Yet another scam in UPA regime? CAG unearths misuse of farm loan waive

Discussion in 'Politics & Society' started by sesha_maruthi27, Jan 25, 2013.

  1. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

    Aug 15, 2010
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    Hyderabad, Andhra Pradesh(INDIA)
    Yet another scam in UPA regime? CAG unearths misuse of farm loan waiver scheme

    The United Progressive Alliance(UPA) government's biggest election sop announced ahead of the 2009 Lok Sabha polls had a big impact on the electorate as it saw the coalition back in power for the second successive term.

    However, the scheme that was originally meant to benefit 3.5 crore small and marginal farmers seems to have given birth to yet another swindle under the current regime, which is already tainted because of a series of scams in one department or the other.

    In February 2008, the UPA-1 had announced Rs.52,280 crore farm loan waiver for farmers. The pre-poll trick delivered a second term for the UPA. However, callous ministers as well as corrupt and inefficient government machinery kept farmers entrapped in a vicious debt cycle.

    Headlines Today accessed the final audit report submitted by the Comptroller and Auditor General(CAG) to the government, which has made some shocking revelations.

    "CAG carried out a performance audit to assess whether the debt waiver and relief scheme was implemented in accordance with relevant guidelines and objectives. The audit carried out from April 2011 to March 2012 covered 25 states involving field audit of a total 90,576 farmers' accounts in 715 branches of banks in 92 districts. 13.46 per cent accounts were those who were eligible but were disqualified by the lending institutions. Six per cent of the checked accounts were not extended their rightful benefits. 8.62 per cent were those who were not eligible but still got either complete waiver of debt relief. More than 34 percent farmers were not issued debt waiver certificates thus making them ineligible for future loans. In a large number of cases there was proof of tampering, overwriting and alteration of records. Though the scheme was meant for farmers directly, in many cases the monies were disbursed to micro finance institutions. Also, lending institutions fraudulently claimed amounts related to interest charges. Finance ministry left it to the banks to do self-monitoring. There was no oversight by finance ministry while reimbursing claims," a part of the report reads.

    On paper a national level monitoring committee was announced. However, it failed to carry out its duty. In fact, there was no oversight or monitoring at the level of finance ministry, Reserve Bank of India(RBI) or National Bank for Agriculture and Rural Development(NABARD).

    When the CAG asked for the minutes and the agenda of the meetings, if any, that were held by this high-powered monitoring committee, it drew a blank.

    As per the government records, loans taken by about 3.5 crore farmers were waived off. However, due to constraint of resources, the CAG audited a sample size of less than 1 lakh accounts only. So the findings of the top autonomous audit body could just be the tip of the iceberg.

    How taxpayers' Rs.52,000 crore was spent

    Between 2008 and 2012, India saw two finance ministers- P. Chidambaram under whom the farm loan waiver was first proposed and later implemented and then Pranab Mukherjee under whom the scheme money continued to be disbursed without oversight.

    The CAG says, for five years the government made no effort to carry out an audit or to find out if Rs.52,000 crore of taxpayers' money was spent properly.

    The finance ministry's Department of Financial Services was the apex authority responsible for implementing and overseeing the debt waiver scheme. But with then finance ministers Chidambaram and Mukherjee remaining oblivious of things, the CAG feels that they took it easy.

    Considered by the UPA as its two most efficient ministers, both Chidambaram and Mukherjee have been found guilty of inaction and negligence in seeing that the relief reached the intended beneficiaries.

    Finance ministry's belated action

    The CAG report has now set the government scampering for some face saving measures. Under Chidambaram, who has since returned to bring back the Indian economy back on track, the finance ministry on January 11 shot off a letter to the RBI and the NABARD asking them to take immediate action.

    In its belated damage limitation exercise, the finance ministry has asked the two nodal organisations to ensure:

    (a) recovery of money from ineligible beneficiaries
    (b) fixing of responsibility of bank officials and bank auditors
    (c) registration of FIRs in cases of tampering and forgery
    (d) action under banking regulations against erring banks
    (e) recovery of inadmissible interests claimed by banks
    (f) issuance of debt waiver and debt relief certificates to farmers.

    The finance ministry has finally started taking action on the findings of the CAG, but it seems too little, too late. The CAG has only audited nearly 90,000 accounts out of the total 3.5 crore farmers' accounts.

