Arappor Iyakkam, an NGO that has been fighting corruption, has alleged irregularities in awarding tenders for stormwater drains by the Chennai Corporation.
The Corporation has started work on stormwater drains in 335 locations at an estimated cost of ₹300 crore to reduce flooding ahead of the northeast monsoon.
Rates at variance
According to data compiled by the NGO, the bid amount and the amount quoted for individual components vary drastically from the scheduled rates. After an audit of 44 roads, it found that at least 82% of the roads already had drains and only eight did not have stormwater drains. The Corporation had given fresh tenders for existing stormwater drains, the NGO alleged.
“We have found that the contractors are currently demolishing old drains and constructing new ones. We have found out that a major loot of the public money is under way in the name of these projects and tender norms have been flouted,” Jayaram Venkatesan, convener of Arappor Iyakkam, told the media.
“We have heard reports from whistleblowers inside the Chennai Corporation that the stormwater drain tenders have also been awarded at percentages significantly higher than the market rates,” he alleged, claiming that the bids were limited and there was collusion and overpricing in the bidding process.
Conflict of interest
Project management consultants have been appointed for such projects through resolution 714/2018 dated August 30, 2018 for on-field monitoring and to verify bill payments of contractors. However, the payment to the PMCs are based on a percentage of bill amounts submitted by the contractors, he said pointing to the conflict of interest.
The PMCs would be paid more if they allow over-invoicing of bills or if contractors bill without doing the work or do poor quality work and bill the corporation in full. This incentive compromises the ability of the PMC to report violations, ensure quality of work and proper bill payments. This seems to have been purposely done by the Chennai Corporation to kill the independent monitoring mechanism, said Mr.Venkatesan. The NGO lodged a complaint with the DVAC, demanding that a case under the Prevention of Corruption Act, 1988, Competition Act and other relevant Acts be filed against erring officials. It sought to blacklist the firms.