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CAG slams BSNL, MTNL for not being financially prudent

Written by: Staff
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New Delhi, Mar 17 (UNI) The Government has pulled up state-owned telecom majors BSNL and MTNL for not safeguarding its financial interests and thereby incurring a loss of more than Rs 379 crore in the process.

The Comptroller and Auditor General of India (CAG) said BSNL failed to safeguard its financial interest for the year ending March 2005, by not obtaining appropriate bank guarantees from the international long distance operators.

The report's revenue paragraph based on the results of transaction audit which contains cases of loss/non-recovery/outstanding dues etc amounts to a financial implication of Rs 323.66 crore.

The expenditure paras based on the results of transaction audit brings out infructuous expenditure of Rs 49 crore and avoidable expenditure payment of Rs 6.50 crore.

BSNL delayed disconnection of Point of Interconnection between October 2003 and April 2005 resulting in non-realisation of interconnection charges of Rs 219.62 crore.

The report further said the failure to implement stipulated safeguards resulted in accumulation of outstanding dues of Rs 41.82 crore in seven telecom circles on post-paid mobile telephones.

Also, 28 Secondary Switching Areas (SSAs) under 10 telecom circles failed to realise interest on delayed payments from private operators for the period August 2002 to April 2005 resulting in non-realisation of Rs 18.34 crore.

The report has noted that 11 SSAs under three telecom circles continued to provide telephone services despite non-payment of dues by subscribers and STD/PCO operators resulting in accumulation of dues of Rs 10.39 crore from May 1991 to January 2005.

The company also failed to raise bills for the rentals in respect of telecommunication facilities provided to various subscribers which has resulted in non-billing of Rs 6.06 crore from September 1997 to November 2005.

Also, nine SSAs under the Andhra Pradesh Telecom circle failed to collect interconnect license fees resulting in non-billing of Rs 2.15 crore from August 2003 to March 2006.

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