Mail News Service
Imphal, July 20: The CAG referring to MOBC said there were irregularities in tender processing by ignoring the lowest bidder, non-maintenance of transparency and lack of strict economy led to a loss of Rs 14.80 lakh.
As per Rule 21 of the General Financial Rules, 2005, every officer should enforce financial order and strict economy and exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money.
To eliminate arbitrariness in procurement process, clause (xiv) of Rule 160 of the Rules ibid stipulates that contract shall ordinarily be awarded to the lowest bidder whose bid has been found to be responsive and who is eligible as per bidding documents.
Test-check of the records (January 2011) of Minorities and Other Backward Classes Department revealed that the Work Advisory Board of the Department approved (June 2009) an expenditure of Rs 1.87 crore for purchase of 585 Irrigation Pumps on a tentative basis.
Accordingly, the Directorate called (October 2009) for a limited tender from five suppliers, calling only for rate quotation for supply of 5 H.P Diesel Engine Irrigation Pump set. However, no specifications in terms of type, quantity etc. of pumps were mentioned in the tender notice. As per Rule 150 of the Rules ibid, procurement of goods of value of Rs 25 lakh and above should be made through open tender and not through limited tender as was done by the Directorate. No reasons for deviating from this procedure were available on record. Further, such notice also needed to be advertised inter alia on the website of the organisation, which was not also done.
Out of the four suppliers who responded to the tender, the rate quoted by M/s Rajesh Associates for “Usha” brand pumps was the lowest one (L-l) at Rs 30,617 per pump sets while that of M/s United Machinery Corporation for “Satyajeet” brand was the second lowest (L-2) at ^ 33,250 per pump sets. However, instead of considering L-l, the Directorate decided (February 2010) to place supply order for 562 pumps to L-2 on the ground that L-l had not mentioned the name of the model under the Usha brand in his quote. The Department stated (August 2011) that L-l was contacted over phone for clarification.
However, no response was obtained. However, no documentary evidence was shown to Audit to substantiate such claims. Therefore, in the absence of appropriate documentation in the file, it could not be ascertained as to why L-l was not considered.
As per the NIT, there was no such requirement of quoting the model of the brand, the ground on which the Department preferred L-2 over L-l. As such, the decision to place orders on L-2 was taken on flimsy ground and without following the established codal procedure. The selection process also indicates that the exercise was devoid of strict vigilance and economy. M/s United Machinery Corporation supplied (March 2010) all 562 pumps and total amount ofRs 1.87 crore was paid (March 2010) to the firm.
Thus, there were many irregularities in the tendering processing, viz. opting for a limited in place of open tender, not placing the tender on the Department’s website, and preferring L-2 over L-l without any justification. These irregularities in the tender process led to extra expenditure amounting to Rs 14.80 lakh {(Rs 33,250-Rs 30617)x562} and consequent loss to the Government to that extent.
The matter was referred to Government (July 2011), the reply has not been received (March 2012).Violation of contractual obligations, undue benefit to contractors, unavoidable/ unfruitful expenditure etc.
Read more / Original news source: http://manipur-mail.com/irregularities-in-tender-processes-in-mobc-department-cag/
