CAG pulls up Navy for placing order with firm with poor record

The government auditor CAG pulled up the Navy for placing orders with an American firm for providing air conditioning equipment for the Project 28 corvettes despite its poor supply record.

New Delhi: The government auditor CAG on Tuesday
pulled up the Navy for placing orders with an American firm
for providing air conditioning equipment for the Project 28
corvettes despite its poor supply record.

The firm York International was selected by the Navy in
September 2007 for an order worth Rs 65 crore for supplying
four sets of air conditioning equipment for the project.
"Despite the fact that M/s York performed poorly while
meeting requirement of the Project-17, the Professional
Directorate nominated it for supplying equipment for the
Project 28 warships," the CAG report said.

"This is also corroborated with the poor progress made
by the firm in meeting its commitments for delivery of the
systems for the warships," it added.

The CAG also observed that the delay has already led to
a setback in the scheduled delivery of the Project-28 as the
shipyard is finding it difficult to go forward with other
related activities.
It also said that poor vendor management was observed by
it in contracts worth over Rs 275 crore.

Commenting on the issues in procurement of items, the
CAG said the practice of Navy nominating vendors for buying
sensors, weapons etc "effectively restricts competition and
lowers transparency."

PTI

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