The Lake And The Fake Firm

By:- Kunal Mazumdar (From Tehelka) *

Why was a Rs 224-cr project to clean up Manipur's Loktak Lake given to a ghost outfit, asks Kunal Majumder.

At a grandiose function in Imphal on January 6 this year, Manipur Chief Minister Okram Ibobi Singh handed over the ceremonial keys of the Rs 224 crore-Loktak Lake clean-up project to representatives of a company that does not exist.

On paper, K Pro Infra Works Private Ltd, which won the contract, has a Delhi address. But on the ground, Flat No A-104, Plot No 29 (New Friends Apartment), Sector 6, Dwarka, is a private residential property with no one currently living in it. Guards at Plot No 29 say a lot of people visit the flat, though it is not known who these itinerant visitors are. "They stay only for a few days," said one of the guards who asked not to be named. Significantly, while the address of K Pro Infra Works figures in the Ministry of Corporate Affairs website, information like the "company" website and its phone number is missing.

Friendly HQ: K Pro Works' address is actually a residential apartment Photo: TARUN SEHRAWAT

The clean-up project involves removing 132.94 lakh cubic metres of phumdis - the local name for the thick biomass that is filling up the largest fresh water lake in the Northeast, around 40 km from Imphal.

Deferring to an age-old ritual, the 62- year-old Ibobi Singh watched a K Pro Infra Works dredger scoop out the phumdis and load the waste onto a truck - after which he left. And the photo-ops over, so did the dredger, the trucks and the representatives of K Pro Infra Works.

But considering it was registered only on June 22, 2009 and has a paid-up capital of just Rs 10 lakh, it must be asked how the "company" managed to buy dredgers costing Rs 40 lakh each.

A press release of the Loktak Development Authority (LDA) claims that K Pro Works Private Limited (the word 'Infra' dropped) is a joint venture with Progressive Constructions Limited which posted a gross turnover of Rs 1019.91 during 2007-08. It isn't clear whether this is a typing error or the real figure, as neither the company nor LDA is willing to comment.

Okram Ibobi Singh, CM of Manipur Photo: SHAILENDRA PANDEY

The other puzzle is that while Ibobi Singh cut the red ribbon on January 6, the on-paper process of cleaning up the lake had started nearly two years ago. This was the same period - spanning 2008-09 - when the Planning Commission made a Special Plan Assistance (SPA) of Rs 25 crore to Manipur for "conservation and management of Loktak Lake and associated wetlands".

In the progress report submitted to the Planning Commission (a copy of which is in TEHELKA's possession) the Project Director of Loktak Development Authority (LDA), Thounaojam Ibobi Singh, claimed that Rs 16.5 crore was given to K Pro Infra Works Pvt Ltd as "mobilisation advance" for phumdi management.

But the lie is easily nailed. For again, how can a contract be given in financial year 2008-09 (that ends on March 31, 2009) to a company that was founded in June 2009? The final Utilisation Certificate issued by LDA shows that, in all, Rs 17.8 crore has so far been spent on phumdi, water and project management and administration; and the remaining Rs 7.2 crore on conservation and the management of Loktak Lake and associated wetlands.

NOT ADDING UP
Total Project Cost: Rs 224 Cr
Amount Sanctioned By Planning Commission: Rs 90 Cr
Paid-up Value Of K Pro Works: Rs 10 Lakh
Advance Paid To K Pro Works: Rs 16.5 Cr
Cost Of A Single Dredger To Clean The Lake: Rs 40 Lakh

On November 20, 2009, DS Poonia, Chief Secretary in the Manipur government, had sought an additional Rs 65 crore for the project from the Planning Commission under the Special Plan Assistance 2009-10. Sarvan Kumar, Director, Special Plan-North East at the Planning Commission, confirmed to TEHELKA that the amount requested had been sanctioned. Poonia's letter to SN Brohmo Choudhury, Adviser, Special Plan (North-East), Planning Commission, reveals that the Commission had sought detailed information on the project.

Among other things, it had wanted to know the steps that had ben taken to engage an accredited institution for third party monitoring. It was also suggested that the government too should closely monitor the project work and submit its reports to the Planning Commission.

The government's response was depressingly familiar. It merely set up two committees to "look into the matter".

Murky waters Floating biomass in Loktak Lake; Photo: L Lokendra Singh

Indeed, all the paper trails and local media reports point strongly at the possibility of a major scam brewing in Imphal. Coincidentally, even as this report was being filed, a senior Manipur Cabinet minister was in Delhi at the invitation of the Congress leadership to discuss with Rahul Gandhi the corruption charges against the CM, and how the list keeps getting fatter.

Requesting anonymity, the minister said: "I did present evidences to various senior Union ministers and party leaders about the way the Chief Minister is minting money in the state." He even alleged that K Pro Infra Works was actually owned by a top politician's 'natural' son.

Repeated attempts to get a response from the Chief Minister failed. Diana Potsangbam, press officer of LDA, said the project director, Thounaojam Ibobi Singh, could not speak till he had the consent of the CM and directed this correspondent to check LDA's website www.loktak.org. Which is in Russian! Now how does one interpret this?

*** This is an original article as published in Tehelka Magazine, Vol 7, Issue 13, Dated April 03, 2010
Link here .
All necessary permission were taken from Shoma Chaudhury, the managing editor of Tehelka and the writer Mr Kunal Mazumdar
by Babina Wahengbam & Oinam Khuman Ngakpa - Hat tip to both!
- Team E-pao

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* Kunal Mazumdar wrote this article for Tehelka Magazine (From Tehelka Magazine, Vol 7, Issue 13, Dated April 03, 2010 ) . The writer can be contacted at [email protected]
This article was webcasted at e-pao.net on 27th March 2010.

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