Graft charge against Lakshadweep company in tuna unit modernisation

KOZHIKODE: The Lakshadweep Development Corporation Limited (LDCL) has landed in a big corruption mess after Lakshadweep Matsya Thozhilali Union-CITU has approached the  CBI seeking a detailed probe into LDCL’s Rs 33 crore project to modernise the tuna canning factory at Minicoy island in Lakshadweep in 2009.  The Union has filed a  plaint that the LDCL officers caused a loss of crores to the government by taking up the project.

Union president Mohammed Nazeer told the Express that it was in 2009 that the LDCL decided to modernise the factory to increase the daily production capacity from 1,500 tuna cans to 10,000 tuna cans. “The project was taken up for receiving kickbacks from a Thailand-based company which ended up as the sole bidder for supplying and installing the plant and machinery worth crores,” he alleged and added the machine and plant were imported in a haste even before completing the required infrastructural facilities.

“For the last five years, they are lying idle in an open space,” he added.  

As per the records, it was based on a detailed project report in August 2010 that the Ministry of Commerce sanctioned `3.24 crore for modernisation of the factory while the Department of Fisheries allocated `4.20 crore for civil works necessary for installing new machinery.

 Based on the 84th board meeting on September 1, 2010, a schedule for implementation of the project was charted out and LDCL was entrusted to ensure that Lakshadweep Public Works Department (LPWD) completed the civil works by March 31, 2011 and the machinery was installed in the building by June 30, 2011 to make the factory ready for operation by August 1, 2011.  A global tender was floated on September 23, 2010 for purchasing the machine. As only one bid was received, a re-tendering was conducted in which two companies participated. However, one party did not submit the required EMD and hence was disqualified.  Finally, tender was awarded to Thailand-based Patkol Public Company Limited.

On July 21, 2011, a purchase order was placed with Patkol Public Company Limited for supply, installation and commissioning of the Tuna Canning Plant having processing capacity of  five tonnes tuna fish per shift of  eight hours   for an amount close to Rs seven crore. Patkol shipped the machinery to Kochi vide their Invoice No.32580045 dated February 23, 2012. The plant and machinery reached  Minicoy in May, 2012.   “Inspite of repeated reminders to LDCL and Fisheries Department, no action was initiated to install the machine and plant which have been lying outside the factory in rain and sun for the last four years. Now the LPWD arranged to cover the machinery lying outside the factory with aluminium sheet for protecting it.

When contacted, LDCL present Managing Director Reuben Mathew Jacob said they had communicated to LPWD to finish the construction works as soon as possible. “The LPWD has to finish the works. I believe the project got delayed because of various logistics issues and manpower shortage. We are looking into it,” he added.

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