The recent reports by the Comptroller and Auditor General (CAG) on the Goa Industrial Development Corporation (GIDC) have exposed serious irregularities that call for scrutiny and accountability. The reports highlighted financial mismanagement, questionable contractual practices, and administrative lapses that raise concerns over processes, transparency and the future trajectory of industrial development in the State.
One of the CAG reports mentions that GIDC failed to recover its operational costs, resulting in consistent losses. Despite the corporation’s mandate to be financially self-sufficient through fees, rents, and charges, it has waived transfer fees amounting to a whopping Rs 16.98 crore over the past three years. The reasoning that waivers facilitate the acquisition of sick units and attract investments is questionable when viewed against the backdrop of mounting financial losses, and such decisions compromise the long-term financial health of GIDC. Moreover, the absence of a sound financial plan to align revenues with expenses is alarming. The government must establish clear financial governance frameworks that include robust revenue models to prevent deficits.
Secondly, the CAG has red-flagged the irregular engagement of M/s INET Computer Services for supplying contractual workers. Despite INET quoting higher wages and not being the lowest bidder, the GIDC extended its contract multiple times, culminating in payments exceeding Rs 7.80 crore over four years. This again clouds transparency because the option of competitive bidding was not followed. GIDC needs to explain its nod to a higher bidder and what prompted it to overlook cost-efficiency. Overlooking a lower bidder suggests that the process is compromised. Such practices undermine the principles of fair procurement and waste public funds. Furthermore, it is baffling as to how these lapses missed the scrutiny of internal audits.
Thirdly, the CAG has exposed administrative deficiencies, pointing out that there is a persistent absence of government Directors at board meetings, besides the participation of Directors with potential conflicts of interest. The fact that government nominees such as the Finance Secretary and Industries Secretary missed over 80% of meetings reflects a lack of seriousness by the government. These officers are part of crucial decision-making where inputs are required on issues of plot allotment, lease rates, and budget approvals. It is surprising how directors representing associations like GCCI and GSIA, who have personal or vested interests in plot allotments and regulations, are allowed to participate in decisions that can benefit them directly. This conflict of interest muddies integrity and erodes stakeholder trust. There has to be fair play and a level playing field. GIDC must enforce mandatory attendance of government directors and identify the conflict-of-interest areas before decisions are taken.
The GIDC cannot live in denial; rather, the CAG reports should be a wake-up call. The government should conduct a comprehensive review of GIDC’s financial policies, including the financial waivers given. In the absence of transparency and fiscal discipline, this key industrial body could find itself in a difficult spot. There should be a mechanism for stakeholder engagement, including civil society and industry representatives, to monitor GIDC’s functioning and ensure decisions serve the broader public interest.
The CAG’s reports lay bare not only systemic flaws within GIDC but have exposed factors that threaten the financial sustainability of the corporation, factors that will undermine confidence in Goa’s industrial development efforts. Urgent, transparent, and accountable reforms are essential to steer GIDC so that it genuinely catalyses industrial growth.
