VIJAYAWADA: With the Central Bureau of Investigation (CBI) not proceeding ahead with the investigation into the alleged irregularities in the AP State FiberNet Limited (APSFL), the State government on Sunday ordered a probe by its Crime Investigation Department (CID) into the 'anomalies' in finalising the tender by the APSFL during the previous TDP regime.
The government also ordered a CID probe into the alleged siphoning of funds by a 'network of companies' from the AP State Skill Development Corporation (APSSDC) by submitting bogus invoices.
With respect to the APSFL, the State cabinet, which met on June 11 last year, had decided to order a CBI probe into the alleged irregularities in the tendering process and execution of the APSFL project and accorded consent to the premier investigating agency to initiate probe.
With no response from the CBI, Chief Minister YS Jagan Mohan Reddy during his multiple visits to Delhi to meet Union Home Minister Amit Shah had sought the latter's intervention in expediting the probe by the CBI.
The alleged corruption in the project, as per the Cabinet Sub-Committee (CSC) report, ran into Rs 200 crore. The project was meant to provide Internet and telephone services to all households in the State.
The cabinet decided to order a CBI probe based on the report submitted by the CSC headed by Finance Minister Buggana Rajendranath, which looked into the allegations of irregularities in the project. In its report, the CSC found that the previous government handed over the project to Vemuri Harikrishna, a close aide of former Chief Minister N Chandrababu Naidu, who was accused of stealing EVMs.
The report also found that the tender was awarded to Tera Soft, even though it was not the lowest bidder and did not have the eligibility to execute the project.
The previous government also preferred Tera Soft for monitoring purpose also even as a Central agency had come forward to monitor the execution of the project and quoted the lowest bid. Further, the CSC also found irregularities in the procurement of set top boxes for the project.
The government asked four companies to supply STBs and preferred to procure the boxes from Tera Soft alone. With more than one year lapsing after seeking a CBI inquiry, the government ordered the CID to probe the irregularities.
According to the order issued by Energy Secretary Srikant Nagulapalli, the decision was taken following a letter written by the Chairman of APSFL.
"The Chairman, APSFL, submitted a report on the alleged irregularities in finalising a tender in favour of the contractor and requested the government to entrust the case to the investigating agency for a detailed inquiry preferably by the CID. After careful examination of the matter, the government decided to entrust the case to the CID for a detailed investigation into the said irregularities," the order said, directing the ADGP of CID to conduct the probe and submit a detailed report to the government.
It may be recalled that soon after taking charge as the APSFL Chairman in January this year, YSRC leader P Gowtham Reddy alleged irregularities by TDP chief N Chandrababu Naidu and former IT minister Nara Lokesh to the tune of thousands of crores of rupees and said that they would be exposed.
"The probe was ordered based on the initial report submitted by me. I will submit a detailed report in the coming days. All those leaders, small and big, and officials would have to face action," Gowtham Reddy said, adding that there is prima facie evidence that irregularities were committed.
The government also ordered a CID probe into the alleged diversion of funds to the tune of Rs 241 crore through various shell companies. Skill Development and Training Department Principal Secretary G Jayalakshmi, in a memo, said the forensic audit by the APSSDC, in a report on the Siemens Project concluded that Designtech and Siemens reportedly diverted funds through various shell companies.
"The report revealed that Designtech and Siemens have utilised only the government contribution of Rs 370.78 crore, which is in contrary to the original scheme. It has also been brought to the notice of the government, by the Central government agencies that a network of companies siphoned off funds from the APSSDC through a bogus invoicing scheme pertaining to Siemens project," the memo said, adding the CID was asked to probe the alleged diversion of funds by Designtech and Siemens based on the reports submitted by the APSSDC.
"The CID probe was ordered by the government based on the initial report submitted by me. I will submit a detailed report in the coming days," said P Gowtham Reddy, Chairman of APSFL