Secret Service Fund – How is it spent?
The Revenue Departments are given a lot of un-accountable money called Secret Service Funds – the DRI, DGCEI, IT, all Commissionerates have these funds, which is meant to be used for gathering intelligence. You know how the money is used. Here are a few samples
++ Money spent on visits of senior officers, which cannot be accounted for.
++ Dinners and tea (includes alcohol) parties when officers hold meetings
++ Unauthorized travel
++ Unauthorized travel by air of officers who are not entitled to it.
++ Any expense not officially allowed.
++ Miscellaneous expenditure that will not stand the scrutiny of Audit.
Most of the officers who spend this money illegally are honest and sincere and will be appalled at the idea of being corrupt or misusing government funds, but they have no qualms about misusing the Secret Funds. Since these funds are not auditable, they have a feeling that they can use it as they want. It has come to the notice of DDT recently of an instance of a very honest officer of paying for the air ticket of another honest officer out of the Secret funds. Both of them had no feelings of guilt!
But the CAG is not exactly amused!
The CAG’s report to Parliament stated,
Secret Services: Inadequate monitoring
An expenditure of Rs. 15 crore (Revenue Department; Rs. 1.62 crore; Direct Taxes; Rs. 4.52 crore; Indirect taxes; Rs. 8.87 crore) was incurred during the years 2003-06 on ‘secret services’. The expenditure on secret services is to be monitored by the respective Head of the Office through reports submitted by the officer designated for incurring expenditure on secret services. Test check revealed that expenditure had not been monitored and utilisation certificate of secret service expenditure was not sent either to the office of the Accountant General or to the respective Pay and Account Offices as required under the Ministry of Finance, Department of Expenditure, standing orders. The department and the two Boards did not thus exercise any control over the expenditure on secret services.
The Department stated (March 2007) that necessary instructions had been issued to all budgetary authorities under the Department of Revenue, CBEC and CBDT.
The CAG recommended that Strong monitoring mechanism is needed for ensuring control over the functioning of attached/field/subordinate offices.