Corruption
In-Depth Audit Reveals Systematic Mismanagement at Lucknow Golf Club (LGC)
Lucknow: An exhaustive audit conducted by the chartered accounting firm Ram Ratan Gupta & Co. has brought to light severe administrative and financial mismanagement at the Lucknow Golf Club (LGC). The firm’s report, covering the last two fiscal years, documents a series of policy violations and questionable financial decisions that raise concerns about governance and operational integrity at the club.
Policy Non-Compliance and Financial Oversights
The audit report details a troubling pattern of non-compliance with the club’s own purchasing policies. According to the findings, the club failed to follow standard tendering processes and did not obtain the necessary supporting documents for several high-value transactions. This includes significant payments made without clear contracts or proper approval, such as Rs. 3,00,000 for undefined “Social Media Marketing” services and Rs. 1,00,000 to Advocate Kuldeep Narain Mishra without signed bills. Such lapses indicate a lack of transparency and due diligence in financial dealings.
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Overpriced Purchases
The report also points out instances where goods were purchased at prices well above market rates, suggesting either a neglect of competitive pricing or improper financial controls. For example, the club purchased a water tank for Rs. 87,360 and a Li-Ion battery for Rs. 1,17,350, despite both items being available at significantly lower prices in the market. This not only raises questions about the financial prudence of the management but also about the potential for financial waste or misappropriation.
Legal Fees and Irregular Payments
A substantial portion of the club’s expenditure has been directed towards legal fees, totaling Rs. 17,81,300, paid to various advocates. These payments were often made without proper authorization, as the club’s managing committee did not approve many of these expenses. The report criticizes this as a direct financial burden and a clear deviation from the club’s governance procedures.
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Administrative Discrepancies
Beyond financial mismanagement, the audit scrutinizes specific administrative actions taken by the club’s secretary and other officials, which appear to contravene the club’s established bylaws. Notably, the unilateral cancellation of 86 temporary memberships by the club’s secretary, without the managing committee’s approval, was highlighted. This action was criticized for lacking legal and procedural justification, particularly as it ignored potential Covid-19 impacts on membership continuity.
Call for Action
The findings from Ram Ratan Gupta & Co. necessitate urgent introspection and action from Lucknow Golf Club’s management. Members and stakeholders are increasingly vocal in their call for a stringent review of the roles and decisions made by the club’s top brass, particularly in light of the financial discrepancies and policy violations uncovered. There is a growing consensus that those at the helm, including the president, must be held responsible for the oversight failures that led to these breaches. The Audit Report has been attached below.