Tue22052012

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Contractors still not paid, projects unfinished: CAG

The Comptroller and Auditor General of India (CAG) in its report related to Commonwealth Games 2010 says over Rs623.17 crore has not been paid to contractors till date and also points to unfinished projects.

The CAG report on Commonwealth Games 2010 tabled in the House on Friday highlighted deficiencies in execution of several projects and grant of approvals by Government at different stages was the reason of increased costs and delays of the projects.

According to CAG notes, out of 40, 16 projects are not complete till date that include improvement and upgradation of Shivaji stadium, integrated security system of Shivaji stadium, TPIQA for Talkatora stadium, park and ride facility at Safdarjung airport, redevelopment of Connaught Place, road signages of Connaught Place, horticulture works for redevelopment of Connaught Place and escalators in new and existing subways of Connaught Place.

The CAG note also came down heavily on the decision to extend it legacy for seven years was without a proper assessment of the requirements of either Delhi police or other public agencies. “Delhi police which held 38 per cent of the sets during 2010 Games amd 79 per cent for legacy use, conveyed that they were not satisfied with the signal quality inside and underground during the Games. The Special Commissioner had called the Tetra system a ‘failure’, the notes said.

To avoid further embarrassment and humiliation on Commonwealth Games, Delhi Government very diligently tabled the CAG report on the last day of the session. By the time the Opposition could read and react over the report, the House was adjourned sine dine. The CAG report of Delhi Government is almost on the lines of the CAG report tabled in the Parliament on August 5, 2010 by the Central Government.

“The initial cost of the CWG was just Rs1,200 crore in 2003 which increased to Rs18,532.31 crore in December 2010 out of which the share of Delhi Government was Rs9672 crore. Of these, Rs761 crore and Rs2,800 crore was given by Centre as JNNURM and central assistance to Delhi Government,” the notes said.

Concluding the report, CAG of Delhi notes “Deficient planning put pressure on timelines and created a sense of urgency. As works were not spread out evenly over the years preceding the Games there was unprecedented bunching of activities in the final years before the Games.

With an immoveable deadline of the games, there was considerable relaxation of rules and procedures in making purchases and awarding contracts for works on higher costs. Transparency in following procedures was also not ensured. The Delhi Government had not settled its bills in respect of at least 40 completed projects even after one year of Games”.

The Audit report contains 200 pages very minutely pointed out the discrepancies in the execution of CWG projects. On the work of Talkatora and Shivaji Stadium, the Audit observed that none of three bidders shortlisted were technically eligible. It further notes “The reply is not tenable because from October 2006 to May/November 2008 there was sufficient time to re tender and since Raja Aederi Private Limited was ineligible for a project valuing Rs30.45 crore the award of consultancy work with project cost of Rs204 crore to the firm lacked justification”.

On Thayagraj stadium, the Audit notes: “There was inadmissible payment of Rs3.03 crore separately for nuts and bolts in steel work”. Criticising nearly on every front, the Audit notes: “It found no evidence of Delhi Government having conducted detailed studies of experiences of streetcaping projects in Indian/world cities, and their impact on the local community.” When asked, Chief Minister Sheila Dikshit said:  “It is tabled in the House and now the Public Accounts Committee (PAC) will see into it”.

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