Slug: City roads improvement projectRoad fund board gave undue favours to TRDCL

Thiruvananthapuram: The economic sector report of Comptroller and Auditor General (CAG), which was tabled in the Assembly last Friday, has found serious irregularities in implementation of city roads improvement project (CRIP) by Kerala Road Fund Board (KRFB).
The KRFB has been accused of giving undue favour to the concessionaire – Thiruvananthapuram Road Development Company Ltd (TRDCL) – on several occasions. The report has created a shadow of doubt over CRIP, which boasts of reviving major stretches of city roads at par with global standards.

The audit report has accused KRFB of causing excess expenditure of Rs 10.74 crore by allowing the concessionaire to use a different material for construction of footpath as against what was prescribed. CAG also mentioned that miscalculation of proportionate annuity caused undue gain to the concessionaire on account of interest – Rs 1.53 crore.

KRFB had also released unwarranted payment of ₹79.50 lakh for engaging traffic wardens during construction, while it was the responsibility of TRDCL, CAG noted.

Though TRDCL was responsible for maintenance for 15 years, CAG, after scrutinizing the periodical reports of the independent engineer (IE) engaged in the project, observed that the project facilities were not maintained as per the agreement conditions. Also, KRFB did not take proper action to repair and maintain the facilities, it noted.

Citing a major error by TRDCL, CAG, quoting the report of independent engineer, observed that most corridors did not fall within the acceptable value in the bump integrator test conducted in December 2016 and June 2017. CAG found that the then KFRB CEO P C Harikesh had ordered a third party review citing that the results produced by concessionaire and IE were different. Finally, the results submitted by the third party – Natpac – was found to be same as that of IE and concessionaire was asked to carry out rectification works. CAG has termed the decision to order for a third party test as ‘beyond the scope of the concession agreement and it undermined the role of IE’.

As per Article 5.5(b) of concession agreement, in case of failure to meet operations and maintenance requirements, KRFB may cause to repair at the risk and cost of the concessionaire and the concessionaire shall be liable to reimburse one-and-a-half times the cost to KRFB. Audit observed that the concessionaire did not rectify the defects pointed out in monthly/half-yearly reports of the IE on time.

The audit also observed that Harikesh was continuing even after government didn’t approve a request to extend his term after June 2016. The government has terminated his contract recently, with Deepthi Bhanu replacing him.

Bhanu and TRDCL project director Anil Kumar Pandala refused to comment on the CAG report. However, Pandala said he would welcome any official inquiry on the issue.