The Comptroller and Auditor General of India (CAG) has detected shortcomings and loopholes in the manner in which social security pensions are distributed in the State, especially the direct-to-home (DTH) mode of disbursement through the primary agricultural credit societies (PACS).
The CAG report on ‘Performance Audit on Direct Benefit Transfer (DBT) of Social Security Pension Schemes’ was tabled in the State Assembly on Thursday.
The CAG report noted that payment by DTH mode through PACS does not qualify as DBT as it is not done directly to beneficiaries and does not minimise intermediary levels. “Further, in respect of DTH disbursements, only the signature/thumb impression of the beneficiaries are obtained as acknowledgement by the agent which is kept in the PACS concerned,’‘ it noted.
Absence of automated beneficiary-wise acknowledgement has resulted in the possibility of fraud. Citing six cases in Varkala municipality, the report noted that pension was paid via DTH mode even after the death of the beneficiary.
DBT, where the money is paid directly into bank accounts, and DTH are the two modes used by the government to disburse the five social security pension schemes — the Indira Gandhi National Old Age Pension, the Indira Gandhi National Widow Pension, Agriculture Labour Pension, Indira Gandhi National Disability pension and the Pension for Unmarried Women above 50 Years.
During the period under audit — 2017-18 to 2020-21 — 50.79% beneficiaries were paid their pension amounts via DBT while 49.21% received it at their homes through PACS.
The report has recommended the State to include more beneficiaries under the DBT umbrella.
Irregular sanction
The report further noted ‘irregular transfer of funds’ to persons reported as deceased, and disbursement of pension to ineligible persons who were suspended from the beneficiary list.
Audit also detected a more serious lapse where social security pensions were ‘irregularly disbursed’ to 9201 service pensioners and government employees. “The total amount thus disbursed as Social Security pensions to these ineligible persons for the three-year-period from 2017-18 to 2019-20 works out to ₹ 39.27 crore,” the report said.
Deficiencies in software
The CAG report noted deficiencies in the Sevana pension software developed by the Information Kerala Mission.
The report observed that it “was not fully effective in improving the accuracy and transparency in the DBT programmes.” The IT system should be revamped to guarantee data integrity and consistency “with all the eligibility criteria of the social security pensions incorporated in it,” it said.
