Hindustan Times (Lucknow)

CAG detects gaping hole in riverfront project

REPORT TABLED IN ASSEMBLY Points out anomalies at every stage, from inviting tenders to award of contract

- Rajesh Kumar Singh rajesh.singh @htlive.com ▪

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.

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