Many states are talking about its success, some like Madhya Pradesh are even set to launch one on similar lines. But Tamil Nadu chief minister J Jayalalithaa's popular Amma Canteens scheme has been questioned by the the Comptroller and Auditor General (CAG) on the way it is run.
The CAG report, tabled in the state Assembly, focuses on administrative and financial lapses including the purchase of chappati-making machines.
The audit carried out between Feb 2015 and June 2015 says that though 15 chapathi-making machines were purchased to make four lakh rotis every day, nine of them were still unutilised due to repair costing an additional expenditure of 1.33 crores.
Even as the CAG report lauds the scheme which provides the cheapest, hygienic and nutritious food for Rs 5 to Rs 10, it also finds major lapses in the implementation and running.
The CAG report said there was a lack of adequate planning and that no survey was conducted to identify beneficiaries in each area of the city - including daily wage labourers - before setting up Amma Canteens. The scheme initially was targeted at the poor but it’s used by all people, resulting in extra financial burden to scheme-implementing units.
Canteens were set up in existing buildings of Municipal Corporation area without asking for additional funds from the government.
The state government has replied that a survey was conducted and the areas were chosen based on the survey; but the CAG report says the reply is not acceptable as no evidence was submitted.
Secondly, the CAG objected to setting up of canteens without assessing manpower requirement. Amma Canteens till date are managed by existing staff from health, engineering and revenue but as this affected work in these departments, the Municipal Corporation sent a proposal to the state government to form a separate department comprising 111 employees.
Criticising the financial management, the report underlined that the expenditure on Amma Canteens in 2014-2015 crossed Rs.100 crore in Chennai, causing the city corporation's deficit from going up from Rs 303.1 crore to Rs 471 crore that year.
It also pointed out that the state government did not issue guidelines or instructions on financial transactions such as purchase and sales in Amma Canteens. It also found that, due to lack of uniform procedure, municipal corporations adopted varying methods in recording financial transactions of the canteens.
The DMK immediately hit out at the government, with party leader TKS Elangovan saying, "Mismanagement of Amma Canteens has been happening over the last six years. Every CAG report had indicated this, but the state government does not care. There should be a thorough investigation and the culprits should be booked. "
Political observers however say the government auditor should focus on other things than on a scheme that has benefited so many people. "You can point out discrepancies but it’s early days. For instance, chappati machines not working, procurement not being uniform - all can be rectified.
I'd say the CAG can look at other issues like infrastructure projects. Amma Canteen scheme is doing well and as days go by, an accounting system will be in place”, says Radhakrishnan, a political analyst.
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