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CVC finds deficiencies in CWG-construction works; seeks report

An inspection by the Central Vigilance Commission has found serious discrepancies like award of works at higher rates to bidders.



New Delhi: An inspection by the Central
Vigilance Commission has found serious discrepancies like
award of works at higher rates to bidders, poor quality of
construction and grant of work to ineligible agencies in
different Commonwealth Games-related construction works being
carried out by various departments here.

According to an assessment report prepared by CVC`s Chief
Technical Examination Wing, large-scale procedural violations,
including corruption, have been noticed in a total of 14
projects.

Five of them are being done by Public Works Department
(PWD), two each by Municipal Corporation of Delhi (MCD),
Central Public Works Department (CPWD), Delhi Development
Authority (DDA), New Delhi Municipal Council (NDMC) and one by
RITES, a Government of India Enterprise, the report said.

The CTE Wing has made the assessment of construction
projects following complaint of alleged corruption in them.

"We have found corruption and other procedural
irregularities in many Games-related construction projects.
After thorough examination, we have written a letter to all
concerned agencies to submit a detailed report," a senior CVC
official said.

The figure of corruption could be to the tune of Rs 20
crore, the official, who did not wish to be identified, said.

The CVC has asked Chief Vigilance Officers to re-examine
all the tenders and procurement process related to the
projects.

According to the report, "Almost all the organisations
executing works for Commonwealth Games have considered
inadmissible factors to jack-up the reasonable price to
justify award of work at quoted rates citing urgent or
emergent circumstances. Despite higher rates, poor site
management and delays and quality compromises have been
observed."

Pointing out deviation in works done by PWD, the
Commission said, "Over-all justification amount was highly
inflated by various methods in order to mislead higher
authorities to facilitate award of tender at very high rates.”

"An additional Rs 3.68 crore (approximate calculation)
was wrongly added in the justification for transportation
charges while the same were covered in over heads charges
adopted in justification. Moreover, no transportation charges
were actually incurred as labour camps were situated at the
project site itself," it said.

The PWD has carried out works including construction of
flyover at Naraina T-Point, Ring Road, elevated road over
Barapulla Nallah and upgradation of street lighting at various
zones.

As many as 12 of the 15 samples of concrete cubes
collected from construction works being done by NDMC failed to
meet requirement of strength.

"Broken concrete cubes and concrete core samples extracted
from already laid concrete were sent to independent laboratory
for testing. These samples not only failed in meeting the
requirement of strength but also the cement content was found
far lesser than prescribed...”

"Surprisingly, in the test records maintained for these
works, results for none of the concrete samples were recorded
as failed. This indicates that forged records of testing were
prepared," the report said.

Serious procedural violation were reported in construction
of Commonwealth Games Village near Akshardham temple by Delhi
Development Authority (DDA).

According to the Commission, an application was submitted
by consortium of four companies -- Payce Consolidated Ltd,
Paynter Dixon Construction Pvt Ltd and Robertson Marks
Architects Pvt Ltd, all Australia based, besides Sportina Exim
Pvt Ltd of Mumbai.

"As per the agreement to establish a consortium, the
members agreed to incorporate a limited liability company - a
special purpose vehicle company (SPV) in the name and style of
`Sportina-Payce Constructions (India) Pvt Ltd," it said.

"The agency was pre-qualified on the basis of experience
of Payce Consolidated Ltd. But at the time of submitting the
tender, a company was formed as `Sportina Payce Infrastructure
Pvt Ltd` which submitted the tender and finally work was
awarded to them.

"The structure of company `Sportina Payce Infrastructure
Pvt Ltd` was different from that originally stipulated. In
this company other partners except Sportina Exim Pvt were not
represented at all. Ultimately, at the site only Sportina Exim
Pvt Ltd was executing the work which does not have expertise
and experience...Thus undue favour has been given to agency,"
the report observed.

It also noted that installation system of specialised
items of aluminium composite panes and acoustic panes was
"cheaper" than the agreement specification.

"However, no cost adjustment was made for same until
pointed out by Chief Technical Examination Officer (CTEO),"
the report said referring to irregularities in development of
practice venue for Rugby at Jamia Milia Islamia university by
RITES.

The report said the Commission found discrepancy in the
tender process of up to Rs ten crore by MCD.

Violation of norms have also been noticed in construction
work being done by NDMC and CPWD, it added.

Meanwhile, reacting to the CVC`s findings, CWG organising committee chief Suresh Kalmadi said that the OC had nothing to do with stadium construction.

“Now we are going to take over the stadiums which are already built by the respective departments. We are not in this business at all,” Kalmadi told a news channel.

“We are only concerned about the stadium surface should be up to date. That`s it,” Kalmadi said.

PTI

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