    The question now rises which agency would now audit the remaining over 3.44 crore accounts and whether the money stolen would ever be recovered.

    Read more at: Yet another scam in UPA regime? CAG unearths misuse of farm loan waiver scheme : North, News - India Today
    A chauhan, parijataka, sob and 3 others like this.
  3. sob

    sob Moderator Moderator

    May 4, 2009
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    New Delhi
    Re: Yet another scam in UPA regime? CAG unearths misuse of farm loan w

    Nothing much will happen in this because politicians of almost all major parties have benefited in a major way.

    This was the most stupid thing to do and all the major banks are suffering to some extent or the other. This whole exercise was designed keeping in mind the elections of 2009, there was never a question of going slow to install checks and balances.

    A better system is followed by MP Govt. where the interest has been waived off, at least the principal is being recovered. It is not the ideal situation but due to the lack of a effective social security blanket for our farmers, at least this is the least that should be done.
  4. parijataka

    parijataka Senior Member Senior Member

    Oct 15, 2011
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    Re: Yet another scam in UPA regime? CAG unearths misuse of farm loan w

    What can we the ordinary citizens of India do about this rape of our country. Congress will sell their mothers to come to power and fool voters will vote them along with all their crooked allies back for some freebies.
  5. sob

    sob Moderator Moderator

    May 4, 2009
    Likes Received:
    New Delhi
    Re: Yet another scam in UPA regime? CAG unearths misuse of farm loan w

    No this wil happen even if the BJP had been in power. This systematic loot is designed with the elections as the target. Everything else is fringe benefits.
  6. GPM

    GPM Tihar Jail Banned

    Mar 5, 2011
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    Re: Yet another scam in UPA regime? CAG unearths misuse of farm loan w

    As per Shinde, people will forget this too. Hahaha.
  7. Ray

    Ray The Chairman Defence Professionals Moderator

    Apr 17, 2009
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    Re: Yet another scam in UPA regime? CAG unearths misuse of farm loan w

    Received on e mail

    A nation of sheep will beget a government of wolves

    Act 1: Let me tell you a story about an old man who lived in a small village somewhere that does not matter. It all began when the man’s sons came to him and told him that some people from the neighboring village had stolen a chicken from their farm. The old man told his sons to go after the thieves and recover the chicken.

    The sons said, “Father, it’s only one chicken. We have hundreds of chicken. One won’t make a difference.” The old man said, “Do what you please.”

    A few days later, the thieves stole a goat. Once again the old man told his sons to not let them get away with it. The sons said that they have dozens of goats and it’s not worth the trouble. The next week it was a horse. Once again the sons rationalized it away saying that they still had six horses that the farm needs.

    Finally, the next week the sons came back to report to the old man and said, “Father, our sister has been abducted. What shall we do?” The old man said, “It’s too late. You should have recovered the chicken. Now there’s nothing you can do.”
    * * *
    Act 2:

    I heard this story from an expat from New Zealand who runs a very successful school in Singapore. David told me that in the early years of Lee Kuan Yew’s government, a minister was suspected of having taken a bribe. People said that since the minister was a close associate of LKY, in all likelihood the man would get away with it.

    But as it happened, LKY had a brief chat with the minister one afternoon. The next day the minister went out with a bang — he put a bullet in his head.

    Singapore is one of the least corrupt nations in the world. LKY’s policy is simple: zero tolerance for corruption. That’s so because he himself is incorruptible and therefore does not tolerate corruption. The wages of public corruption is death. People know it and act accordingly.
    * * *
    Act 3:

    India’s appointed prime minister is Dr Manmohan Singh. Under his watch, the most egregiously blatant instances of public corruption have taken place. His ministers and other office holders have been involved in acts of public malfeasance that are stunningly incredible — but for at least a significant segment of Indian voters, it is quite alright. They appear to take it as if it’s nothing out of the ordinary.The rulers are going about the rape of the land and the people just lay back and supinely accept it.

    We are talking figuratively about rape but Dr Singh’s misgovernance has descended into literal rape. Not just rape, gang rape. Not just gang rape, it has finally hit (one hopes) the rock bottom into murderous gang rape.

