Keonjhar/Hatadihi: The state Planning and Convergence department has sought a report pertaining to alleged irregularities in the District Mineral Foundation (DMF) funds in Keonjhar district. The allegations include advance salary payments to Project Management Unit (PMU) staff hired by E&Y LLP, absence of required documentation, attendance registers, absentee statements and unauthorised increase in staff strength. Allegations were levelled on these issues August 23, 2024. The matter came to the fore in reply to a query obtained under Right to Information (RTI) Act in DMF letter (No. 2250/9) dated October 2024.
Following the allegations, the state Planning and Convergence department issued a letter dated January 15, 2025, to Keonjhar Collector and DMF chairperson, directing them to submit a detailed report. According to the complaint, Keonjhar DMF had engaged Gurgaon-based firm E&Y LLP in 2017 under a three-year agreement to operate as the PMU.
In a meeting held June 13, 2019, the DMF executive committee deemed the PMU’s performance satisfactory and directed for an increase in staff strength and their salaries. However, this action reportedly exceeded the committee’s authority under Rule 6 of the Odisha DMF Rules (ODMF), 2015. Subsequently, the same firm renewed its agreement April 7, 2022 and has continued operations till date. The firm also reportedly received an advance payment of `1,70,55,720 which is 10 per cent of the agreement’s value as salaries for employees August 16, 2022. The state Planning and Convergence department has directed immediate submission of a fact-based report to clarify these allegations. The CEO of DMF filed a report September 20, 2024 (via memo No. 2129/25) regarding allegations and related matters.
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According to contractual terms and conditions, an inspection report was submitted, and an advance payment of Rs 1.70 crore was made to the organisation concerned. The investigation report highlights significant points, particularly that the inspection report did not mention an agreement for the advance payment to the organisation. The agreement specifies that 10 per cent of the monthly remuneration will be allocated for an action plan and inspection report, while 90 per cent will be allocated for the monthly progress report, totaling 100 per cent of the remuneration to the organisation. Funds worth Rs 1.70 crore were disbursed to the organisation as advance for employee remuneration from April 7, 2022, to April 6, 2025. It is also mentioned that the monthly remuneration would be adjusted against the advance.
