Corruption in MTDC at cost of tribals >
Financial Rules Flouted To Favour Contractors
Source: Hueiyen News Service

Imphal, June 30 2015 : The latest report of Comptroller and Auditor General of India has exposed the untrammeled flouting of financial rules in Manipur Tribal Development Corporation Ltd (MTDC) which is for the general welfare of the tribals.

What is shocking is that precious nothing was done to take recourse to legal redress despite the fact that the pampered contractors/suppliers had failed to lift and deliver the items or execute the works although the obliging officials and ministers had paid 100 per cent advance to them.

The rule says that in exceptional cases just 30 per cent of the contract values can be paid.

Even this payment should be safeguarded in the form of Bank Guarantee.

The CAG report says that in July 2010 the MTDC had placed supply orders worth Rs 2.35 crore to two Guwahati based firms for supply of steel and cement.

It further awarded the contract work for lifting and delivering the items to M/s ISS Transport Agency, Imphal at an estimated cost of Rs 1.44 crore.

The agency should complete lifting the items within 45 days failing which it should pay one per cent of the contract value for each day of delay subject to 10 per cent of the total contract value.

The CAG reports said that the MTDC had released 100 per cent of the contract value amounting to Rs 2.35 crore as advance.

It was in contravention of all rules governing it.

Besides materials worth Rs 1.28 crore were delivered while the remaining items worth Rs 1.07 crore were not delivered even after 874 days when the audit was done.

Except for serving a perfunctory show cause notice no concrete actions were taken up against the agencies.

What is more, the MTDC paid Rs 73.88 lakh to the transporter which is in excess of Rs 13.78 lakh.

The MTDC said that all deliveries were made.

But the CAG said that it is not tenable since most of the items have not been delivered.

The CAG report also pinpointed the release of Rs 50 lakh as interest free Mobilisation advance to a contractor.

The MTDC had signed an MoU with the Health department in December 2010 for the construction of a nursing and mid wifery school in Tamenglong and the contract with a value of Rs 3.34 crore was awarded to a local contractor.

Rs 50 lakh was paid in November and December 2014 as the advance.

The CAG report said that the payment cannot be made though the MTDC justified it saying that it is to avoid delay in the procurement of the construction materials.

In any case the construction work could not be started till December 2014 .

The irregular payment was made for the benefit of the contractor, the report remarked.

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