SHILLONG: The CAG reported large scale irregularities in the construction of the modern abattoir at Mawlai Mawiong which led to avoidable liability of Rs 15 crore towards assistance forgone and payment of interest and repayment of loan.
According to the CAG report tabled in the House on Thursday , the project also incurred a wasteful expenditure of Rs 8.18 lakh on preparation of detailed project report. The Animal Husbandry and Veterinary department also extended undue financial benefit of Rs 6.36 crore to the consortium.
As per the report, the department invited tender for providing consultancy for updating DPR and preparation of tender document and other reports for the project but the reason for updating the DPR was not available on record.
Based on the bids received, the department awarded the consultancy work to RGI, Chennai for a fee of Rs 7.20 lakh and signed an agreement with the firm in January 2010. As per the terms of reference (TOR) which formed the part of the agreement, the consultant was to be a professional entity without any kind of tie up with any manufacturer/contractor.
Later, tender inviting bids for construction of the project were floated in May 2010 by the department and in response two bids were received. The tender committee of the department recommended selection of the lowest bid of Rs 21.67 crore offered by the consortium of M/s Rishan Rapsang, Shillong for awarding the contract which included RGI Chennai, the consultant of the project as one of its members.
The report observed that even though while awarding the consultancy work for updating the DPR and preparation of tender documents the department had put a condition that the consultant was to be a professional entity without any kind of tie up with any manufacturer/contractor, it failed to exercise the same diligence to incorporate a condition in the tender to bar the consultant from being a part of the manufacturer contractor for the project.
“Though there was clear conflict of interest, RGI, Chennai was allowed to participate in the bidding process and become a part of the turnkey project as member of the consortium to which the work was allotted,” the report said.
In addition, the Ministry of Food Processing Industries had even instructed the department to replace both the consultant and turnkey contractor since it was highly unethical for the same company to be contractor as well as the project management consultant but the State Government refused to comply with the directive on the ground that Government of India has no such authority to direct the State Government.
“Even after four years of awarding the turnkey project to the consortium and an expenditure of Rs 15.82 crore up to August 2014, the objective of having a modern abattoir to produce meat in a hygienic way and have pollution control devices for treating the liquid and solid wastes generated has not been achieved,” the report said.
On the actual progress of the work, the CAG report said that the actual progress of the work was only 78 per cent contrary to the claim of the consortium in July last year that 95% of the work was completed.
