Hyderabad: The Comptroller and Auditor General flagged Telangana PSU irregularities, citing widespread losses, weak governance, and audit failures across public sector undertakings.
The audit found that out of 83 PSUs, 16 were defunct or under liquidation. Among the remaining 67 entities, 49 failed to submit annual accounts on time. The Telangana PSU irregularities were evident in financial performance as well.
Of the 18 audited entities, only six reported profits, while 11 incurred heavy losses. These losses eroded the net worth of nine firms.
The combined net worth of PSUs fell sharply to Rs.50,930 crore. This was against a government investment of Rs.98,572 crore, highlighting the scale of Telangana PSU irregularities.
Telangana PSU irregularities expose Singareni audit lapses
A special audit of Singareni Collieries Company Limited revealed major contract flaws. These led to excess expenditure of Rs.2,251 crore.
The report also cited additional losses caused by regulatory failures and transport irregularities. The Telangana PSU irregularities extended to environmental compliance as well.
The audit noted that Singareni failed to comply with environmental norms. It did not establish required effluent treatment plants.
The report pointed to serious corporate governance deficiencies. Out of 15 organisations reviewed, nine lacked independent directors.
Moreover, none of these entities conducted Board of Directors meetings. Five organisations did not have audit committees, while nine lacked a Nomination and Remuneration Committee.
The Telangana PSU irregularities reflected systemic governance failures. These included weak oversight and non-compliance with statutory requirements.
The audit recommended immediate corrective steps. It said the state must review the performance of loss-making entities.
It also directed that pending annual accounts be finalised without delay. Additionally, it called for stricter contract regulations to prevent loopholes and financial losses.