CAG to audit NRHM scheme in 18 states

After unearthing a Rs 5,754-crore NRHM scam in Uttar Pradesh, the CAG will conduct independent audits of the scheme in 17 other states to ascertain losses to the exchequer, if any.

CAG's decision came after a request was made by the Union health ministry to look into the NRHM spending of all states. "The CAG has agreed to audit NRHM spending of all states through state accountant generals. It will be an annual and independent audit," a ministry official said.

The ministry has written to the states, asking them to cooperate with their respective accountant generals.

The letter, written to all principal secretaries and mission directors, says, "The CAG had been requested by this ministry that annual transaction audits of the NRHM in all the states be conducted from 2011-12. As informed by the office of CAG, all accountant generals have been instructed to incorporate the audit in their regular audit planning process."

It adds, "This audit by the CAG is separate from the statutory audits already being conducted by CA firms appointed annually in your state. You are requested to ensure that all the records requisitioned during the process of audit are made available to the audit teams promptly and that full cooperation is extended to the teams deputed."

The letter asks the states to issue clear guidelines to district and sub-district level units for facilitating CAG's audits. Though there has been several public standoffs between the government and the CAG over turf control, more government departments like the health ministry are willfully choosing to opt for a CAG audit.

"Till now, states carried out a statutory audit through private chartered accountant firms chosen by them besides another concurrent audit. Now, a third audit will be conducted by the CAG, which is necessary since NRHM involves huge funds," a ministry official added.

The NRHM scheme (2005-12) seeks to provide effective healthcare to rural population throughout the country with a special focus on 18 states, which have weak public health indicators and/or weak infrastructure. Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Manipur, Mizoram, Meghalaya, Madhya Pradesh, Nagaland, Odisha, Rajasthan, Sikkim, Tripura, Uttaranchal and Uttar Pradesh come under that category.

Its primary goals are to reduce Infant Mortality Rate (IMR) and Maternal Mortality Ratio (MMR), facilitate universal access to public health services like women's health, child health, water, sanitation and hygiene, immunization, and nutrition. Prevention and control of communicable and non-communicable diseases, including locally endemic diseases, access to integrated comprehensive primary healthcare and population stabilization are its other goals.

The issue of financial irregularities in NRHM funds in UP came to light following the murder of two chief medical officers Dr V K Arya in 2010 and Dr B P Singh last year. Deputy CMO Y S Sachan was also found dead under mysterious circumstances in the district jail in Lucknow.