SER-1/D/CDR/LOK SABHA COVER FOLDER\PAC COVER HINDI AND ENGLISH \ 1779LS PARLIAMENTARY PUBLICATIONS CAN ALSO BE OBTAINED FROM THE FOLLOWING AUTHORISED AGENTS:— Sl.No. Name of Agent Sl.No. Name of Agent ANDHRA PRADESH 13. M/s. Jayna Book Depot, Chowk 115 Chhapparwala, Bank Street, Karol 1. M/s. Ashok Book Centre, Benz Bagh, New Delhi-110 005. Circle, Vasavya Nagar, PERFORMANCE AUDIT OF EMPLOYEES Vijaywada-520 006 (AP). 14. M/s. Standard Book Co., 125, Municipal Market, Connaught Place, BIHAR P.B. No. 708, New Delhi-110 001. STATE INSURANCE CORPORATION AND (T. No. 23411919) 2. M/s. Progressive Book Centre, Zila SPECIAL AUDIT OF MEDICAL EDUCATION School, Pani Tanki Chowk, Ramna, 15. M/s. D.K. Agencies (P) Ltd., A/15-17, Muzaffarpur-842 002. (Bihar). Mohan Garden, Najafgarh Road, PROJECTS OF ESIC New Delhi-110 059. DELHI [Action Taken by the Government on the Observations/ 16. M/s. Vijay Book Service, C-D/123/C, 3. M/s. Jain Book Agency, C-9, Prem Pitam Pura, New Delhi-110 034. 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NEW DELHI ONE HUNDRED AND FIFTEENTH REPORT PUBLIC ACCOUNTS COMMITTEE (2018-2019) (SIXTEENTH LOK SABHA) PERFORMANCE AUDIT OF EMPLOYEES STATE INSURANCE CORPORATION AND SPECIAL AUDIT OF MEDICAL EDUCATION PROJECTS OF ESIC [Action Taken by the Government on the Observations/ Recommendations of the Committee contained in their Sixty-Seventh Report (16th Lok Sabha)] MINISTRY OF LABOUR AND EMPLOYMENT Presented to Lok Sabha on 14.12.2018 Laid in Rajya Sabha on 14.12.2018 LOK SABHA SECRETARIAT NEW DELHI December, 2018/Agrahayana, 1940 (Saka) PAC No. 2154 Price: `110 .00 © 2019 BY L OK S ABHA S ECRETARIAT Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Fifteenth Edition) and printed by the Manager, Government of India Press, Minto Road, New Delhi-110 002. CONTENTS PAGE COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2018-19) .............................. (iii) INTRODUCTION ..................................................................................................... (v) CHAPTER I Report ....................................................................................... 1 CHAPTER II Observations/Recommendations which have been accepted by the Government ................................................................... 25 CHAPTER III Observations/Recommendations which the Committee do not desire to pursue in view of the replies received from the Government .............................................................................. 52 CHAPTER IV Observations/Recommendations in respect of which replies of the Government have not been accepted by the Committee and which require reiteration .................................. 53 CHAPTER V Observations/Recommendations in respect of which the Government have furnished interim replies ............................. 61 APPENDICES I. Minutes of the Twentieth Sitting of the Public Accounts Committee (2018-19) held on 5th December, 2018 ................. 76 II. Analysis of the Action Taken by the Government on the Observations/Recommendations of the Public Accounts Committee contained in their Sixty-Seventh Report (Sixteenth Lok Sabha) ............................................................ 79 COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2018-19) Shri Mallikarjun Kharge—Chairperson MEMBERS Lok Sabha 2. Shri Subhash Chandra Baheria 3. Shri Sudip Bandyopadhyay 4. Shri Prem Singh Chandumajra 5. Shri Gajanan Chandrakant Kirtikar 6. Shri Bhartruhari Mahtab 7. Smt. Riti Pathak 8. Dr. Ramesh Pokhriyal “Nishank” 9. Shri Janardan Singh Sigriwal 10. Shri Abhishek Singh 11. Shri Gopal Shetty 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar Chanabasappa Udasi 15. Dr. Ponnusamy Venugopal Rajya Sabha 16. Prof. M.V. Rajeev Gowda 17. Shri Bhubaneswar Kalita 18. Shri Shwait