CAG detects gaping hole in riverfront project
REPORT TABLED IN ASSEMBLY Points out anomalies at every stage, from inviting tenders to award of contract
LUCKNOW : With the Comptroller and Auditor General detecting massive irregularities in the Rs 1,500 crore Gomti Riverfront Development Project launched by the Samajwadi Party government in 2015, more trouble is in store for the engineers, bureaucrats and politicians accused in the project. CAG has detected irregularities in all stages of the project, from inviting tenders to award of the contract and construction of the wall, drains and rubber dam on river Gomti.
LUCKNOW:: With the Comptroller and Auditor General (CAG) detecting massive irregularities in the Rs 1,500 crore Gomti Riverfront Development Project launched by the Samajwadi Party government in 2015, more trouble is in store for the engineers, bureaucrats and politicians accused in the project.
The CAG report on the project was tabled in the legislative assembly on Thursday. CAG has detected irregularities in all stages of the project, from inviting tenders to award of the contract and construction of the wall, drains and rubber dam on river Gomti.
On January 24, the Enforcement Directorate conducted searches at 10 locations in Uttar Pradesh, Delhi, Rajasthan and Haryana in connection with money laundering in the riverfront development project. Along with documents, the ED officials seized computers, laptops and other incriminating material during the raids.
To recall, in July 2017, the state government had recommended a CBI probe into the alleged irregularities “committed with a criminal intent” in the implementation of the Gomti river channelization project and the riverfront development project by the state irrigation department. The CBI took over the case in November 2017. The agency has registered FIR against several engineers and bureaucrats.
The CAG report states that in March, 2015 the state government launched the Gomti Riverfront Development Project at an estimated cost of Rs 656.58 crore, with the objective of developing a world class riverfront on the Gomti in Lucknow for promoting
tourism and facilitating water supply to the state capital. In June 2016, the cost of the project was revised to Rs 1,513.52 crore.
The government has spent Rs
1,447.84 crore till September 2017.
During audit of the project, CAG detected that irregularities were committed in the notice inviting tenders for the project in newspapers. It has recommended a vigilance probe for disciplinary inquiry and criminal prosecution of the officers and engineers involved in floating tenders and awarding contract.
After issuing notice inviting tenders for the construction of the diaphragm wall, the superintending engineer lowered the qualification criteria for the project violating the directions of the finance department and chief vigilance commission (CVC) guidelines. The corrigendum was not published in newspapers, nor was there any record of the purchasers of tender documents having been informed about the change.
CAG also pointed out that Gammon India that was awarded the contract was ineligible in terms of the original tender conditions, since it only had experience of excavating 19 lakh cum of earthen bund earthwork. The company did not have the stipulated expertise in hydraulic structures.
CAG also detected irregularities in the construction of the intercepting trunk drain on the banks of the river for channelization in Lucknow. The contract was awarded to M/s KK Spun Pipe Private Limited, New Delhi for Rs 285.70 crore.
The technical evaluation of bids was not done and the technical report was also not prepared. The firm did not fulfil minimum technical qualifications and did not submit the mandatory certificates on financial fitness to be issued by the DM. The bid of another firm M/s Patel Engineers which met the technical criteria was rejected.
Irregularities were also committed in the rubber dam construction.
The notice inviting tenders was not published in any newspaper and no pre-qualification was fixed for the firms. The agreement stipulated that the department would import rubber membrane worth Rs 31 crore floating global tender and provide it to the contractor.
Despite this, Gammon India was allowed to import rubber membrane on its own for Rs 18.84 crore against which the department paid Rs 29.24 crore to the firm.
This resulted in undue benefit of Rs 10.40 crore to the firm at the expense of the public exchequer. CAG also pointed out that Lucknow division of Sharda Canal did not produce 26 records requisitioned by it. Replies were also not furnished for 230 audit memos relating to the project.
The observations of CAG are only limited to test checks. The government was required to review all the contracts related to the project, CAG said.