oa Tourism Development Corporation (GTDC) points out that it is one of India’s leading tourism Corporations, which functions systematically and professionally using experts, technology and that it has recorded good financial performance for six years in a row.
A clarification issued by D. B. Sawant, General Manager – Finance, says, GTDC does not burden the government for finances. Most of the new tourism initiatives introduced by the GTDC have come with no financial implications either to the government or the Corporation.
He says the GTDC has in the recent past taken healthy steps, which includes downsizing the employee strength, introducing new tourism services, building infrastructure and that it has been recognised with awards on a national platform.
With regards to Mutation of Properties – negligence
The Tourism Department, Government of Goa has from time to time, transferred properties to Goa Tourism Development Corporation Limited. The transfers were effected by virtue of Gazette notification without any additional documents such as land acquisition award, land acquisition plan etc which are required for the mutation. After lot of efforts, GTDC has managed to get the documents from the Tourism Department, Department of Land Survey, Office of the Collector/ Mamlatdar, PWD, among others, to complete the process of mutation. It is to be noted that there is no encroachment on any land after the same has been transferred to GTDC.
In case any encroachment is found the same is being cleared by deputing the personnel to demolish the encroachment. GTDC does not agree with the observation of the Auditor even though explanations on the mentioned issues were presented to the Auditors.
As on date out of 32 properties, 15 have been mutated in name of GTDC and work for balance 17 properties, which are in the name of Government of Goa, is in progress and the same is expected to be completed in due course of time.
With regards to bills of Rs 9 crore not accounted for
Bills totalling to Rs 9 crore with respect to infrastructure works carried out by GTDC (SPV) were not accounted during the year 2017-18 as the funds were not received from the government during the year 2017-18. The bills have been accounted in the subsequent year 2018-19 after receipt of funds. Government accounting system works on cash basis whereas GTDC being a company under Companies Act work on accrual basis.
It may be noted that the works are undertaken by GTDC on behalf of the government and the bills are paid from the release of funds by the government from the provision made in the budget during the financial year.
This fact has been disclosed by GTDC in the Annual Report of 2017-18 in the ‘Notes to Account’, hence GTDC does not agree with the observation of the Auditor even though explanations on the mentioned issues were presented to the Auditors. In future too, GTDC will follow the current system as they believe the auditor’s assessment is incorrect.
With regards to GTDC’s hotel software mismanaged
Audit has failed to understand the working of hospitality industry and dynamic pricing mechanism which exist in all hotels, both private and government. Tariff amounts appearing in the hotel management software can be revised/altered only with the approval of the competent authority. The feature to revise/alter the rate does not lie with the employees and that the right is reserved in the Head Office. Powers have been delegated to category of officers to offer concession/discount.
The Managers are being given powers to give discount to the extent of 10 per cent to 1 per cent. Incase, of more discounts, the matter has to be approved from Head Office by the competent authority and accordingly the concession is being billed to the customers. There is a proper system is in progress, hence GTDC does not agree with the observation of the Auditor even though explanations on the mentioned issues were presented to the Auditors.
It is pertinent to note that GTDC has made consecutive profits for last six years (see table).