Malik 19. Shri Narayan Lal Panchariya 20. Shri Sukhendu Sekhar Roy 21. Shri C.M. Ramesh 22. Shri Bhupender Yadav SECRETARIAT 1. Shri A.K. Singh — Additional Secretary 2. Shri T. Jayakumar — Director 3. Smt. Bharti S. Tuteja — Deputy Secretary 4. Smt. Malvika Mehta — Committee Officer (iii) INTRODUCTION I, the Chairperson, Public Accounts Committee (2018-19), having been authorised by the Committee, do present this One Hundred and Fifteenth Report (Sixteenth Lok Sabha) on Action Taken by the Government on the Observations/Recommendations of the Committee contained in their Sixty-seventh Report (Sixteenth Lok Sabha) on ‘Performance Audit of Employees’ State Insurance Corporation and Special Audit of Medical Education Projects of ESIC’ relating to the Ministry of Labour and Employment. 2. The Sixty-seventh Report was presented to Lok Sabha/laid in Rajya Sabha on 30 March, 2017. Replies of the Government to the Observations/Recommendations contained in the Report were received on 3rd July, 2018. The Public Accounts Committee considered and adopted the One Hundred and Fifteenth report at their sitting held on 5th December, 2018. Minutes of the Sitting are given at Appendix-I. 3. For facility of reference and convenience, the Observations and Recommendations of the Committee have been printed in bold in the body of the Report. 4. The Committee place on record their appreciation of the assistance rendered to them in the matter by the Office of the Comptroller and Auditor General of India. 5. An Analysis of the Action Taken by the Government on the Observations/ Recommendations contained in the Sixty-seventh Report (Sixteenth Lok Sabha) is given at Appendix-II. NEW DELHI; MALLIKARJUN KHARGE, 12 December, 2018 Chairperson, 21 Agrahayana, 1940 (Saka) Public Accounts Committee. (v) CHAPTER I REPORT This Report of the Public Accounts Committee deals with action taken by the Government on the Observations/Recommendations of the Committee contained in their Sixty-seventh Report (Sixteenth Lok Sabha) on "Performance Audit of Employees State Insurance Corporation and Special Audit of Medical Education Projects of ESIC" based on two Audit reports viz. Report No. 30 of 2014 regarding Performance Audit of Employees' State Insurance Corporation and Report No. 40 of 2015 pertaining to Special Audit of Medical Education Projects of ESIC. 2. The Sixty-seventh Report (Sixteenth Lok Sabha) was presented to the Parliament on 31.03.2017. It contained twenty four Observations/Recommendations. Action Taken Notes have been received from the Ministry of Labour and Employment in respect of all the Observations/Recommendations and are broadly categorised as follows:— (i) Observations/Recommendations which have been accepted by the Government: Recommendation Para Nos. 1 to 5, 7, 9 and 12 to 22 Total: 18 Chapter II (ii) Observations/Recommendations which the Committee do not desire to pursue in view of the replies received from the Government: -NIL- Total: Nil Chapter III (iii) Observations/Recommendations in respect of which replies of the Government have not been accepted by the Committee and which require reiteration: Recommendation Para Nos. 8, 10, 11 and 23 Total: 04 Chapter IV (iv) Observations/Recommendations in respect of which the Government have furnished interim replies: Recommendation Para Nos. 6 and 24 Total: 02 Chapter V 2 3. The detailed examination of the subject by the Committee had revealed serious lacunae in the functioning of ESIC such as outstanding dues on account of contribution from covered establishments, irregular availing of medical benefits from ESIC dispensaries/hospitals without paying contribution, shortfalls in number of meetings of Standing Committee, Medical Benefit Council, Regional Boards and Hospital Development Committees, shortfalls in conducting