‘Flawed planning, faulty contracts cost Rs 40 cr to JK’
Jammu, May 5: “Faulty contracts, wrong initiatives and impulsive moves by political executives with regard to execution of various projects across the state have sent Rs 40.27 crore down the drain,” reads the Comptroller and Auditor General of India’s this year report under the chapter ‘audit of transactions’.
The instances listed in the report, in each case, cite different reasons leading to wasteful expenditure, ranging from flawed planning, improper contract management, avoidable escalation charges, avoidable interest payments, impulsive moves and casual approach by political executives and officers.
The report says that the Public Works Department caused a whopping Rs 8.28 crore loss to the state exchequer by omitting to mention the supervisory charges in its Detailed Project Report (DPR), when Northern Railways entrusted it the task of constructing approach roads. The roads were to be constructed for 15 newly established railway stations along Qazigund–Varmul section at a cost of Rs 177.26 crore.
The J&K Public Works Account Code provides each Public Works Division to recover the cost of establishment and tools and plant at 71/2 per cent and ½ percent respectively as supervision charges on works costing Rs 5 lakh and above, those not financed out of the consolidated fund of the state.
By omitting mention of this provision, the department failed to recover these charges from Northern Railway, thus causing a huge loss to the state exchequer.
“In a clear case of improper contract management, the JMC caused the state a loss of Rs 3.43 crore due to its failure to invoke the contract clause after the contractors engaged for constructing Shopping Complex with 10 two-storied blocks abandoned the work halfway after receiving the cost of the work done, which was worked out at Rs 3.43 crore.”
The partially constructed complex is lying idle since 2006 causing wasteful expenditure of Rs 3.43 crore.
“Due to the impulsive move by then Chief Minister, the state suffered a loss of Rs 21.55 lakh, by withdrawing the project from the executing agency.”
The report said: The state government in 2007 sanctioned the construction of 300 bedded hospital in Islamabad to J&K Police Housing Corporation (J&KPHC) at an estimated cost of Rs 65.53 crore.
“Rs 5 crore was released to the Corporation. But in June Chief Minister convened a review meeting and decided to take back the project from the Corporation only to give it to J&K Project Construction Corporation. With the result the state lost Rs 21.55 lakh which was deducted by the J&KPHC at the time of remitting the released amount of Rs 5 crore on the plea that it had spent the amount on account of fee to a consultant entrusted to provide architectural conceptual designs.
Lastupdate on : Thu, 6 May 2010 21:30:00 Makkah time
Lastupdate on : Thu, 6 May 2010 18:30:00 GMT
Lastupdate on : Fri, 7 May 2010 00:00:00 IST
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