Hatadihi (Keonjhar): Irregularities have come to light in spending of funds under the District Mineral Foundation (DMF) in Keonjhar. Allegations indicate widespread corruption through approvals for various projects. Significant expenses were incurred for a single project, despite trust board meetings not being held in regular intervals. Projects were executed and funds spent without proper trust board approvals.
Records suggest that more than Rs 36 crore has been spent on videography, vehicle rentals, fuel, and other expenditures. Discrepancies between approved projects and fund utilisation have been revealed under the Right to Information (RTI) Act.
According to DMF communication (No. 2559, Nov 16, 2024), the trust board has been convened once in FY2015-16, 2020-21, 2021-22, and 2022-23. In 2016-17, it met twice; thrice in 2017-18; and twice in 2018-19. However, no meeting was held in 2019-20, 2023-24, or 2024-25. As per the DMF Rules, 2015, Clause 4(4), the board is required to meet twice in a financial year. The last one, held November 19, 2022, was the 11th trust board meeting. Since then, nearly two years have passed without another meeting.
From 2016-17 to September 2024, 2,833 projects were approved by the trust board, while 3,280 projects received administrative approval. Of these, 989 projects have been completed, 1,562 are ongoing, and 708 have not been started. Additionally, 21 projects have been cancelled. Notably, the 3rd, 5th, 7th, 8th, and 9th trust board meetings mention the number of projects approved but did not include budgetary allocations. For instance, in the 10th trust board meeting, Project No-207, named “school transformation project”, was approved with an estimated budget of Rs 30 crore.
The absence of trust board meetings has raised questions about the oversight and management of DMF funds. Nearly 300 projects, approved during the 4th, 6th, 7th, 8th, 9th, 10th, and 11th trust board meetings, have received administrative approval, and approximately Rs 800 crore has been spent on those. Additionally, it has been reported that around 190 projects used fake trust board numbers and serial numbers, resulting in the expenditure of significant funds worth several crores.
According to a letter (No. 2375/25, October 2024) from the DMF office, Rs 11,925 crore was collected, of which Rs 5,502 crore has been spent. Out of this, Rs 36.50 crore was used for contingency expenses. The breakdown includes Rs 31.26 lakh for videography, Rs 33.97 lakh for advertisements, Rs 36.21 lakh for vehicle rentals, Rs 14.51 lakh for fuel, Rs 5.89 lakh for travel, Rs 33 lakh for toilets, and Rs 3.38 lakh for miscellaneous expenses that includes spending on tea, as revealed under the RTI Act.
On the other hand, a letter (No. 11258/22, August 2022) from the State Planning and Convergence department highlighted the formation of a 21-member committee for the trust board, which includes public representatives. However, a new committee has not yet been formed since the last general election.
While individual projects have been approved in trust board meetings, many others have received administrative clearance and incurred expenditures. Irregularities related to these processes have been reported to the Chief Minister, Chief Secretary, the Planning and Convergence department, and the Prime Minister’s office.
Regarding allegations of misuse of DMF funds, the Additional Secretary of the Planning and Convergence department, Pradyumna Mahakud, said that the Keonjhar District Collector and the DMF trust board chairperson have been asked to submit a report. However, the report has not been provided yet. As per a letter (No. 18260/17, December 2024) from the State Planning and Convergence department, a reminder has been sent to the DMF trust requesting them to submit the final and detailed report.
PNN
