TDP chief Chandrababu Naidu wrote a letter to AP Governor S Abdul Nazeer, expressing concerns over the suspected violation of the Model Code of Conduct (MCC) and potential irregularities in fund allocation, particularly regarding the adherence to the First In First Out (FIFO) principle under the Centralised Funds Management System (CFMS).
Naidu highlighted that alarming indications are suggesting that the Andhra Pradesh government might be gearing up to allocate substantial funds to a select group of contractors without following the FIFO clearance procedure. He pointed out a similar instance preceding the announcement of the Model Code of Conduct for the Lok Sabha and Assembly elections when significant funds were disbursed to various contractors, while funds earmarked for essential welfare programs remained pending. The ECI has already sanctioned the transfer of funds under Direct Benefit Transfer (DBT) from May 14, 2024, onwards, necessitating the fulfilment of pending commitments.
Additionally, there are outstanding obligations, such as the sanctioning of retirement benefits, provident fund refunds, medical reimbursements for government employees, and pending wages for contract workers due to insufficient funds in the government treasury.
The situation has escalated to the extent that hospitals operating under the Aarogyasri scheme have threatened to halt services to disadvantaged individuals due to unsettled bills. Meanwhile, representatives from the Chamber of Panchayat Raj have staged protests over the diversion of approximately Rs 8000 crores earmarked for finance commission grants. Naidu further raised concerns about unauthorized disbursements totalling Rs 4,000 crore in fresh borrowings and an additional Rs 7,000 crore raised through bonds by APMDC, allegedly intended for payments to favoured contractors and political associates.
In his plea to the Governor, Naidu urged immediate intervention to halt the proposed irregular disbursement of funds to select contractors during the Model Code of Conduct period. He emphasised the critical need to safeguard the state treasury from imminent collapse, urging swift action in the interest of fiscal prudence and governance integrity.
