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This is an archive article published on December 24, 2011

Rules flouted,contractors favoured in Pune Games: CAG

CAG finds irregularities in infrastructure works carried out ahead of 2008 Commonwealth Youth Games.

The Comptroller and Auditor General (CAG) has found several irregularities in the infrastructure works carried out ahead of the third Commonwealth Youth Games (CYG),held in Pune in 2008.

Rules were openly flouted in the award of contracts for constructions and procurement of equipment; certain firms,including B G Shirke Construction Technology Ltd,were favoured unduly,the CAG says.

However,the report,tabled on the last day of the winter session of Maharashtra legislature yesterday,has not directly indicted organising committee chairman Suresh Kalmadi.

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Addressing a press conference here today,Principal Accountant General Mala Sinha said the report was restricted to infrastructural development ahead of the games.

“Various committees were set up and role of an individual cannot be highlighted. This is a failure as far as overall supervision is concerned,” she said.

The report says that apex committee and review committee set up for CYG failed to oversee the arrangements closely. The apex committee never met; review committee met only thrice.

Organising committee was in charge of the conduct of the games. Apex committee,which never met,was headed by the chief minister. It was responsible for obtaining funds from the Centre.

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Undue favour was shown to B G Shirke Construction Technology Private Limited in award of contracts worth Rs 32.65 crore without tendering,and excess payment of Rs 45.79 lakh was made to it for installation of passenger elevators due to application of incorrect rates,CAG says.

Review committee,headed by Chief Secretary,was responsible for overseeing the work of the executive committee and facilitating expeditious sanctions.

Rules and regulations were openly flouted in the award of contracts for constructions and refurbishment of the sports complex and procurement of electronic,sports and other equipment,CAG says. The executive committee placed orders for various types of sports equipment on the basis of single tenders on the recommendations of the organising committee.

There were deficiencies in the construction of a three star hotel on public private partnership basis. Though commercial use of the plot was not permitted under the Maharashtra Regional Town Planning Act,the director of sports and youth services,who was the member secretary of the executive committee,entrusted construction of the hotel to Unity Infra Projects,through a flawed tendering process.

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The firm did not pay the annual premium as per the agreement,CAG adds. The director,sports and youth services,also unauthorisedly retained unspent amount of Rs 3.47 crore drawn from the contingency fund and did not remit it into the treasury,it says.

Overall,the lack of effective planning and execution resulted in non-completion of many city infrastructure works before CYG. Commencement of work without ensuring clear sites resulted in blocking of funds and avoidable expenditure of Rs 177.04 crore,says CAG.

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