The Comptroller and Auditor General’s report on Local Bodies for the year ending March 2012 revealed that a contractor entrusted with execution of Under Ground Sewerage System (UGSS) during the DMK regime had made a gain of `2.09 crore without even doing any work.
The CAG report, tabled in the Assembly on Wednesday, stated that IVRCL Infrastructures and Projects Limited had been entrusted with the execution of UGSS in Tiruvannamalai and Tiruvallur municipalities in 2007 and 2008 respectively. In contravention of the bid and agreement conditions, IVCRL sub-contracted the projects to VVV Constructions Limited.
The government and the contractor had agreed upon `12.44 crore as the price for providing sewage collection system, construction of life station and supply of non-clog sewage submersible pump sets to Tiruvannamalai Municipality zone II A under phase I of package I on December 1, 2007. However, IVCRL sub-contracted the project to another firm for `11.26 crore.
Similarly, `7.52 crore was agreed upon as the price for giving shape to the scheme in Tiruvallur Municipality Zone III under package II on September 24, 2008. This project was also sub-contracted for `6.61 crore, pegging the total benefit of IVRCL to `2.09 crore without having done any work.
The report mentioned the response of the State government that it was examining the issue of sub-contract and that the violation of provisions by the main contractor would be dealt with in accordance with the bid conditions, including recovery of undue benefits.
Observing that incorrect selection of site for Sewage Treatment Plant (STP) in Thiruvallur under UGSS resulted in refusal of permission to use poromboke land, the report said the collection system under the scheme taken up in September/December, 2008, was near completion but the cost had risen to `27.95 crore.
