Key Points
Navy discovers massive financial irregularities during routine club audit
Special investigation ordered against long-serving female employee
Zero tolerance approach towards financial misconduct
Independent chartered accountant to conduct detailed probe
The USI is a 97-year-old Tri-Services Club run by the defence forces. Defence officials said that a few months earlier, as part of a routine audit, a discrepancy was noticed by the Secretary of the Club.
This led to a special audit by the contracted Chartered Accountants and, subsequently, detailed scrutiny of the financial accounts was undertaken on instructions of the Club Management, whereupon significant anomalies were discovered.
"Accordingly, an FIR has been lodged with the civil police to properly investigate the matter. Further, a detailed Special audit by an independent Chartered Accountant has been ordered," they said.
The Defence forces and US Club are committed to maintaining the highest standards of conduct and financial probity, and all cooperation will be extended to the law enforcement and financial agencies to identify any wrongdoing and ensure justice, the officials said.
The Indian Navy top brass has zero tolerance in cases of financial wrongdoings and strict action would be taken against anyone found guilty in the probe, they said.
The initial Navy probe is pointing fingers towards a female employee who has been working with the club for over two decades and was looking after the running of the club, defence officials said.
The Indian Navy decided to hand over the case to the civil police after finding wrongdoings at its level and the involvement of the civilian persons in it.
