India plans to spend about Rs. 500 billion each year on labor work executed by panchayats, as part of National Rural Employment Guarantee Act (NREGA). The NREGA act provides for checks and balances aimed at preventing corruption, and benefiting rural economy. The act calls for public inspection of works, accounts such as muster rolls, and requires follow-up action from district administration.

Recently, AID-India conducted on-site audits of projects under NREGA, in Gumma and Gosani blocks, Gajapati district, Orissa. In Badakolakote village, a stone bund to prevent soil erosion is being built on a 4000-foot hillock, at Rs. 300,000. We learnt that wages worth Rs. 150,000 were still not paid to the villagers, despite several attempts made by the Sarpanch, Secretary and Executive Officer to the Block Office. We caught a similar discrepancy in neighboring Latur Gadgada, for a road construction project. In a spontaneous audit of the ongoing cement road construction in Badakolakote, we found that muster rolls were not available on-site and notebooks were used instead, both of which violated NREGA Operational Guidelines. Among other irregularities, we found that attendance dates in muster rolls and notebooks did not tally, and the panchayat held workers' job cards for several months.

We made important audit recommendations - providing training on using muster rolls, awareness on NREGA compliance, including handing over responsibility of the job cards to the workers. A similar audit recommendation in Uppalada village, led to a full governmental investigation. By using NREGA, our society holds great potential for ensuring justice in livelihood.

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AID Orissa team