Aiyar's charges incorrect, says PC

NEW DELHI: Home Minister P Chidambaram has refuted former sports minister Mani Shankar Aiyar’s charge that as finance minister he had ignored Aiyar’s warning of alleged embezzlement of Commonwealth Games funds. Chidambaram cited records to show that the Finance Ministry had promptly responded to clarifications sought by the Ministry of Youth Affairs and Sports and never authorised any deviation from the general finance rules, or GFR.

Reacting to the charge that he overruled Aiyar at a meeting of the group of ministers when Aiyar insisted on observing GFR, Chidambaram cited the minutes of the meeting to say that he had never attended the 12th meeting of the GoM held on November 12, 2007.

"Additional secretary (expenditure) attended the meeting on behalf of the Ministry of Finance," Chidambaram pointed out, adding that the official told the meeting that "the Finance Ministry does not interfere in issue of release against itemised items within the overall budget, provided the parameters are fulfilled to the satisfaction of the Secretary, Department of Youth Affairs and Sports, who is the Chief Financial Officer as per GFR."

On Aiyar’s claim that he had written to the Finance Ministry to directly release the CWG funds instead of the Sports Ministry doing so, Chidambaram recalled that Organising Committee Chairman Suresh Kalmadi had in a letter to the Finance Ministry, dated November 15, 2007, requested release of funds from the sanctioned budget for 2007-08.

"On 16.11.2007, then Finance Minister wrote to Kalmadi informing him that department of expenditure had suitably advised the department of youth affairs and sports to release the balance funds in a phased manner, but insisted that Kalmadi may furnish the utilisation certificates.... A copy of the letter was sent to the Ministry of Youth Affairs and Sports."

Incidentally, on December 5, 2007, Aiyar wrote back to Chidambaram, who was then Finance Minister, thanking him for the guidance on issues of submission of utilisation certificates as per GFR, submission of cash flow statement of income and expenditure by OC. He suggested that the funds be released directly by Finance Ministry to the OC.

The Finance Ministry, on February 18, 2008, clarified that funds may be released on a reasonable satisfaction that they were being rightfully utilised and the administrative ministry may be periodically informed of the progress of expenditure. "It was also clarified that the Finance Ministry could not make direct releases to the OC because it was not permitted by the GFR and the responsibility for the release of funds rested with the administrative ministry.