The Hindu   23.08.2012

Councillors allege scam in purchases by Davangere City Corporation

Staff Correspondent 

D.N. Jagadish, Leader of Opposition in the Davangere City Corporation council, alleged that the corporation had purchased computers, sewing machines and gas stoves, and taken LPG connections worth crores of rupees under the 22.75 per cent grants meant for the welfare of the Scheduled Castes and Scheduled Tribes in the district, violating the Karnataka Transparency and Public Procurement Act.

Mr. Jagadish, and K.G. Shivakumar and Dinesh K. Shetty, councillors, told presspersons here on Wednesday that before purchasing any of these items, a proposal should have been placed before the general body of the corporation and its consent obtained, which the corporation had failed to do. They alleged that the former chairman of the standing committee (Finance) Rudramuniswamy, corporation Commissioner Prasanna Kumar and the accounts officer had purchased the material “secretly”.

Mr. Jagadish alleged 1,850 gas connections were given to beneficiaries and an equal number of gas stoves were purchased. Besides, he said 600 sewing machines and hundreds of computers were also bought.

Mr. Jagadish said that he would lodge a complaint with the Lokayukta and added that he would write to senior officials of the Urban Development Department to probe the matter.

Mr. Prasanna Kumarruled out procedural lapses in the purchase of the items and said the corporation had obtained permission from the Deputy Commissioner before buying them.

He said that the items were distributed to beneficiaries as recommended by councillors, including Jagadish.

Mr. Kumar added that the standing committee had approved the purchase of the items and added there was no truth in the allegations of corruption.

• Councillors say the Karnataka Transparency and Public Procurement Act has been violated
• Commissioner denies allegations, rules out procedural lapses in purchases
  

The Times of India   22.08.2012

Panel to reject proposal on contracts

The standing committee is all set to reject the civic administration proposal to award contracts for petty civic works to 31 contractors.

The present contract of 110 petty civic work contractors will expire in September, after which the administration had planned to allow the recently finalised 31 contractors for ward-level petty civic works. It had also planned a ‘viability study’ — aimed at verifying whether the contractors would be able to complete the work with their estimates — of the low rates quoted by contractors for petty civic works contracts in 24 wards and at four hospitals in the city.

Standing committee chairman and Shiv Sena corporator Rahul Shewale said, “There is a majority opinion in the committee that the viability test is not the correct way to determine the capability of these 31 contractors. They had bid at about 60 per cent low, which will be difficult to execute. Also, only 31 contractors to work in 227 wards is a very difficult task. The older norm of 110 contractors was appropriate; it should be brought back.” He said each contractor would have to overlook works in eight-nine wards now.

Leader of Opposition and committee member Dnyanraj Nikam said, “It is not practically possible for 31 contractors to handle all 227 corporator wards. This would result in a burden for them. Also, the quality of work and time taken to finish the work will suffer.”

The renewed civic works contracts were put on hold in June this year as BMC officials were unsatisfied with the justifications presented by the 31 shortlisted contractors for the abnormally low bids in the recently floated tenders. Despite cutting down the number of contractors from 110 to 31 to curb malpractices at ward-level, the contractors bid nearly 60 per cent lower than the market rate, raising concerns about the quality of work.

An internal note circulated by chief accountant (finance) Ram Dhas, in April this year, had accused the ward-level contractors of siphoning off BMC money by getting work orders for works not required and doing shoddy work.