28 SEP, 2011, 02.13AM IST,
VIKAS DHOOT & DEVIKA BANERJI,ET BUREAU
NEW DELHI: The Planning Commission has raised questions about the administrative structure of the Nandan Nilekani-led Unique Identity Authority of India (UIDAI) and called for the appointment of an independent financial advisor to monitor its finances and transactions, days after the finance ministry rejected the authority's Rs 15,000 crore funding proposal.
"The UIDAI's present system represents a major departure from government procedures and removes all inbuilt checks and balances. We need a relook at the UIDAI's administrative structure," the commission wrote in a letter to the finance ministry in the third week of September.
The commission has pointed out that though the UIDAI was set up as its 'attached office' in January 2009 and derives its budget from the ministry of planning, it has never got to examine any of the authority's financial proposals till date. It says the cabinet and expenditure proposals of the UIDAI need to 'normally be seen' by its secretary and financial advisor.
"But neither the secretary nor the financial advisor is in the loop." In a subsequent letter to the finance ministry, the commission has asked for "a full-time financial advisor" to be placed in the UIDAI tasked with the "responsibility of looking into the authority's financial sanctions and clearances".
It has objected to the decision-making structure in the UIDAI that delegates the powers of a financial advisor to a deputy director-general who is also responsible for the authority's programmes and projects.
Typically, financial advisors of government departments are not entrusted with any discretionary policy-making powers so that they can take a fair and independent view of financial proposals.
ADVISOR HAS MANY RESPONSIBILITIES
But the commission says in this case the financial advisor has a number of responsibilities and prepares memos and cabinet notes for the authority. "This takes away the benefit of an independent scrutiny of proposals by an arms' length financial advisor," says the commission.
An e-mail sent to UIDAI officials seeking their views on the Planning Commission's letters did not elicit a response. The Planning Commission's criticism of the authority's way of functioning represents another setback for the body tasked with implementing one of the most ambitious projects of the UPA government.
Earlier this month, the finance ministry shot down a proposal to sanction Rs 15,000 crore to the authority for extending its biometric enrollment programme. This followed objections raised by the home ministry and the commission, which said the programme should be carried out by the census office that is creating the National Population Register.
The UIDAI has also been panned by the labour and rural development ministries which feel its plans will take too long to materialise. The ministries are working on their own independent biometric solutions. The UIDAI's original mandate was to assign a unique identity number to all Indians.
Now, the authority is also working on a brand new payment infrastructure with micro-ATMs to boost financial inclusion.
"The UIDAI's present system represents a major departure from government procedures and removes all inbuilt checks and balances. We need a relook at the UIDAI's administrative structure," the commission wrote in a letter to the finance ministry in the third week of September.
The commission has pointed out that though the UIDAI was set up as its 'attached office' in January 2009 and derives its budget from the ministry of planning, it has never got to examine any of the authority's financial proposals till date. It says the cabinet and expenditure proposals of the UIDAI need to 'normally be seen' by its secretary and financial advisor.
"But neither the secretary nor the financial advisor is in the loop." In a subsequent letter to the finance ministry, the commission has asked for "a full-time financial advisor" to be placed in the UIDAI tasked with the "responsibility of looking into the authority's financial sanctions and clearances".
It has objected to the decision-making structure in the UIDAI that delegates the powers of a financial advisor to a deputy director-general who is also responsible for the authority's programmes and projects.
Typically, financial advisors of government departments are not entrusted with any discretionary policy-making powers so that they can take a fair and independent view of financial proposals.
ADVISOR HAS MANY RESPONSIBILITIES
But the commission says in this case the financial advisor has a number of responsibilities and prepares memos and cabinet notes for the authority. "This takes away the benefit of an independent scrutiny of proposals by an arms' length financial advisor," says the commission.
An e-mail sent to UIDAI officials seeking their views on the Planning Commission's letters did not elicit a response. The Planning Commission's criticism of the authority's way of functioning represents another setback for the body tasked with implementing one of the most ambitious projects of the UPA government.
Earlier this month, the finance ministry shot down a proposal to sanction Rs 15,000 crore to the authority for extending its biometric enrollment programme. This followed objections raised by the home ministry and the commission, which said the programme should be carried out by the census office that is creating the National Population Register.
The UIDAI has also been panned by the labour and rural development ministries which feel its plans will take too long to materialise. The ministries are working on their own independent biometric solutions. The UIDAI's original mandate was to assign a unique identity number to all Indians.
Now, the authority is also working on a brand new payment infrastructure with micro-ATMs to boost financial inclusion.
