Diversion_of

Diversion of Funds to otherwise cash starved pet projects has been a standard devise used by governments to make use of cash flow available in disaster situation.

CAG reported, “Rs.1.43 crore diverted for non-flood works for post flood relief and rehabilitation across the state of Maharashtra over the 2005 and 2006 monsoons.”[i]

In the Gujarat earthquake, 121 out of 228 cases of subsidy payments to Industries, checked by the CAG, were in violation of norms. The CAG also pointed out that subsidy was sanctioned to 14 hotels for ineligible items like furniture/fixtures, kitchen wares etc., in violation of Government Resolution of April 2001, resulting in extra financial liability of Rs.6.9 million.[ii]

In Orissa, Executive Engineers of 20 Public Works Divisions irregularly diverted and misutilized funds of Rs.12.39 crore meant for Cyclone Damage Repairs (CDR) in order to clear liabilities on non-CDR works and execution of new non-cyclone related works. [Audit Report (Civil) Orissa for the year 2000-2001] CAG observed that Orissa government is needlessly using scarce resources. Road repair worth Rs.6 lakh in Kendrapara district was billed at Rs.60 lakh. Eighteen lakh rupees were spent on repairing the official bungalow of a high court judge. The money came from the National Fund for Calamity Relief. So far, Rs.29 crore of the Rs.107 crore cyclone fund has been used by the bankrupt state government to pay its employees’ salaries.[iii]

Despite the CAG reports, one has not heard of any inquiry or investigation being ordered into the hidden beneficiaries of such diversion. Besides being a corrupt practice, this is nothing short of injustice to the victims. Since victims are relatively disorganized and often kept happy with crumbs from the disaster funds cake, this method goes relatively unnoticed.

The Comptroller and Auditor General (CAG) has castigated relief authorities for diverting a sum of Rs.44.88 crore meant for tsunami relief to "committed liabilities and administrative expenditure".[iv]

CAG found that the states diverted as much as Rs.44.88 crore from the tsunami relief and rehabilitation kitty:
Andhra Pradesh sent Rs.2 crore for relief to earthquake victims in J&K and Rs.25 lakh to Andaman and Nicobar for tsunami relief.
Kerala diverted Rs.11.51 crore to meet administrative expenditure.

Pondicherry used Rs.19.66 crore for unconnected works and Rs.10.07 crore for unapproved fishermen's subsidies.[v]

CAG has also found that Tamil Nadu government has diverted Rs.11.41 crore received under the Rajiv Gandhi Rehabilitation package for meeting the committed liabilities of the fisheries Department, which was meant for Tsunami affected people.[vi]

In Kerala too, The Opposition had to walked out of the State Assembly on the issue of diversion of money meant for Tsunami. T. K. Devakumar of the CPI (M) alleged that a large share of the contributions received by the Chief Ministers Tsunami Relief Fund had been spent in areas totally unaffected by the tsunami. "For instance, Rs. 9 crores from the fund been diverted for laying pipes for water supply in Cherthala and Aroor constituencies," he alleged. [vii]

These practices by states are not acceptable. The money that is collected in the name of the victims has to be spent on them. Meanwhile every attempt was made by the government to get fishermen out of the shore line, while making exceptions to allow tourist / holiday commercial property development.

Development and aid have thus become new opportunities and more consumption for the haves, and displacement of the have-nots from their homes, their lands, and their resources, their livelihoods. Justice demands that people be allowed to rebuild their sustainable livelihoods in farming, fisheries and local trade in the Tsunami affected areas. Tsunami recovery needs above all the recovery of our ecological security, our common humanity and the human dignity and human rights of all citizens of the earth, especially the victims of disasters like the Tsunami.[viii]