MMC’s cheque bounces, chairperson orders inquiry

Cheque issued for Rs 47,000 when there is only Rs 18,000 in the account; councillors says it is just a technical error

VASCO: Records obtained recently from Mormugao Municipal Council’s (MMC) accounts department state that the council has a little under Rs 6.5 crore deposited in four accounts. Strangely, the council is now a defaulter as a cheque of Rs 47,000 issued to a contractor bounced due to a lack of adequate funds.
The accounts department had issued the cheque to sub-contractor Francis Costa for supplying labourers to the municipality. Once the cheque bounced, Costa put his contract on hold and confronted MMC officials in their office.
“I received the payment by cheque, which I deposited in my account with South Indian Bank. I got a shock after I was told by a bank official that the cheque bounced due to insufficient funds. I again verified with the bank and was told that MMC’s account had only Rs 18,000 in it,” said Costa.
The MMC officials and councillors were left red-faced, and will be even more so once the councillors from the opposition camp grill them at the council meeting on May 19. 
“I am shocked to hear the news. Technically all those councillors who are controlling the affairs of the municipality should be held responsible for the embarrassment caused to all. Also, such a thing is not a small issue. We demand an inquiry against the person who let this grave mistake happen,” said MMC opposition leader Neny D’Souza. 
While unhappy about the incident, the ruling camp sought to save face by stating that the issue was blown out of proportion. Vasco councillor Krishna Salkar said, “It’s a fact that there is some technical error, but that does not mean that the council has no money. I feel some people with vested interests are deliberately blowing this issue out of proportion as the council is facing election in a few months.”
Meanwhile, MMC Chairperson Lavina D’Souza asked the municipality to conduct an inquiry in the incident. “There are different theories coming out. It was told to me that the person handling all the payment-related issues was on leave, and so it escaped attention and the cheque bounced.

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