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| RC spent Rs 12 cr more on transit accommodation of Kashmiri migrants: CAG | | | Jehangir Rashid
Early Times Report
SRINAGAR, July 6: Awarding of contract without inviting bids by Relief Commissioner (Migrants) for construction of transit accommodation at different sites in Kashmir valley has resulted in excess expenditure of around 12 crores.
In its report for the year ending March 31, 2015, Comptroller and Auditor General (CAG) of India has said that award for construction of transit accommodation at different sites in Kashmir valley to Small Scale Industries Development Corporation (SICOP) without bidding after cancellation of tendering process by the Relief Commissioner (Migrants) Jammu resulted in extra expenditure of Rs. 11.94 crores.
The CAG said that the matter was referred to the Revenue department of the state in June 2015 adding that no reply thereof was received up to November 2015. "The department in reply (March 2015) stated that the SICOP had not for the first time executed any project for the Relief Organization and that many state government departments had been getting works executed through SICOP," wrote the CAG.
The CAG said that the reply was not acceptable as arbitrary decision making of the department to cancel tendering process twice without valid reasons and subsequent award of contract without ascertaining reasonability of rates resulted in extra expenditure of Rs. 11.94 crores.
"Audit scrutiny further showed that against the cost of Rs. 6.87 lakhs per unit payable to the SICOP Rs. 7.50 lakhs per unit was paid by the Relief Commissioner at his own level without obtaining approval from the state government," said the CAG.
The CAG said that audit check (March 2015) of records showed that Relief Organization (Migrants) decided to construct pre-fabricated structures for transit accommodation at Vessu (Qazigund) and Khanpora (Baramulla) in Kashmir valley. Accordingly, tenders were invited (23 October 2009) and on the next day, a corrigendum was issued wherein annual turnover of firms/agencies being one of the eligibility conditions was increased.
"On 11 November 2009, few days before the last date of bidding, Minister for Industries and Commerce demi officially requested Minister for Revenue for placement of orders of prefabricated structures with the SICOP. During the tendering process the SICOP was found ineligible as it had not executed even a single work of such nature during the past five years, which was a mandatory requirement," said CAG.
The CAG said that three firms for location at Vessu and five firms for location at Khanpora were found eligible adding that M/S. Sintex Industries which had quoted a rate of Rs. 960 per square feet (for a unit of 480 square feet area) was found to be the lowest for the works at both the locations and was accordingly requested to furnish the design of the proposed structure. After the tendering process was completed, a contract committee was constituted which decided to cancel the current bid and invite fresh NIT on the ground that a corrigendum issued one day after issuing NIT would invite criticism.
"Thereafter a fresh process of bidding was initiated (18 December 2009). Again the process was terminated (30 December 2009) on the advice of Relief Commissioner on the ground that the organization shall not be able to supervise the works in the valley with skeleton staff. The advice for cancellation of tendering was injudicious as the Relief Commissioner had authorized the first bidding process and was a member of contract committee that had initiated the second bidding process," said the CAG.
The CAG said that the department took up in January 2010 the matter with Jammu & Kashmir Projects Construction Corporation (JKPCC) who though willing to execute the work expressed inability to complete it by 15 March 2010. The matter was taken up in February 2010 with the SICOP for furnishing the cost offer and willingness to execute work within the stipulated time and the SICOP proposal was approved by the Minister for Revenue.
"The SICOP was authorized to take up construction of transit accommodation for Kashmiri migrants at a revised negotiated cost of Rs. 1309 per square feet (for unit of 525 square feet). Audit had noticed that the SICOP in turn allotted the work to two contractors without any bidding. As of March 2015 the project was incomplete. Thus, after terminating the tendering process on two occasions, the work was finally allotted arbitrarily by the department," said the CAG. |
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