SHILLONG, Jan 5: The Comptroller and Auditor General of India (CAG) has highlighted several irregularities in project awards and a lack of adherence to tendering procedures by the Khasi Hills Autonomous District Council (KHADC).
The CAG report for the financial year ending March 31, 2019, tabled during the Council’s winter session in December, showed details of deficiencies in the tender process for multiple works initiated by the KHADC. It noted that the Council had invited tenders for these projects on December 29, 2017. The eligibility criteria in the Notice Inviting Tender (NIT) required bidders to quote their rates for the works they were bidding for, but significant lapses were observed.
One major project scrutinised was the construction of the Traditional Cultural Centre at Umiam, Jingkieng Kalong, with a tender value of Rs 750 lakh. The contract was awarded to M/s Rodeka Enterprise in January 2018. The audit found that none of the three bidders quoted rates, yet the project was awarded to Rodeka Enterprise at Rs 750 lakh without any explanation for the contractor’s selection. To date, Rs 587 lakh has been spent on the project, but the work remains incomplete.
Another project involved the construction of fencing at the KHADC campus, with a tender value of Rs 20 lakh. This contract was awarded to A Rynjah in January 2018. The audit noted that, as in the previous case, none of the bidders quoted rates. Despite this, the project was awarded to Rynjah at Rs 20 lakh without any documented justification. The fencing work, however, has been completed.
The construction of a residential quarter at the Nongpoh Branch Office was another case of irregularities. The project, with a tender value of Rs 40 lakh, was awarded to J Nongsiej in January 2018. The report revealed that no bids were received for the work, but it was still awarded to Nongsiej at Rs 40 lakh without recorded reasons. The work on this project has also been completed.
The improvement and repair of the Wahkaji-Mawthabah road, with a tender value of Rs 130 lakh, further illustrated the lack of compliance. This project was awarded to two contractors, H Kharphuli and Dundee C Khongsit, with the work split equally between them at Rs 65 lakh each. The audit observed that only one of the bidders, Kharphuli, quoted a rate (at par), while Khongsit failed to quote any rate. No reasons were provided for splitting the work or awarding it to Khongsit despite the lack of a valid bid.
The CAG observed that these instances demonstrated poor adherence to tendering requirements. Projects were awarded despite the absence of valid bids, and in some cases, no bids were received at all. The audit suggested that intentional favoritism toward specific contractors could not be ruled out.
In response to these findings, the Secretary to the Executive Council of the KHADC explained in August 2022 that the Council Planning and Implementation Committee (CPIC) considered the bidders’ rates to be “at par” with the Schedule of Rates (SOR). He added that the CPIC thoroughly scrutinised the bid documents before awarding the contracts and argued that awarding the work to J Nongsiej without a bidding process was necessary to avoid delays caused by re-tendering.
However, the CAG dismissed the explanation as unconvincing. The report emphasised that the actions represented a serious violation of standard tendering protocols and underscored the need for greater transparency and accountability in awarding public works. It further suggested that these irregularities were indicative of deeper systemic issues, which were elaborated upon in subsequent sections of the report.
