranged from 2.12 to 9.02%," the CAG observed.
The report also said that the OMC spent only 0.08% to 4.8% in areas within the 8km radius of the mines against a stipulation of 15%. But in districts where there are no mines, the OMC spent a whopping 90% to 97%, far exceeding the upper limit of 40% for non-mining areas, the CAG observed.
"Improper release of funds for peripheral development and CSR activities in contravention to its objectives and extant policies didn't maximise the socio-economic wellbeing of the local people as maximum funds were not utilised in the mines periphery areas," the report pointed out. "Non-compliance of CSR budget allocation was in violation of its own policy."
The report says the OMC donated 85% to 94% to CMRF alone. In 2010-11, it released Rs 200 crore to CMRF out of which authorities used Rs 156.57 crore for implementation of various government schemes and not for the development of the mining areas.
The audit watchdog also flayed the OMC for releasing Rs 2 crore from its CSR funds to sponsor a hockey team in the Hockey India League in 2014, and Rs 61 lakh for the renovation and modernization of government offices between 2010 and 2014.
While justifying its CSR spending, the OMC told the audit body that since it had no control in utilization of CMRF funds and should not be held accountable for the way the donated money was used. Regarding sponsoring a hockey team, the state PSU said it released funds to promote the game in the state. The CAG, however, said the OMC should have ensured through an agreement that the CMRF authorities used the money in developing mining areas.