BERHAMPUR: Another tranche of Rs 86 lakh has been paid to Chennai-based L&T company for operation and maintenance (O&M) of the incomplete Janibili mega drinking water project which has been lingering for the last one decade.
The payment was made to L&T by the Public Health (PH) Division (project) by disregarding the objection raised by Principal Accountant General (AG) over the award of Rs 5 crore to the company for O&M of the drinking water project in January this year.
Of the total Rs 86 lakh, a bill amounting to Rs 64 lakh was signed by junior engineer and assistant executive engineer of PH Division (project). Similarly, another bill of Rs 22 lakh was signed by the managers of WATCO.
Sources said while the Janibili project was not yet completed, another project ‘Improvement of water supply to Berhampur Municipal Corporation’ was created in 2015. The superintending engineer of PH division, Berhampur was the drawing and disbursement officer and vested with the responsibility of implementation of the project along with O&M of water supply infrastructure in BeMC limits under state funding.
According to the audit of AG, the project received Rs 64.71 crore from 2017 to 2021 of which Rs 60.48 crore were spent. In 2016-17, ‘Improvement of water supply to greater Berhampur’ project was awarded to L&T for `431.30 crore of which Rs 372.60 crore was meant for construction works and Rs 58.69 crore for O&M cost.
As per the agreement signed by L&T, the contract firm was supposed to operate and maintain the water supply project for a period of five years commencing from the date of issue of provisional certificate of completion of construction.
As per the agreement, supply of water to BeMC limits was the lookout of L&T and the engagement of PH and WATCO staff was not required. However, full-fledged staff of PH and WATCO were engaged in water supply which was the responsibility of L&T. If L&T carried out the entire project work and was paid `5 crore towards O&M, what were the staff of PH and WATCO doing?
In reply to the audit report of AG, the superintending engineer stated that L&T started O&M of the project on direction of Odisha government from March 3, 2019. The Rs 5 crore was paid towards the service provided for greater benefit of the urban populace of BeMC and it may not be treated as irregular.
However, the AG office described the reply as not tenable since the project was not completed.