The Hindu 04.09.2014
South civic body to buy heavy machinery worth crores despite alleged irregularities
Two proposals to buy heavy machinery were cleared on Wednesday by the BJP-led South Delhi Municipal Corporation’s Standing Committee, despite the party’s own councillors alleging irregularities and the Finance Department questioning the plans.
Standing Committee chairperson Satish Upadhyay pushed through dissent from his own party to pass a Rs.5.09-crore proposal to buy 30 front-end loaders for the Department of Environment Management Services.
“This needs to be passed now,” said Mr. Upadhyay, referring to the proposal that was first approved by the Corporation in June 2013. With Wednesday’s clearance, the contract will be awarded to JCB India. This is the third tender for this proposal.
According to the proposal, the first tenders were called in May 2013 and seven firms applied for the same. However, the terms were modified and a new tender was called in which two bidders – JCB India and ACE Ltd. – qualified.
But on January 1 this year the tender was again cancelled. A third tender was called on January 24 and three companies applied. Again, JCB India was the only bidder that qualified as per technical conditions.
The tender process may be surrounded in confusion, but councillors and officials have poked holes in the proposal itself. The Finance Department said the Engineering Department should have included annual maintenance contracts in the tender, which have been left out.
One of the other bidders had questioned the neutrality of the tender, which were not addressed by the Engineering Department. ACE Ltd. had alleged that the department’s specifications are not vendor-neutral.
BJP councillor from Vasant Vihar Radhey Shyam Sharma as well as Leader of the Opposition Farhad Suri objected to the proposal. Chief Accountant-cum-Financial Advisor Rajesh Pathak said: “We are not satisfied with the department’s replies to our concerns.”
However, the proposal was passed.
A Rs.24.11-crore plan to buy eight suction and suction-cum-jetting machines each was also cleared despite protests from the Congress councillors. The same proposal had first been approved in June 2013 and at that time the machines would have cost Rs.13.42 crore – that is approximately Rs.10 crore less. Engineer-in-chief Ravi Das said the capital cost had not gone up.
“We have not got the details as how to the price increased so much in one year,” clarified the CA-cum-FA. But, again, the Standing Committee cleared the proposal on Wednesday. Mr. Suri said he would write to Lieutenant-Governor Najeeb Jung to demand a CBI inquiry into the two contracts.
Neutrality of tenders questioned; Leader of Opposition demands CBI probe
