CAG report finds wasteful expenditure of Rs 2.22 crore in Thalikku Thangam Scheme

CHENNAI: Tamil Nadu government incured an avoidable additional expenditure of Rs 2.22 crore in Thalikku Thangam (marriage assistance) scheme due to faults in adopting the correct gold and foreign exchange rates for the procurement of gold coins.

The Thalikku Thangam scheme implemented by the commissioner of social welfare (CSW) has been providing assistance for marriage/remarriage of women by providing them with eight-gram gold coins per beneficiary.

As per the CAG report, CSW procured these gold coins by an open tender process. In the year 2018-22, the department has purchased 4.29 lakh gold coins for the cost of Rs 1,353 crore through six open tenders.

The report further stated that three out of six tender 2018-19, 2019-20 and 2020-21, the base rate of the gold was higher than the London Bullion Market Association (LBMA). And, in two out of six tenders (from 2019-21), the foreign exchange rate adopted was higher.

“Meanwhile, in 2021-22, the exchange rate quoted was found erroneous, “the report stated.

Subsequently, the report stated that the TN government responded to the gold coin procurements during 2018 to 2021, that the higher rates were adopted for the LBMA and exchange rates as the rates on the day of opening of tender were not reflected in the websites.

However, no reasons were provided for adopting incorrect exchange rates in the purchase during 2021-22 and the reply thus provided by the government was also not accepted by CAG.

“Hence, by observing the violation of tender conditions, adopting incorrect gold and exchange rates resulted in avoidable additional expenditure of Rs 2.22 crore to the government, ” the report clarified.