THIRUVANANTHAPURAM: The latest CAG report (2016-17) said that
public sector undertakings (PSU) incurred an accumulated loss of Rs 6,348.10 crore. As on March 31, 2017, the state had 115 working PSUs (111 firms and four statutory corporations) and 15 non-working PSUs, including four under liquidation, said the report that was tabled in the assembly. "Working PSUs registered a turnover of Rs 26,463.28 crore which was equal to 4.04% of state's GDP," it said.
The finalized accounts of working PSUs revealed that 45 PSUs earned a profit of Rs 382.84 crore and 64 incurred a loss of Rs 2,216.01 crore, while two had neither profit nor loss. Four PSUs failed to finalize their accounts.
The major contributors to profit at various periods (between 2014 and 2016) included Bevco, KSFE and KSIDC, while the top loss-making PSUs were KSRTC, KSEB and
Kerala State Civil Supplies Corporation. As on March 31, 2017, the total investment (capital and long-term loans) in 130 PSUs stood at Rs 27,106.88 crore.
CAG, while auditing the performance of various government companies, found that the state did not implement various measures suggested by the coir commission, including mechanization and modernization. Absence of reliable data prevented formulation of strategic approach in the sector, it said.
On the performance of statutory corporations, CAG pointed out failure on the part of Kerala Industrial Infrastructure Development Corporation (KIIDC) in acquiring 4,087 acres for which the corporation had obtained administrative sanction from the government over a five-year period. "KIIDC did not acquire any land till December 2017 and the government dropped acquisition proceedings with respect to 1320 acres as they were not in conformity with corporation's selection criteria," it said.
Among other findings was non-compliance with revised stores purchase manual (SPM) and government orders by Malabar Cements Limited, for updating its purchase policy and procedures to incorporate the changes on mandatory e-procurement. "In four of the 21 tenders, the company divided the tendered quantity to multiple bidders, though the lowest bidder was ready to supply the entire quantity," it said.
Similarly, Civil Supplies Corporation, deviated from e-tendering, negotiated with bidders, 'exposing the company to the risk of manipulation by bidders by holding back their best rates and capturing major share of purchase orders after knowing competitor's rates'. Non-diversification of supply sources led to purchase at higher costs, said the report.
On the e-governance initiatives of electronics and information technology department, CAG said lack of coordination of initiatives by various departments resulted in duplication of expensive infrastructure. There were also deficiencies in ensuring security of data hosted by state data centre (SDC) due to non-formulation of disaster recovery and business continuity plans and absence of independent security audit.
