THIRUVANANTHAPURAM: Kerala Public Works Minister P K Basheer on Thursday told the Assembly that the government would consider a detailed investigation into alleged financial irregularities and official lapses linked to the suicide of the project manager of PATI BEL, the company that executed the MC Road project.
Basheer said the Vigilance Department had earlier investigated the allegations. The government would examine the available report and take necessary action following complaints that the files had been closed without completing the probe. He added that the Vigilance and Anti-Corruption Bureau (VACB) was yet to submit a fresh preliminary inquiry report.
The issue comes amid allegations of large-scale financial irregularities in road projects implemented under the Kerala State Transport Project (KSTP), including claims that the government suffered a loss of around Rs 700 crore because contracts were awarded at rates substantially higher than estimated costs.
According to a statement issued by the minister, a road improvement project estimated at Rs 787 crore was tendered for Rs 1,209 crore. Another contract worth Rs 343 crore was awarded against an estimate of Rs 244 crore. Land acquisition and rehabilitation costs also came under scrutiny, with Rs 323 crore spent against an estimate of Rs 187 crore.
A 2004 report of the Comptroller and Auditor General (CAG) had pointed to a loss of Rs 84 crore due to increased tender rates. Other allegations included the appointment of a foreign consultancy for Rs 50 crore instead of using state-level consultancy agencies and the release of mobilisation advances before contracts were signed.
PWD officials were also accused of demanding Rs 2 crore to clear contractors’ bills and approving payments without proper scrutiny. The monitoring committee overseeing the projects was accused of failing to discharge its responsibilities effectively.
Basheer was responding to questions raised by B P Gopakumar, Rajeev Chandrasekhar and V Muraleedharan.
Poor road conditions, alleged irregularities and recurring construction defects on KSTP roads also came up during Thursday’s question hour. MLAs raised concerns over accident risks and contractors’ failure to rectify defects during the defect liability period.
Basheer said the government would take strong action against contractors for lapses in road projects.