    The 23-year old woman who was gang raped in a New Delhi bus died in a hospital in Singapore.
    * * *
    Act 4:
    They first stole a chicken.
    The Congress government under Jawaharlal Nehru was involved in corruption. The news papers reported it. Nehru responded saying that the reporters were being silly since corruption is a global phenomenon and there’s nothing to get all excited about.

    Then they stole a goat.

    Nehru’s daughter nationalized many sectors of the economy, thus making public office attractive to the most criminally corrupt. The people of India did not disapprove.

    They in fact voted her back to power.

    The stage was set for horse thieves.
    * * *
    Act 5:

    Some people started waking up to the reality. They realized that somehow the system was not working. They heard the call from a chosen few and gathered to register their protest. The government followed the time-worn strategy of attack being the best form of defense. They sent in their baton-wielding cops and the crowds — leaders too — beat a hasty retreat.

    The lesson the appointed prime minister Dr Manmohan Singh’s government learned was that it does not take a whole lot to put the people in their place — the place of course being that the people in the government are the rulers and the people are serfs.

    For around a century, a few hundred million Indians were the serfs of a few thousand British. Now it is different. India is under self-rule.

    An Italian, Antonia Maino aka Sonia Gandhi, and her bunch of sycophants led by Digvijaya Singh are ruling about a thousand million Indians.

    Well, perhaps it is not all that different. Though Maino’s father was a fascist. That could make the British Raj 2.0 a little more vicious than the British Raj of pre-1947.
    * * *
    Act 6:

    It tickles me no end when I hear talk about India being a free country and a democracy with universal adult franchise. Every adult has the vote and therefore is in some sense responsible for the kind of government. In my opinion,India is a kakistocracy — government by the most corrupt and the least principled. Indians freely elect these people. And among the elected are criminals who have been charged (and many convicted) of rape and murder.

    The guys who gang raped the unfortunate woman on the bus in New Delhi a few days ago share at least some of the characteristics of the law makers of India: their criminality. A significant numbers of Indians vote for these kinds of criminals.
    * * *
    Act 7:

    I hear that the despicably dishonest appointed prime minister Dr Manmohan Singh’s government moved to shut down protests in New Delhi by closing down a few metro train stations. Perhaps the people will back down and go home.

    If they don’t back down, I suppose the unfathomably dishonest cretin, the appointed prime minister Dr Singh will probably escalate the situation till we see tanks on the streets of New Delhi.

    The sister has been abducted.

    And if I were a betting man, I would place the bet that the people are not going to do anything about it. Come next elections they will vote for Antonia Maino aka Sonia Gandhi and her henchmen.
    * * *
    Act 8:

    Antonia Maino aka Sonia Gandhi and her gang of vile henchmen are unprincipled criminals. But they are not stupid. Their moves are calculated to push the boundaries and they know precisely what they can get away with. They know precisely how much they can steal and yet be elected. They know precisely how many backs they can break with their police lathi-charge and still the people will not lynch them.

    Indians have an amazing capacity for tolerating injustice.

    It was an American, born a slave but who understood the dynamics of slavery, who put it best over a century ago. Frederick Douglass (1818 – 1895), the renowned American abolitionist wrote, “Find out just what people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them . . . The limits of tyrants are prescribed by the endurance of those whom they oppress.”

    The rulers are not unintelligent. They would not be where they are if they were not the most accomplished criminals. They make the laws, don’t you know. They dictate the terms.

    They control the press. The press provides the cover for them and they in turn protect those in the press that do their bidding. The Ghoses, the Sardesais, the Dutts — these are not unimportant players in this sordid play. They are complicit in the figurative rape of India and are handsomely rewarded for their prostitution.
    * * *
    The Final Act

    No doubt for a few days the twitterati will be screaming bloody murder. A few thousand will go on candlelight vigils. In a few weeks, another distraction will occupy the talking heads on TV. Cricket will take over the collective psyche. And of course the sordid stories of Bollywood shakers will move the public to other concerns.

    Talking of journalists, I am reminded of what the legendary American radio broadcaster Edward R Murrow (1908 – 1965) said:

    “A nation of sheep will beget a government of wolves.”

    Yes, India does have a government of wolves because India is a nation of sheep. The tyrants like Dr Singh know well precisely how much oppression the Indian public is willing to endure.

    "The rape of the land and the people — literally and figuratively — will continue."
    parijataka and Raj30 like this.

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