The State Finance Inspection wing under the State Finance department has uncovered serious violations in the distribution of special adhesive stamps by the Treasury department, following an investigation into a shortage of stamps worth ₹3.6 lakh in Idukki.

The issue came to light in August 2018 when a shortage of 7,200 special adhesive stamps (each valued at ₹50) was reported at the Kattappana sub-treasury. The stamps were reportedly supplied from the Nedumkandam district stamp depot. In the Treasury department’s initial investigation, the findings were inconclusive, prompting the Finance Inspection Wing to launch a detailed probe.

The probe revealed that the stamps went missing from the Kattappana sub-treasury due to negligence by officials. “The inquiry confirmed serious lapses on the part of the officials,” said the probe report, highlighting a financial loss of ₹3.6 lakh to the government.

The report said that two of the three officials who were found responsible for the loss paid ₹90,000 each to the State government. “But one official, K.C. Gopakumar, who was the junior superintendent of Kattappana sub-treasury, refused to pay the amount. The government should take immediate steps to collect the dues from the official,” said the report.

Multiple irregularities

Additionally, the investigation found that district treasury officers failed to enforce storage limits for stamps, as mandated under Treasury Code Rule 154. The report noted, “District treasury officers continued this violation with the tacit support of the State treasury director. State treasury directors’ refusal to comply with government rules is unacceptable.”

Further irregularities were uncovered in the handling of stamps received from the Central stamp depot, with proper counting and verification procedures being routinely ignored before entries were made in the register.

The report further stated that during the retirement or transfer of officers in sub-treasuries, crucial records related to valuable items are often not properly handed over, resulting in discrepancies. “Such practices would result in the loss of the valuable items of the treasuries,” said the report.

The report further recommended that the lack of enforcement of storage limits for stamps in sub-treasuries would lead to financial malpractices in sub-treasuries. “The storage limit for each sub-treasury should be fixed at an emergency level. In addition, a strict directive should require all sub-treasury officers to count the number and value of stamps according to the invoice or indent when receiving them from the district stamp depot.

Sources indicated that Finance Minister K.N. Balagopal has approved the report and endorsed the implementation of the inspection wing’s recommendations.