CAG smells rat in BBMP projects

Palike paid at least Rs 4,000 crore in excess for the work codes
Last Updated : 06 October 2010, 19:21 IST
Last Updated : 06 October 2010, 19:21 IST

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Irregularities to the tune of crores of rupees have surfaced in the work code orders with the CAG stating in his latest report to the government that the BBMP paid at least Rs 4,000 crore in excess for the work codes between 2008 and 2010.

The work code system was introduced to prevent repetition of work and speedy completion of the projects. But the work code system has become a mechanism for financial irregularities, according to the CAG report.

Projects worth Rs 1,141 crores were sanctioned in 2008-09. But work codes exceeding the budget by almost Rs 1,500 crores were given, reveals the report. Similarly in 2009-10 works worth Rs 2,438 crores were sanctioned but again an additional Rs 2,500 crore worth work codes were given for various projects.

Consent missing

The report also brings to the fore another astonishing fact that the then commissioners were not informed about the various projects for which the work codes were given. The CAG report pointed out that the work codes were cleared by getting consent from the chief audit officer instead of the Commissioner, which amounts to dereliction of duty.
Methods of irregularities

What has surprised even the CAG is that the details of all the work undertaken through work codes are missing. There is no information about the name of the ward, sub-division, zone in the work codes, which raises the question whether the work was actually executed.

For a particular nature of work, a definite work code is given after which the project cost should not exceed the fixed amount but that could not happen in the last two-three years. Also other work should not be tagged with a particular work code which again was not followed and many other works were introduced in a single work code.

The CAG report also found that the tender notices were published in newspapers outside the city, that too in lesser known dailies whereas it should have been published in reputed dailies in the City. This was done to benefit certain contractors, the report points out.

Most of the work codes were for the works near Metro Rail project, like asphalting road, constructing drains and construction of footpaths.

This has been done intentionally to use it as a pretext against the substandard works, only to prove that the works were carried out effectively but the Metro Rail Project damaged the civic amenities, the CAG report stated.

The CAG has now sought details of works in the year 2009-10 as well. The Commissioner has asked all the 84 executive engineers to submit their reports pertaining to these works. He has asked them to give work code number, title of the works, works undertaken, name of the ward, expenditure, details of the Earnest Money Deposit (EMD) and the date and the name of the bank when the EMD was deposited.

Published 06 October 2010, 19:06 IST

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