Though the AIADMK on Monday did not officially react to the DMK’s memorandum to the Governor seeking a CBI probe against Chief Minister Edappadi K. Palaniswami, its position has been that there was no wrongdoing in the award of tenders for executing highway projects.
Fisheries Minister D. Jayakumar told The Hindu that a response was being prepared by the Chief Minister’s Office, and it was expected to be out on Tuesday.
However, in the last one week, on separate occasions, both Mr. Palaniswami and Mr. Jayakumar have contended that one of the contractors in question (Ramalingam & Co) had been carrying out government projects for 35 years, and had landed contracts even during the DMK regime (2006-2011).
The DMK had alleged that the promoters of SKP & Co, which has come under the I-T Department’s scanner, and those associated with Ramalingam & Co, were business partners.
Dismissing the allegation that contracts had been excessively priced, Mr. Jayakumar explained the case of one of the highway divisions – Pollachi — saying the government had saved about ₹55.46 crore for roads having a total length of 377 km by clubbing various works. Had the work been carried out on a piece-meal basis, the government would have had to spend ₹278 crore.
“By adopting the system of performance-based maintenance contracts, the government saves money. No financial loss or irregularity has taken place,” the Minister added.