CAG Suspects Fraud in Odisha’s PMS Scheme

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Bhubaneswar: The Comptroller and Auditor General of India (CAG) has suspected corruption and fraud in the post-matric scholarship (PMS) scheme implementation under direct benefit transfer (DBT) in Odisha.

CAG on Tuesday produced the report before the state assembly that highlighted the performance audit of the implementation of direct benefit transfer in payment of post-matric scholarships to eligible students in the state.

”Due to the absence of detailed checklist for inspection of private educational institutions, 5,185 beneficiaries of 15 ineligible institutions, had been granted PMS, amounting to Rs 15.79 crore, during financial years 2016-17 to 2016-20,” the report said.

The welfare extension officers (WEOs) and assistant district welfare officers (ADWOs) in September and October 2021 carried out joint physical inspections in 16 institutions affiliated with the National Council of Vocational Research and Training (NCVRT) and Bharat Sevak Samaj (BSS). It was found that 8 institutions out of 16 were not in existence. 

“The Prerana (PMS scheme portal) software was also not equipped properly to identify and filter out these ineligible institutes. As a result, PMS, amounting to Rs 15.79 crore, was appropriated by non-existing institutes,” the report added.

However, the Ministry of Social Justice and Empowerment imposed its mandatory guidelines in May 2018 which made it compulsory for the inspection of private educational institutions by officials nominated by the district collectors. But there was no provision for inspection of private educational institutions for sanctioning PMS, CAG noted. 

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