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CWG scam | Equipment for overlays hired at 1400% higher cost: CVC

CWG scam | Equipment for overlays hired at 1400% higher cost: CVC
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First Published: Sun, Mar 13 2011. 04 36 PM IST
Updated: Sun, Mar 13 2011. 04 36 PM IST
New Delhi: Officials of Commonwealth Games Organising Committee had hired equipment for overlay works at over 14 times the actual price, a CVC investigation has found.
The CVC, in its report to CBI on overlays scam, has said that the committee had taken equipment on rent at an inflated Rs42.34 crore (over 1,400% higher) against the actual cost of Rs2.80 crore, thus giving undue benefits to the companies.
Besides, the investigators of the anti-corruption watchdog have found indications of collusive bidding, cost of renting items far higher than the cost of procurement, unreasonably high rate on supplied items, double payment and inferior quality in the overlays work.
The OC had given overlays contract of Rs687.86 crore to four firms -- M/s Pico Deepali Overlays Consortium, Delhi, M/s Nussli (Switzerland) Ltd, Switzerland, M/s ESAJV:D Art:Indo Consortium, New Delhi and M/s GL-Meroform, France. The work included managing temporary structures like tents, video boards, furnitures and fixtures, generator sets among others at 62 venues (23 competition venues, 32 training venues and 7 non competition venues) grouped in seven clusters.
In its internal report, copy of which is available with PTI, CVC also said there was “no cooperation” from OC officials in furnishing documents, clarifications and information during its probe in the alleged scam.
“Instead of furnishing specific replies to the queries...they (OC) have sent voluminous documents without indicating their relevance. Site visits were futile as no document was available, and none of the officials available at site could explain the detailed methodology for verification and recording of measurements of supply, installation, testing and commissioning of various items of the overlays work,” the report said.
It said initially, a tentative estimate of Rs400 crore on account of overlays had been made. Subsequently, a cost estimate of Rs948.52 crore was prepared by the OC. This was brought down to Rs687.86 crore (including Rs58.90 crore for Image and Look, Rs54 crore for TSR and network switches etc, and Rs40 crore for contingencies).
Officials of the probity watchdog found that there were discrepancies in choosing the companies for awarding works. Some of the companies did not meet pre-qualification criteria.
Citing indication of collusion bidding, the report said, “Bidders were asked to submit cluster-wise prices. Bidders have quoted different prices for different clusters for the same items.”
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First Published: Sun, Mar 13 2011. 04 36 PM IST