CAG picks flaws in army fresh ration procurement

CHANDIGARH: In its follow-up audit, the Comptroller and Auditor General (CAG) has pointed out that the process of procurement of fresh ration is still non-competitive in northern, western and southern commands despite recommendations. The report was tabled in Parliament on Tuesday.

Audit examined a sample of 383 contracts for fresh ration in the three commands and it was found that in nearly 66% cases, procurements were made only on one or two quotations. “Procurement with limited competition was carried out despite the fact that the number of vendors registered for fresh items during the period (201314 and 2014-15) ranged between 94 and141,” said CAG.

After examining the 2011 report of CAG on supply chain of ration in army, the public accounts committee (PAC) had made 15 recommendations in 2013, of which the government accepted 12. However, only two of them were implemented, said CAG. It adds, “We observed that there was no expansion in vendor base during the period under review. On the contrary, the number of vendors registered under all categories in Northern, Western and Southern Commands had reduced from 141, 98 and 132 in 2013-14 to 129, 89 and 125 in 2014-15, respectively. Further, the vendors continue to be registered for all items despite PAC recommendations for itemspecific vendors.” Earlier, the PAC had pointed out that reasonable rates (RR), determined by a panel of officers before opening of tenders, and accepted rates (AR) of fresh ration were much below the average local market rates (ALMR). Variation in contract rates within the same geographical area was also pointed out. In this regard, the PAC had recommended time-bound modifications in procurement procedure to rectify the anomalies and the ministry had accepted them (March 2013). “The revision of procedure is however still under process (June 2015),” said CAG.

At selected stations in Southern Command, it was observed that RR and AR of fresh items was up to 41% below the ALMR in 2013-14. However, in 2014-15, the RR and AR were respectively found 46% and 41% higher than the ALMR.

The AR of fruit at various stations in Western and Northern Commands was between 15% and 48% below the ALMR in 2013-14.

Also, on variation in contracted rates within the same geographical area, the CAG said that the rate of vegetables at Akhnoor in 2013-14 was 29% higher than the rates at Nagrota. Rate of fruit during 2013-14 at BD Bari (Jammu) and Akhnoor was 24% and 13% higher than the rate at Nagrota. Rate of fruit at Nagrota in 2014-15 was 23% higher than the accepted rate of the previous year. Western Command rates of vegetables in 2014-15 at Patiala, Chandimandir and Ludhiana were 13-28% higher than the rates of previous year and the rates of fruit in the same year at Ambala, Patiala, Chandimandir and Ludhiana were 20-28% higher than the rates accepted in 2013-14.

Audit examined the feedback reports generated by 39 units in the Northern, Western and Eastern Commands, wherein the troops had evaluated the quality of various items of ration under seven categories. The quality of ration was graded as good or below in respect of 60% and 73% of the feedback reports pertaining to Eastern and Northern Commands, respectively, whereas in Western Command, 84% ration items were graded as excellent.