SHILLONG, Sep 8: The USD 132.8 million ADB-funded smart meters project turns out to be yet another scam in the Meghalaya Energy Corporation Limited (MeECL).
In this episode the dramatis personae and the modus operandi are the same as the Saubhagya scheme which is under a judicial probe.
Documents in possession of The Shillong Times reveal that Satnam Global Infraprojects Limited is the primary beneficiary of the project that barely got implemented before hefty payments were released with direct connivance of some top brass of the Corporation.
Documents reveal that the Delhi-based firm managed to get Chief Engineer (Projects) of Meghalaya Power Distribution Corporation Limited (MePDCL), SB Umdor to issue a fake completion certificate for installation of 25,000 smart meters in Meghalaya, when in fact the Asian Development Bank which is financing the project through a USD 132.8 million loan, in a damning report has come down heavily on Satnam Global for failure to install and activate even a single smart meter six months after issuing the work order. ADB has pointed out among many other recommendations that the meters installed in East and West Garo Hills would not be considered as completed/commissioned unless the meters are connected to AMI (Advanced Metering Infrastructure) system.
This daily has accessed the report submitted by the ADB consultant to MeECL. It has even recommended that no further payments should be made to the firm till they show satisfactory progress as per the work order.
An office bearer of the Coordination Committee of Registered MeECL Employees Associations and Unions (CCORMAU) on condition of anonymity suspected that the reason for issuing the false certificate to Satnam Global is to make them eligible for similar smart meter tenders in North Eastern states like Assam and Tripura, amongst others. The Association has demanded an inquiry into the matter and also that the concerned Chief Engineer be kept under suspension.
Knowledgeable circles wonder how all the tenders floated by MeECL were awarded to a single firm. Whether it is Saubhagya, or smart meters or the much talked about Enterprise Resource Planning (ERP), Satnam Global has managed to corner tenders worth nearly Rs 1,000 crore in just three years under the current dispensation. Not surprisingly all the above projects are steeped in corruption, irregularities and allegations of huge cost escalation.
Curiously, all the projects are won by the company through single bid. All this could not have happened without the approval of the Power Minister.
Many are curious about the antecedents of the firm Satnam Global and its entry into Meghalaya. From records available on the public domain, it is learnt that Satnam Global whose main office is in Patparganj, New Delhi, has among its directors Himanshu Jain, Rohit Jain and Siddharth Jain. Himanshu Jain was even mentioned by the Leader of Opposition, Mukul Sangma on the floor of the Assembly as the one who takes major policy decisions in MeECL besides deciding key postings, appointments and transfers.
This firm was awarded the now much tainted Saubhagya Scheme back in 2018 and it supplied the materials to MeECL with more than 300% profit margin. In its interim report, the Auditor General has raised questions on the tendering process and conditions put to help the turnkey contractor win the contract. The performance audit has also pinned the blame on the contractor for the shoddy work. Despite these damning allegations, the fact that the scheme has now been officially closed points to connivance at high levels in the government.
The same turnkey contractor was awarded the ERP project under Integrated Power Development Scheme (IPDS), despite the contractor not having past experience in implementation of ERP project. The then Chief Engineer (RE) UN Madan changed the terms and condition and helped the contractor to participate in the tendering process. Interestingly, three bids were received but Madan mentioned that bids should be submitted both in online and offline mode, and he rejected the other two bids as their submission was delayed by one day (all this happened during the first COVID wave). He awarded the contract to Satnam Global on a single bid without competition.
Similarly, Madan helped in modification of terms and conditions and technical specification of the smart meter project to help the same contractor. In the smart meter project also, contract was awarded to Satnam Global on a single bid without competition despite the contractor having no experience of smart metering in the past.
In the case of smart meters, the then CMD, Arunkumar Kembhavi had sought the opinion of the Advocate General who had given green signal in awarding the tender. One of the independent directors had resigned from the post questioning the CMD’s decision and protesting against Satnam winning the bid in smart meters.
It was earlier reported by the media that under ERP Scheme Satnam Global had supplied sub-standard materials like desktops computers with table and chair at an astronomical figure of 3.36 lakh per set in 2021. The computers, it is alleged, are not brand new but are assembled pieces. Insiders say, more than 25% of them are not in working condition presently.
Similarly, in the smart meter project the company is supplying the smart metering software at Rs 67 crore plus Rs 23 crore for 24 months maintenance, totalling a whopping Rs 90 crore exclusive of GST. Interestingly recently one Central Public Sector Undertaking (CPSU) from Delhi Telecommunications Consultants India Ltd (TCIL) offered the same software for a fraction of the cost at just Rs 8 crore. The entire MeECL establishment is aware of this but speak in hush-hush tones. It is learnt that the reason for this secrecy is the fear of getting transferred to Garo Hills.
Associations have been demanding scrapping of the project citing exorbitant costs and poor implementation. They have suggested that it be given to Energy Efficiency Services Ltd (EESL), a PSU under National Smart Meter Program which does it free of cost. Sources in the Power Department say that Chief Secretary, MS Rao had raised concern about the smart metering project and the exorbitant price quoted by the company for the software provided but no action has been taken by MeECL till date. Most likely the matter is suppressed by the management.
The Chief Secretary had also said that since Satnam participated in the tendering along with a Chinese company and since national security is involved, the project should be vetted by the Central Electricity Authority. That too is pending, sources in the MeECL say.
As a reward for his loyalty UN Madan’s service was to have been extended for another year but thanks to the active associations and unions, this proposal was later dropped. However, the Government rewarded Madan by appointing him as OSD to the Power Minister.
There are speculations that Director (Distribution) Mohan Chettri and Chief Engineer (RE) SB Umdor who are due to retire next month are being tipped for absorption in the Power Department in some cushy positions.
The Contractors’ and Suppliers’ Association is miffed with Satnam Global for cornering all payments from MeECL when small time contractors have to wait for years for their meagre payments. A local contractor speaking to this daily said, “By cornering all contracts at exorbitant rates Satnam is snatching our daily bread when we too can execute similar projects at a fraction of the cost.”
The contractors allege that Satnam Global sub-contracts the work to local contractors at petty rates thus taking away huge margins for itself. An employee of Satnam Global is constantly found loitering in the corridors of MeECL and giving orders to senior engineers.
The thorny issue now squarely rests with the newly-appointed CMD, Rebecca Suchiang who views on the matter could not be ascertained.
This daily recently conducted an investigation on how the MDA government constituted “independent inquiry committee” into the allegations of corruption within MeECL is just an eyewash and how the members of the committee were handpicked by the contractor and minister.
An engineer who did not wish to be named said, “It is surprising that the MDA constituents are silent on these series of scams. If the MDA partners care for the welfare of the state and people, should they not demand for a third-party investigation like CBI? Silence only means connivance.”
