Tender rates inflated by Rs 70 cr; Exe Engineer suspended
Allegations of large-scale financial irregularities in tendering of lift irrigation points, including submersible pump sets, in the Odisha Lift Irrigation Corporation (OLIC) have come to the fore following the suspension of an Executive Engineer recently.
A four-member committee formed by the OLIC authority is now probing the allegations. The Executive Engineer was suspended on prima facie findings. Excess value of about Rs 70 crore was reportedly inflated in the tender value of different items to favour the contractors, said sources.
According to sources, the OLIC had tendered in three different phases between September 2017 and January 2018 for installing as many as 46,160 lift irrigation points in different districts, with a total estimated cost of Rs 1,404 crore. These tender was floated in three phases, involving 117 packages. Interestingly, although the tenders were finalised in favour of lowest bidders, there were allegation of irregularity and tender fixing.
Sources said OLIC officials had allegedly prepared the tender to help a supplier to grab the tender with a very high margin.
The value of each pump set in the bill of quantities (BOQ) was reportedly inflated over and above the estimated value. Significantly, The OLIC was earlier procuring such pump sets and giving them to contractors for installation, but in this tender the pump supply responsibility was given to contractors.
A contractor has allegedly been awarded maximum jobs. Ironically, higher capacity pumps were quoted less than the lower capacity pumps by this supplier, which clearly hinted at tender fixing. For example, the party had quoted Rs 30,000 for 70-meter head pump sets and at Rs 13,000 for 100-meter head pump sets of same capacity, since the requirement of 70-meter head was 11,540 pieces and need of 100-meters head was 462 only.
Sources said while security money and inspection fees for installation of electric points were earlier being directly paid by the OLIC, this responsibility was also given to contractors.
Again, against estimated cost of Rs 2,848, the tender rate was inflated to as high as Rs 12,965. The excess amount loaded on this account was a whopping amount of Rs 46 crore against connection of 46,160 points.
“There were allegations of irregularities and tender fixing from some sources, including from our department level, following which we have formed a four-member committee led by OLIC Executive Director HR Das to probe the matter,” said OLIC MD Niranjan Nayak.
“Finding prima facie, we have suspended Executive Engineer Manoj Mohanty, who was directly handling this tender. He processed the tenders without competent authority,” said Nayak.
He said appropriate disciplinary action would be taken against the guilty persons on receipt of inquiry report.
