SHILLONG: Several crores of rupees were saved by former Chief Vigilance Officer of NEEPCO Satish Chandra Verma, who probed many alleged scams and prevented execution of shady deals.
Verma in his vigilance reports and petition submitted before the Central Administrative Tribunal in Guwahati said the examinations of the records and files related to the Memorandum of Agreements (MoAs) into all the hydel projects had revealed a pervasive and disturbing disregard to fundamental financial prudence, and were found to be in contravention of the standard operating procedures of NEEPCO, and indeed any organisation.
The report alleged that it was also clear that arbitrariness and the dominating but incomprehensible will of former CMD P.C Pankaj was visible in the entire process of decision-making in each case.
Verma, after summarising his findings, had accordingly sent detailed vigilance observations by way of advisories to the concerned functional directors and copied each one of them to the then CMD for noting “the lacunae observed in the decision-making processes of NEEPCO and emphasising that systemic efforts to remedy them were imperative, in order to limit the losses to the organisation and prevent further wrongful losses.
The investigation into MoAs signed by NEEPCO with the north-eastern state governments was also concluded and the reports were sent to the Centre by the end of May 2016.
The projects which had anomalies include signing of agreement with Mizoram government for development of Tuivai Hydro Electric Project, payment of upfront money to Arunachal Pradesh Government and signing of non-approved MoA by the CMD in Siang Hydro Electric Project, Pre-Implementation Agreement (PIA) signed by NEEPCO with Manipur government for development of four hydel projects in Manipur, MoA signed by NEEPCO with Arunachal Pradesh government for development of Kurung Hydro electric project, wrongful and irregular payments of extra lead money to contractors in Kameng Hydro Electric Project.
Kameng project is in the news after the name of Union Minister Kiren Rijiju figured in the report of Verma.
Other probes included vigilance investigation into proposed works for countering the effects of acidity on Khandong and Umrong dams; Kopili Hydro Electric Project, misuse of resources in terms of irregular and excessive expenditure under the cover of advertisement and publicity, misuse of manpower, vehicles and financial resources by S. Borgohain, Director (Personnel), causing wrongful loss to the Corporation, misuse of resources in terms of unauthorised expenses under the cover of hospitality by the Director (Technical) and under the cover of security by the CMD.
The litany of abuses also include misuse and unauthorised deployment of manpower, vehicles and financial resources for the officers of the Ministry of Power, misuse of resources in terms of excess expenditure on furniture/furnishings at the residence of Pankaj, and its cover up, violation of Central Vigilance Commission directions regarding release of terminal dues of Pankaj and others.
Verma also said in his observation about the final report regarding the false complaints against then Director (Finance) AG West Kharkongor (current NEEPCO CMD) was sent on May 19 last year. It provided compelling materials for acting against Borgohain.
After more than three and a half months, on September 6 last year the Ministry of Personnel sought authentication of call detail records (CDRs) from which the analysed result was derived and Verma has provided the authentication to the CVO, NEEPCO, on September 20.
The analysis of call data records of Naba Ram Rabha and Sanjib Kalita obtained by Verma from the respective mobile service providers through the Assam Police had confirmed that Borgohain had remained in extensive contact with both these proxies to engineer the false complaints against Kharkongor.
In addition, true copies of documents showing the connect of MP Rajen Gohain (current Union Minister of State for Railways) with Borgohain, with the complaints against Kharkongor were also sent to the authorities concerned by Verma.
As per Verma’ statement made in the Central Administrative Tribunal, “There has been no action so far against Borgohain in this serious matter. And there has also not been any action on the applicant’s (Verma) final report about misuse of manpower, vehicles and financial resources by him.
Specifically, the final report submitted by Verma regarding misuse of NEEPCO resources for Union Ministry of Power officials shows that expensive gifts and goods and services were received by senior officers in the Union Ministry of Power. “Moreover, NEEPCO spent more than Rs. 20 lakh on lavish and frequent hospitality primarily of Ministry of Power officers in the period between May 2014 and March 2016.
Besides, NEEPCO spent approximately Rs 6 lakh per annum on each of the three vehicles hired for the officers of the MoP, and this has been going on for years. Such gifts, goods, services and hospitality, especially from NEEPCO with whom the MoP has official dealings, are forbidden by rule 11 of the All India Services (Conduct) Rules, 1968. In addition, there are specific orders of the Centre forbidding the use of Central Public Sector Enterprises.
Solar projects in M’laya, Assam and Nagaland
A vigilance report was prepared by Verma against the Notice Inviting Tender (NIT) for purchasing 250 acres of land in Meghalaya, Assam and Nagaland to set up solar power project by NEEPCO.
According to Verma, the then CMD was learnt to be pushing hard for somehow concluding it and purchasing the land.
The proposal, however, was resisted by the Renewable Energy wing because the potential for solar power in the North East was poor and also because it had never been the policy of NEEPCO to purchase land directly from private parties. All land hitherto was taken by NEEPCO through respective state governments.
Thus Verma had issued an advisory by way of preventive vigilance on February 16 last year regarding the NIT proposing to purchase 250 acres of land.
ERP system worth Rs. 62 crore
For setting up of Enterprise Resource Planning (ERP) system, NEEPCO had issued a tender at the cost of Rs 62 crore.
After WIPRO and HP bid for it, WIPRO was disqualified on technical grounds. The lone surviving bidder was HP whose financial bid was Rs 98 crore, which is more than 150% of the estimated cost.
The management was negotiating with HP and was inclined to award the contract while complaints were received from WIPRO in this regard.
“The negotiations with HP appeared prima facie to be in violation of the applicable directions of the Central Vigilance Commission,” the report said.
Verma also issued an advisory for preventive vigilance regarding procurement of ERP system.
Promotion of diploma engineers
The investigation into the mass promotion of 52 diploma engineers on May 1, 2014, from the rank of Deputy Manager to the rank of Manager had disclosed that there were serious irregularities in these promotions and also related irregularities in grant of higher scale grade pay, and that the manpower ceiling imposed by the Ministry of Power, was violated at the instance of the Director (Personnel) Borgohain, by the CMD. The Director (Personnel) was so perturbed by the progress in this investigation that he caused some documents submitted earlier by HR Department to Vigilance Wing to be substituted by some interpolated documents. The details are contained in the final report of the investigation by Verma.
