The Hindu        22.03.2011

BBMP move skirts tender process

The Mayor and the Deputy Mayor's discretionary funds, totalling a whopping Rs. 175 crore a year, can now be used without the mandatory tendering process.

The Bruhat Bangalore Mahanagara Palike's (BBMP) request for 4 (g) exemption under the Karnataka Transparency in Public Procurement Act 1999 was approved by the Finance Department on March 10, according to a letter issued by the Urban Development Department on March 11.

It was during the 2010-11 budget that the Mayor's grants went up from Rs. 20 crore to a staggering Rs. 150 crore. For the first time, the Deputy Mayor got a fund of Rs. 25 crore.

Raised eyebrows

Henceforth, works taken up under the Mayor and Deputy Mayor's discretionary funds may be handed over to the Karnataka Rural Infrastructure Development Ltd. (KRIDL), a government agency, without going through the tender process.

This has raised the eyebrows of a section of BBMP's officials.Under the law, 4(g) exemption is applicable for emergency works and those taken up during natural calamities or construction of schools, colleges, anganwadi buildings, hostel rooms, housing for the economically weaker sections of society, primary health centres, rural water supply and sanitation work.

Under the Act, a project can be scheduled and approved without tender process “during the period of natural calamity” and/or “as mentioned by the State Government from time to time.”

Overspending?

However, officials said that this move may lead to the BBMP coughing up much more for the projects even though KRIDL is a government agency.

“If there is tender process, the works could be handed over to the contractor who quotes the least. However, as this process may be bypassed, vested interests may try to inflate the actual project cost and pocket the remaining funds,” the official alleged.

Mayor S.K. Nataraj justified the move saying KRIDL could execute “piece works”. “The funds are being utilised for various works, including laying of roads, construction of culverts and strengthening of storm-water drains,” he said.

Even if KRIDL is to take up work, it has to be as per norms. If the work is being subcontracted, then it is bound by the transparency Act, the officials said.

The BBMP Council earlier saw heated debate on the quality of work, especially filling of potholes, executed by KRIDL.

The Council then decided not to hand over any work to KRIDL, only to change its mind later.