A suspected misappropriation of Rs 38 lakh under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) came to light in Kandhamal district. The incident prompted disciplinary action against officials and recommendations for further suspensions.

The alleged irregularities were detected in pond excavation work carried out under MGNREGA in Dharakote panchayat of Kotagarh block. Following an inquiry, the district administration suspended two officials and initiated action against others allegedly linked to the case.

Inquiry Leads To Disciplinary Action

The matter was investigated by Kandhamal Chief Development Officer Shambhunath Nandi after reports of possible financial irregularities surfaced in the panchayat.

Based on the findings of the inquiry, Kandhamal Collector Vedbhusan suspended Panchayat Executive Officer (PEO) Sutanya Mahakud and Assistant Development Officer (ADO) Kanshiram Digal of Kotagarh block.

The Collector also recommended to the state government that disciplinary action, including suspension, be taken against Assistant Engineer Prashant Kumar Patra and Junior Engineer Prafulla Kumar Behera.

Officials said the alleged fraud involved pond excavation works undertaken under the rural employment scheme.

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Recovery Of Misappropriated Funds Planned

The district administration indicated that efforts will be made to recover the amount allegedly misappropriated through the preparation of false bills.

Explaining the findings of the investigation, Chief Development Officer Shambhunath Nandi said, “We received information from reliable sources regarding possible misappropriation of MGNREGA funds in Dharakote panchayat under Kotagarh block. The matter was verified initially and subsequently examined again at the BDO level. During another verification conducted by me in connection with other projects, it was established that nearly Rs 38 lakh had been misappropriated. Following this, the matter was brought to the notice of the Collector, and under his directions, the PEO and ADO were suspended. Action will also be taken against others found to be involved in the misappropriation. We have informed the state government and recommended suspension of the AE and JE concerned.”

Further investigation into the alleged irregularities is underway.