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2 more special auditors get the boot

Renni Abraham

The state co-operative department has suspended two more special auditors attached to the Nagpur and Osmanabad district central co-operative banks for having failed to detect the huge government securities transactions indulged in by these banks without having received the physical delivery of the same.

A senior government official said: "The special auditor (class I) , R Tayade, deputed to the Wardha DCCB was suspended earlier this week. These two auditors S Aswar and LN Pawar were attached to the Nagpur and Osmanabad DCCBs respectively."

Earlier the state co-operative department had sought explanations from all state-appointed auditors to the co-operative banks seeking to know how they accounted themselves for having had failed to detect the banks' transactions in gilt stocks.

The official pointed out that in the case of DCCBs, the audit is of a continuous and concurrent nature with the auditor required to keep a tab on the transactions indulged in by the banks on daily basis.

"Despite the C&C audit mechanism being present, the report was not submitted to the Nabard for over six to seven months in the case of the NDCCB and similar was found to be the case with the Osmanabad and Wardha DCCBs. The suspensions have been ordered in the wake of Chief Minister Vilasrao Deshmukh's insistence that action would be initiated against guilty persons for failure of omissions and commissions which resulted in the scam," he added.

The official pointed out that while explanations had been sought from the auditors of the four other Urban Development Banks that had similarly flouted RBI guidelines while effecting transactions in government securities through brokers, in the case of these banks the audit reports are required to be submitted on a half yearly or annual basis which might make taking action against them slightly difficult.

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