Expressing displeasure over the process of tendering and execution of the Rs 1,118.32-crore Sion-Panvel highway project, the Public Accounts Committee (PAC) has demanded an action taken report (ATR) within three months against government officials facing an anti-corruption bureau (ACB) probe in the matter.
Financial irregularities, compromising on the project work, and manipulations in issuing tenders have been pointed out by the PAC. The irregularities reportedly happened during the erstwhile Congress-NCP regime, between 2009 and 2014.
A report on the functioning of the Public Works Department was tabled in the state Assembly on Tuesday. The report noted that there were serious lapses in the tendering process with at least four firms being denied participation. The tender which was admitted was undervalued at Rs 845 crore, the report stated.
“The project structure and design was tampered without consulting or getting the consent from experts at the IIT. The original design structure in the feasibility report was altered when the contract was awarded,” stated the PAC.
According to the report, “The dispute between Congress and NCP on who should construct the project, PWD or MSRDC, led to a three-year delay and cost escalation.”
The PAC, commenting on another road project, Alibaug-Pen-Khopoli, said the project estimated at Rs 24.28 crore was brought down in a revised report to Rs 14.25 crore and renegotiated while awarding tenders at Rs 17.94 crore. The project was awarded through single tendering. PAC recommended a special investigation team (SIT) to probe into the matter.
Despite serious violation of norms, the government has not taken action against any officials, which is a serious matter, the report stated. It directed the state government to submit an action taken report within three months against officials responsible for the wrongdoing.
The report states, “J M Mhatre from Panvel was the single bidder. Initially, the tender was for Rs 14.85 crore over the period of 19.5 years. However, after renegotiation the time period was brought down to 13.6 years.”
It pointed out that since the toll collection on the project has been suspended from 2014, the amount has not been provided to the project developer. To avoid any further legal complications, the state government should immediately resolve the issue, the report said.
Apart from pointing out anomalies in various projects undertaken by the PWD, the report expressed serious concern over government facilitating private contractors to avail 100 per cent bank loans by standing as guarantor.
The PAC noted, “In the Build Operate and Transfer (BoT) projects the debt ratio is 70:30. The government cannot become facilitator to help private contractors raise funds from banks. How the funds are raised should be a matter between the private contractor and the bank. The government cannot become a guarantor to facilitate 100 per cent loan to private contractors from banks.”
The PAC pointed out that in several instances it was noted that often, after raising the funds, private contractors diverted the funds for different projects.
