Though the state auditor-general has been damning the BBMP year after year for its poor performance, the Bruhat Bangalore Mahanagara Palike has reportedly ignored its internal audit -- right from 1964, even in its earlier forms when it wasn't known as BBMP but as the city corporation.

The allegation was made by BBMP's Accounts Standing Committee chairman A L Shivakumar on Thursday. "As per the KMC Act, internal audit is a must, but it has been ignored. So there is no check and balance system in accounts, no bank reconciliation statement in BBMP, and lack of scrutiny leading to revenue loss. BBMP has only recorded its expenditures and not credit-debit statistics of its finances.

It is better to outsource the auditing system to a private agency, as do the local self-governments of Tumkur and Mandya," said Shivakumar. Which could mean that dozens of rackets must have flourished unchecked.

He alleged that fund-based accounting system has not been followed at the Palike. "After becoming chairman of the committee one and half months ago, I have written more than 14 letters to the officials concerned, but with no response."

Shivakumar will soon submit his report on anomalies in the accounts wing of the city corporation, to the mayor and commissioner.