HYDERABAD: The Justice PC Ghose Commission report on Kaleshwaram held former chief minister K Chandrasekhar Rao directly responsible for irregularities in the execution of the project, stating that there was no basis for shifting the source from Tummadihatti to Medigadda.
The Commission also found fault with the then irrigation minister T Harish Rao, the then finance minister Eatala Rajender, retired chief secretary SK Joshi, then finance secretary K Ramakrishna Rao and IAS officer Smita Sabharwal.
It may be recalled that the state government had earlier released a 60-page summary of the report to the Cabinet. On Sunday, it tabled the full 665-page report in the Assembly, following which a fiery debate on its findings took place.
The report recommended a probe into the manner of raising and disbursing loans by KIPCL and identifying the ultimate beneficiaries. It said the scrutiny of bills submitted by agencies, including price adjustment claims, must be examined in depth.
The Commission noted:
The CM could be held directly and vicariously accountable for irregularities in planning, construction, completion, operation, and maintenance of the three barrages.
While the political executive lays down policy, its implementation lies with the administration.
The then irrigation minister issued instructions “at random”, while the finance minister displayed “apathy” towards the financial health of the state.
“It is the sole decision of the then chief minister from the stage of conceptualisation of Kaleshwaram project, allegedly as part of re-engineering of the Pranahitha-Chevella project, to take up construction of three barrages.”
The Commission concluded that the ex-CM’s detailed involvement in planning, construction and operation led to irregularities and distress at the barrages.
Ignoring expert advice
The report said the high-power committee of the government did not recommend construction at Medigadda. It noted that KCR and Harish Rao ignored the expert committee’s report.
The Commission also found that the then government granted administrative approvals and entered into agreements without applying to the Central Water Commission (CWC) for vetting the Detailed Project Report (DPR).
The proposal to construct barrages at Medigadda, Annaram and Sundilla, the report stated, was not that of the Cabinet sub-committee. It was the then CM who directed the Expert Committee to study the plan, it stated.
The report concluded that neither the Cabinet nor its sub-committee discussed Kaleshwaram. The panel observed that if CWC’s March 2015 objections prevented construction at Tummadihatti, the same objections applied to Medigadda.
Suppression of reports
The report said that SK Joshi and Engineer-in-Chief C Muralidhar Rao failed to mention the Expert Committee’s constitution in their evidence. Their silence, it added, was “inexplicable” and their conduct “not fair”.
It noted that Joshi, Muralidhar and B Hari Ram suppressed the Expert Committee report “with malicious intention” to allow the CM and irrigation minister to proceed with Medigadda’s construction.
Findings on ministers
Commission cited Harish Rao’s statement that the Finance department only dealt with budgets while KIPCL raised loans and Irrigation dept managed accounts. The report said this reflected “ignorance” of the fact that a Budget is a financial statement of revenues and expenditure.
It said the then finance minister Eatala Rajender and finance secretary K Ramakrishna Rao “remained oblivious” to the financing of the barrages and Kaleshwaram project. Their conduct, it added, showed a lack of commitment to protecting Telangana’s financial health.
Syphoning funds
According to the report, the Irrigation and Finance department officials failed in their duty of oversight, instead facilitating unlawful gains by siphoning public money under the guise of construction.