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Performance
Civil

Report No. 40 of 2015 - Performance Audit on Medical Education Projects of Employees State Insurance Corporation Union Government, Ministry of Labour and Employment

Date on which Report Tabled:
Fri 18 Dec, 2015
Date of sending the report to Government
Government Type
Union
Union Department
Civil
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Sector -

Overview

Employees State Insurance Scheme is a multidimensional Social Security Scheme mandated to provide both cash compensation and medical benefits against a single contribution in certain contingencies. The scheme is operated by Employees’ State Insurance Corporation (ESIC) established under the Employees’ State Insurance Act, 1948 (the Act) jointly with the State Governments. With a view to improve the quality of medical care, the Act was amended in May 2010 to provide for the establishment of medical colleges, nursing colleges and training institutes for its para-medical staff and other employees (Section 59 B was added). ESIC is under administrative control of Ministry of Labour and Employment, Government of India.

Important findings of the Special Audit of Medical Education Projects of ESIC are given below:

  • The Corporation had sanctioned 17 out of 21 Medical Education Projects and started the construction of 16 medical colleges and incurred an expenditure of Rs. 1021.72 crore prior to the amendment of the Act. (Para 2.2)
  • The feasibility study for selection of sites/locations conducted by the consultant was not comprehensive and the selection of sites by ESIC for construction of Medical Education Projects was also arbitrary and not based on norms. (Para 2.3)
  • Award of different works to different architectural and engineering consultants was carried out in an arbitrary manner. Further as per CVC directives the consultants fees should be pegged to the original contract value payable. Due to non-inclusion of this clause in six out of 21 agreements, ESIC was liable to pay extra consultancy fees of Rs. 24.68 crore. (Para 2.4)
  • Due diligence to ascertain the number of colleges required to be opened, to fulfill the future requirement of doctors and other paramedical staff was not carried out. (Para 2.6)

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