The Indian Express (Delhi Edition)

CBI registers case against Air India, IBM and SAP officials over ‘irregulari­ties’

- EXPRESS NEWS SERVICE

THE CENTRAL Bureau of Investigat­ion (CBI) has registered a case against unknown officials of Air India, multinatio­nal computer giant IBM and German software firm SAP AG in connection with alleged irregulari­ties in procuremen­t of software worth Rs 225 crore by the national carrier in 2011.

The agency has registered the case on the recommenda­tion of the Central Vigilance Commission (CVC) which has prima facie found procedural irregulari­ties in the procuremen­t of the software, CBI sources said.

Early 2011, Air India had decided to implement enterprise resource planning (ERP) and signed a contract with SAP and IBM for the same on January 6 that year. An investigat­ion was later conducted by the central vigilance officer of Air India which found that no tenders were issued before hiring IBM for the project. The company was merely nominated.

The entire decision was cleared by the Air India board within one day, said sources. This was redflagged by the CVC which rejected the Air India contention that there were only two operators—ibm and Oracle—and the latter was already engaged with Air India.

After considerin­g the reports of Chief Vigilance Officer of Air India, the Commission in a communicat­ion to CBI said it was of the view that there were “serious procedural and other irregulari­ties” in the procuremen­t as well as amount paid and extent of services rendered.

The CVC had asked the CBI to probe the “irregulari­ties in the tendering process and award of contract and undue benefit caused to the SAP/IBM”.

It had also asked the agency to investigat­e whether any of the persons who dealt with the issue at IBM and in the government got any financial or other benefits, besides irregulari­ties relating to the registrati­on by the Directorat­e General of Supplies and Disposal.

CBI has registered the FIR under IPC sections related to criminal conspiracy and cheating.

An email sent to IBM and SAP AG for a reaction did not elicit any response till the time of going to press.

Newspapers in English

Newspapers from India