Wayanad, Kerala: A large-scale embezzlement under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has come to light in Thondernad Grama Panchayat in the district, with allegations that the investigation is dragging despite the apparent scale of the corruption.

Though early reports suggested that this could be one of the largest scams in the state’s job guarantee programme, the pace of the probe has been called into question. A key accused, contract engineer Jojo Johny, who was named as the primary accused in the police FIR, is yet to be located.

It is reported that he may have fled the country, but investigators have so far remained tight-lipped about his whereabouts or any concrete leads.

A special investigation team led by the district police chief is probing the matter. The team visited Thondernad Panchayat and began reviewing records related to MGNREGS spending.

Separately, a 20-member departmental team led by the Joint Programme Coordinator of the job guarantee scheme was constituted to conduct a departmental probe. The district collector had ordered this team to submit its report within 30 days, and the police are reportedly awaiting this report to assess the full scale of the financial misconduct, which is suspected to run into crores of rupees.

Substandard assets, ghost projects 

During on-site inspections across multiple wards, many recipients reportedly told investigators that the quality of materials was far below the estimated cost, and in some cases, the facilities were not used at all, instead being repurposed for drying clothes or storing firewood.

Additionally, very few beneficiaries were found to be using the shelters for actual livestock rearing, which was supposed to be the objective. In several cases, officials noted that the shelters had become overgrown or abandoned. Complaints also emerged that funds were disbursed in the name of projects that were never implemented.

The police’s preliminary report makes specific reference to financial misappropriation linked to projects that were never carried out, as well as funds for the construction of wells. Further vigilance-level investigations may be required to uncover the full extent of the fraud.

Possible repayment and legal loopholes

There is growing speculation that some beneficiaries may be asked to repay funds obtained under non-implemented projects. Due to the fact that the MGNREGS department handled the selection of beneficiaries and implementation directly, Panchayat members washed their hands of all responsibility in the matter.

Some ward members told officers that the projects were not brought before the board or discussed formally, and that all details were handled by the implementing officials alone.

Had the ward members been actively involved in selecting beneficiaries and overseeing distribution, particularly in verifying the number and quality of shelters per ward, the risk of fraud might have been reduced, it was observed. The MGNREGS department of Thondernad panchayat had directly procured applications from beneficiaries before approving said projects.

In contrast to asset creation projects, other MGNREGS tasks, such as farm labour support, require a ward member’s signature certification at various stages, including a beneficiary’s application and a farmer’s acknowledgement of completed work. According to regulations, no job guarantee work can proceed in any ward without the knowledge and endorsement of the respective member. If any discrepancies are found in the affidavit submitted by the farmers upon completion of the project, the allotted fund can also be recovered.

The final approval and validation of MGNREGS project funds is the responsibility of the concerned secretary. Authorities suspect that digital signatures may have been misused by certain individuals to execute the fraud. However, no departmental inquiry into this specific allegation has been launched so far.