The Comptroller & Audit General of India (who is the main auditor of government accounts) has been regularly reporting that relief funds are being spent without proper verification of records or procedure. In the earthquake in Gujarat, CAG observed that the director of agriculture had procured farmers’ kits worth Rs.242.9 millions without due procedure.[i] Failure to upgrade damaged houses in a uniform way and payment of housing assistance to ineligible beneficiaries led to increase in expenditure. Cases of reconstruction of houses without Seismic proof were also noticed. Further subsidy of Rs.9.83 crore was sanctioned to 121 industrial units in violation of norms. (Audit Report (Civil) Gujrat 2001-2002)
 
Even in the Tsunami, "In Tamil Nadu, a relief amount of Rs.6.38 crore for Tsunami affected was irregularly disbursed for 3330 unregistered catamarans in four districts," the CAG report revealed.[ii]
 
In Maharashtra,[iii] Rs.4.39 crore  were paid in death cases without using norms in the floods over the 2005 and 2006 monsoons.[iv]
 
In the 2006 floods in Mumbai alone, of the Rs.1200 crore sanctioned for flood relief, following, Rs.700 crore is said to have been wastefully spent.
Gratuitous relief assistance worth Rs.35.65 crore was given without identification and verification of the beneficiaries. There were also cases of relief assistance worth Rs.16.14 crore being given, both in cash and kind, without proper verification of eligibility. [v]
 
Even though we may not agree with all the norms set up by the bureacracy, the above examples clearly indicate that mis-utlisation of funds is the norm. Whenever there was a plea to “coordinate” relief efforts, between the various agencies of the government, NGOs, Corporates. The collectorate has responded by trying to control the work of NGOs, issuing guidelines, or creating Memorandum of Understanding (MOUs), transparency norms, monitoring committees etc.  While these steps are generally welcome, we do not see such moves for regulating accounting procedures which govern large scale transfer of relief funds for other purposes. 
 
In terms of Coordination between NGOs, private agencies, and other actors like religious bodies, corporates, instead of controlling the private efforts and working out a kind of “license Raj” as was seen in the case of allotting housing projects, the government would do well to ensure an open information system on the villages and ward wise situation, relief needed and provided.  This could be a database which provides names of beneficiaries for bigger items like housing sites, houses, boats, de-salination works, etc. should be provided with names of beneficiaries on a real time basis. This will ensure transparency and private agencies would be able to decide where relief is required or not.
   
Another problem with the norms is that local power brokers including MLAs of ruling parties try to control the resources that are coming in from the State.  In fact many private NGOs too have been pressured by these elements to distribute the relief according to their dictates.
 
Therefore the only method is to rely on the local governance structures like the Panchayats, and traditional community leadership. It is not that these local systems are without fault. These structures too tend to favor existing privileged sections.  Caste based and gender based discrimination would also be evident. 
 
However these are the structures which are more accessible by the weaker sections and over time since the governance structure is more proximate, change is possible. This decentralized structure combined with a common information system which informs all concerned about schemes, beneficiaries as well as account in a pro-active manner, will go a long way to correct the mis-utilization, at least at the local level.
Therefore, it is necessary to formulate norms that can ensure that no discrimination is made based on caste, sex, class and race. This can be achieved through
·        Allowing people to take part in the process of relief and rehabilitation.
·        Making norms more transparent
·        Decentralizing the procedure for distribution of relief and long term rehabilitation.
·        Setting up information centers
·        Discussion and setting up of norms at the local level.
·        Community based disaster preparedness.

[i] Everybody Loves a Good Calamity by Himanshu Upadhyaya. India Together, 12 July 2007 [L.Y03.eldoc1/y03_/12jul07it1.html] 

[ii] CAG Finds Flaws in Tsunami Relief, The Deccan Herald , 16 December 2006 [C.Y00.eldoc1/y00_/16dec06dch1.pdf]

[iii] ,[v] Maharashtra Miss-spent Millions In Flood Relief: CAG report, www.ndtv.com, 25 July 2007, www.centralchronicle.com, 22 July 2007 [L.Y01.eldoc1/y01_/25jul07inf1.html]   

[iv] Disaster Mis Management, The Times of India,  Mumbai, 18 April, 2007. [C.Y01.eldoc1/y01_/18apr07toi1.pdf]