CAG picks holes in awarding of Games contracts

first_imgThe CAG report on the 2010 Commonwealth Games, which is yet to be tabled in Parliament, indicts the Delhi government for irregularities in the development of infrastructure ahead of the sporting extravaganza. The state had worked on at least 25 roads and bridge-related projects, of which 17 were completed before the Games.The government auditor has focused on seven projects for a detailed review. Of these Rs 2,239-crore projects, six were implemented by the PWD, which is under the Delhi government, and one by the DDA, which is headed by L-G Tejinder Khanna. The CAG points out the bloated contractor’s profit and overhead (CPOH) charges of 37.5 per cent for the projects instead of the CPWD-stipulated 15 per cent.The hiked CPOH led to a higher baseline cost for bidders and indirect loss to the exchequer. In a clear indication that tenders and bids were botched to favour particular contractors, the CAG found that the PWD accepted tender documents which had an extensive use of correction fluids, cuttings and corrections.The report says the PWD not just accepted overwritten, corrected bids but also in at least three instances, the department – which is led by Sheila Dikshit’s close aide Raj Kumar Chauhan – admitted bids on random papers instead of government-approved formats. The Barapullah Nallah flyover project was singled out by the auditors for discrepancies.Bids accepted from the DSC Limited were filed on separate letters instead of formal bidding documents, the report said. The flyover contract was awarded to DSC for packages worth Rs 218.79 crore and Rs 214.92 crore. In another instance, the firm was awarded work for being the lowest bidder for the UP Link Road project. In this case too, the tender was submitted through separate letters instead of the prescribed format.advertisementIt couldn’t be ascertained if these papers had been placed in the file later. The bid for the Ring Road bypass project was also manipulated, as is evident from the corrections in the bid. The exchequer lost Rs 6.23 crore in the process. Causing a loss of another Rs 35 lakh, underweight reinforced steel bars were used on the Ring Road bypass. The government lost an extra Rs 1.1 crore due to post-tender changes in construction of the grade separator at the ISBT Anand Vihar crossing.The auditor also faulted the government with accepting the suspension model for the foot overbridge near the JLN Stadium that collapsed days before the Games. The report pointed out that though the PWD had no experience in such a construction, it went ahead with the design, Even the consultancy offered by the contracted firms and lackadaisical supervision is said to have led to losses.The wrong assessments made by the Delhi government departments are said to have caused losses of at least Rs 3.55 crore.last_img

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