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CAG pulls up Govt for ignoring violations in SSI deptt
'Works worth Rs 57 cr given on selective basis, irregular expenditure of Rs 36 cr found'
6/24/2015 11:59:30 PM
Peerzada Ummer
ET Report
SRINAGAR, June 24: The Comptroller and Auditor General of India (CAG) has pulled up J&K government for overlooking gross violations of rules in JK Small Scale Industries Development Corporation wherein undue benefits were accorded to contractors.
In its latest report the CAG mentions that 265 works at the cost of Rs 57.64 crore were allotted to various contractors on selective basis without tendering and without issuing any formal allotment letters.
"Of these, 16 works (cost Rs 6.95 cr) had been allotted to a single contractor and 42 works (cost Rs 7.17 cr) to the same contractor jointly. Similarly, 39 works (3 independently and 36 jointly with other contractor) amounting to Rs 5.55 crore had been allotted to another contractor without tendering," reads the audit report.
The report mentions that payment amounting to Rs 3.78 crore was authorized on hand receipts in violations of provision of J&K Public Works Account Code. The report adds that the marketing assistance was provided to 40 percent units registered with the company.
The CAG report mentions that the management has stated that works were allotted to contractors at the PWD schedule of rates, and contractors of nearby vicinity of the site are selected and works allotted to them to facilitate their execution. "The reply confirms that codal provisions of tendering and issuing allotment letters were violated by the company while executing the construction works," the report states.
It says that under Prime Minister's Package for return and rehabilitation of Kashmiri Pandit migrants, the company without ensuring vetting of designs, obtaining administrative approval and technical sanction and without fulfilling codal formalities viz inviting tenders, issuing allotment letters to the contractors, executing agreements and obtaining security deposits, allotted works for the construction of pre-fabricated structures at four locations to two contractors.
"Audit noticed that despite the delay of four years, only 477 huts had been completed at a cost of Rs 36.37 cr against the total sanctioned cost of Rs 33.13 cr, leading to excess expenditure of Rs 3.24 cr," the report adds.
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