SHILLONG, July 8: Following The Shillong Times report on a Rs 149-crore scam in the implementation of the Saubhagya scheme, based on a preliminary audit report, fresh evidence has emerged to suggest that the then Chairman-cum-Managing Director of Meghalaya Energy Corporation limited (MeECL), PS Thangkhiew and former Director (Distribution), KN War, were against implementation of the Saubhagya scheme on a turnkey basis.
Official sources on Thursday informed ST that both the senior officials had taken this decision in view of past experiences from similar turnkey works which had resulted in cost escalation, poor quality of work and delay in completion of the projects.
Based on this decision, purchase orders for procurement of materials were issued to over 200 registered firms and vendors by the Additional Chief Engineer (MM) and other subordinate offices as per the approved rates and execution works on the ground were allotted to many electrical contractors as per the schedule of rates, an official said.
“The work orders were issued in May 2018 up to September 2018,” the official said.
According to sources, around 35,000 (22%) of the total targetted households had been electrified under the scheme when all of a sudden a tender notice was issued on September 26, 2018 for turnkey execution of the scheme vide memo No. MePDCL/CE(D)/SAUBHAGYA/2018-19/TKC/4.
The tender notice was floated for turnkey execution of the scheme in two packages amounting to a total of Rs 383 crore.
The Power department had claimed that the reason behind shifting the execution processes to turnkey mode was that the completion date had been advanced to December 31, 2018.
Interestingly, Thangkhiew was removed as CMD prior to issue of the tender notice and subsequently War was shunted out and given a less significant post in the Power department as Officer on Special Duty (OSD) till he attained superannuation.
It may be recalled that the MeECL Suppliers’ Association (MSA) had submitted a petition to Power Minister, James PK Sangma on November 15, 2018 with a copy marked to officials of the Corporation raising concerns over the sudden shift in the execution mode.
The MSA had argued that such decisions would adversely affect the interest of the state in terms of employment avenues, when there was no dearth of local expertise to undertake such works.
The MSA had expressed that the scheme may not achieve commendable success as the execution mode is not localised to one place but remains scattered from one household to another.
“Moreover, the turnkey contractors will be interested only in the supply component while the construction component which is vital will be left out in the hands of petty local electrical contractors at lower exploitative rates which have been a usual affair from past turnkey works. The wishful dream to complete this programme within December 31, 2018 is not realistic and practical to whatever yardsticks,” the MSA had stated in the letter to the Power Minister.
The representation assumes significance in view of the fact that the MSA had forewarned the Power Minister in apprehending that there will be huge escalation in the cost of materials with sub-standard infrastructure.
The Cabinet Secretary in his meeting on December 14, 2018 with officials of the state government and the MeECL had suggested that the work be executed departmentally as the rates quoted by the contractors was above estimated cost.
Hence, had the work been executed departmentally as suggested by the Cabinet Secretary, Government of India, an additional expenditure of around Rs 149 crore could have been avoided.
