CAG flags previous BJD-govt’s excess ad spend on private TV channels; top television network OTV received nil

In a major revelation, Comptroller and Auditor General (CAG) flagged serious irregularities in advertisement spending by the Odisha government on private television channels during the BJD-led government, on Wednesday.

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The report highlights that the Information and Public Relations (I&PR) department delayed implementing Central Bureau of Communication (CBC) rates while allocating ads, resulting in an excess expenditure of Rs 12.11 crore from the state exchequer.

This overspending occurred despite a standing policy from 1998, which mandates that all ads be issued as per CBC-approved rates. Interestingly, the CAG found that during financial years 2018–19 and 2020–21, a total of Rs 74.37 crore was paid to 10 private TV channels, often at rates 1.53 to 7.80 times higher than the CBC norms.

Even more striking is the absence of Odisha’s leading news channel OTV from the list of beneficiaries, indicating that no advertisement funds were allocated to OTV during that period.

The CAG disclosure raises serious questions about transparency and bias in the previous government’s ad policy and has added fresh fuel to the ongoing political debate over media favouritism and misuse of public funds.

“Pending preparation of a policy, the quotations for the rate of advertisements in electronic media were called (November 2016) from different electronic media houses, on the direction of Commissioner-cum-Secretary of the I&PR Department. Quotations from 13 private television channels were received during November 2016. The Commissioner-cum-Secretary finalised the rates for 10-second spots after a negotiation (17 November 2016) with the private television channels (PTC). Thereafter, the payments for advertisements were made to PTCs, at the rates so finalised,” the CAG report said.

“Audit also noted that the I&PR Department had paid Rs 74.37 crore to the PTCs towards advertisement cost in FYs 2018-19 and 2019-20. Audit scrutinised two vouchers worth Rs 15.79 crore for payment of advertisement cost to 10 PTCs, pertaining to the month of March 2019. It was found that all the 10 PTCs had been paid at the negotiated rates, which were higher than the CBC rates applicable, by 1.53 to 7.80 times,” the report stated.