The LDF government in Kerala has consistently highlighted the distribution of social security pensions (SSPs) to over 60 lakh beneficiaries as one of its major achievements. However, the recent report from the Comptroller and Auditor General (CAG) on Direct Benefit Transfers of SSPs has revealed a concerning issue. According to the CAG, nearly half of these payments, specifically the direct payments made to beneficiaries’ homes through agents of Primary Agricultural Credit Societies (PACS), are vulnerable to fraud.
This report, presented in the Assembly, covers the audit period from 2017-18 to 2020-21, during which a total of Rs 29,622.67 crore was disbursed as SSPs under various categories. Of this amount, Rs 15,312.33 crore (51.69 percent) was directly transferred to beneficiaries’ bank accounts, while Rs 14,310.34 crore (48.31 percent) was paid in cash by PACS agents at the beneficiaries’ doorsteps.
The CAG report raised concerns about the “direct to home” (DTH) mode of payment, where only the signature or thumb impression of the beneficiaries was obtained as acknowledgement by the PACS agents, potentially leaving room for fraud. In one instance in Varkala Municipality, pensions were recorded as paid after the beneficiaries had passed away, resulting in irregular payments totaling Rs one lakh.
Further investigation revealed discrepancies in signatures and thumb impressions for the same beneficiary, suggesting fraudulent activity, with most of the funds remitted by the same person. Recognizing the susceptibility of the DTH mode to corruption, Varkala Municipality conducted its own audit, uncovering 38 cases where SSPs were paid to deceased individuals.
The CAG report emphasized that payments made through the DTH mode did not adhere to the principles of Direct Benefit Transfer (DBT) as outlined in Rule 87 of General Financial Rules, 2017. DBT mandates direct transfers to beneficiaries and urges the reduction of intermediary levels to minimize pilferage and duplication.
Additionally, the report recommended that PACS should report cases of deceased beneficiaries to the relevant local bodies. Despite this recommendation, some local bodies continued to transfer funds to PACS for beneficiaries who had been reported as deceased, raising concerns about potential fraud and misappropriation.
In summary, the CAG report highlights significant vulnerabilities in the distribution of SSPs in Kerala, particularly in the DTH mode, and underscores the need for greater transparency and accountability in the process to safeguard against fraud and misallocation of funds.
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