By Sandeep Vellaram

Copyright thehindu

A recent report from the State Finance Inspection wing, operating under the Finance department, has exposed significant financial irregularities at the Periyar Tiger Reserve (PTR) in Thekkady.

The report, a copy of which has been obtained by The Hindu, reveals that PTR authorities established a “Park Welfare Fund” (PWF) in 2004 and subsequently diverted tourism-related income into it without the requisite government approval. Kerala Finance Minister K.N. Balagopal has reportedly approved the inspection’s recommendations and forwarded the report to Forests Minister A.K. Saseendran for immediate action.

The detailed inspection was initiated at the request of Mr. Saseendran following a complaint filed in February 2024 by the Kerala Non-Gazetted Employees Association (NGEA) regarding alleged financial mismanagement within the reserve.

Unauthorised fund

A core finding of the inspection is the unauthorised formation of the welfare fund. The report states, “The inspection revealed that there was no government order or direction to form the PWF. The PTR authorities violated norms by forming a fund without prior government order.” The officials were reportedly unable to produce any valid order authorising the fund’s establishment.

The report highlights that “without a proper government order or rules, the entire tourism income was diverted to the park welfare fund, and its use was for purchases and other activities without proper rules.” This unauthorised fund has been operational for two decades, with the authorities failing to secure government approval. The report decries this situation as “clear negligence and a violation of government rules,” urging the Forest department to conduct an immediate verification and take swift action against the misuse of government funds. It also recommends a proper audit and an exploration of depositing a share of the income into the government treasury.

Further irregularities were uncovered during the examination of purchase files. The report notes that “estimates are prepared without proper verification and do not seek technical advice,” pointing to a lack of due diligence in financial planning. Moreover, it states, “There is no proper promotion for the quotation notice, and it is a clear violation of the stores purchase rules.”

Without consultation

A concerning practice identified is the widespread use of “piecemeal” purchasing to bypass the mandatory tender process for larger procurements. Even in critical initiatives, such as the installation of solar fencing to mitigate wild animal attacks in border areas, the report found that “estimates for preparing such works were made without consulting an expert agency,” raising questions about the efficacy and cost-effectiveness of these projects.

The report also sheds light on the unlawful allotment of significant advance payments for works at the PTR. Over the years, the PTR has disbursed “crores of rupees as advances,” with a staggering ₹4.85 crore allotted for various projects. However, the authorities have “failed to ensure timely settlement of advances as per the Kerala Financial code.” The report recommends that these outstanding amounts “should be collected from the officers at 18% penal interest.”

Forest dept.’s stand

Meanwhile, PTR East deputy director P.U. Saju said that the Forest department has not yet received a copy of the financial inspection report.

“As per our information, the report is not yet finalised. We will know any details only once we get a copy of the report,” said the official.