THIRUVANANTHAPURAM: Deficiencies in project planning, deviations from contractual provisions and irregular payment arrangements in roadworks under the Rebuild Kerala Initiative (RKI) resulted in undue financial benefits to contractors and an increased financial burden on the State, according to a Comptroller and Auditor General (CAG) report.
The audit of roadworks implemented by the Kerala State Transport Project (KSTP) found shortcomings in the preparation of detailed project reports and bidding documents, changes in project designs and scope during execution, and violations of contractual conditions.
The findings raise questions about the oversight of a major reconstruction programme launched after the devastating floods and landslides of 2018.
Under the initiative, 29 roads spanning 718.94 km across 13 districts were selected for reconstruction during 2019–20 and 2020–21, at a sanctioned cost of Rs 5,119.54 crore. The CAG examined 10 of the 29 roadworks as part of its compliance audit.
One of the major findings concerned the upgradation of the Alappuzha–Changanassery (AC) Road. The audit identified an undue benefit of Rs 39.27 crore to the contractor following deviations in the procedure for approving changes to bridge-widening works.
A further Rs 28.22 crore in undue financial benefit was attributed to the splitting of payment stages for earthwork and ground-improvement works. In certain cases, the revised payment arrangement enabled disbursements between 333 and 911 days ahead of the scheduled completion of the relevant stages.
The report also flagged violations of procurement conditions in the Uruvachal–Maruthayi road project. The contract, awarded for Rs 100.43 crore in October 2020, was entirely subcontracted for Rs 93.67 crore in August 2021, contrary to the agreement conditions.
The audit observed that this undermined the tendering process, which required bids to be considered from contractors who had qualified through technical evaluation.