The Hindu : Govt. loses Rs. 4 cr. in purchase of gates

Online edition of India's National Newspaper
Wednesday, Oct 16, 2002

Southern States

Southern States - Karnataka-Bangalore

Govt. loses Rs. 4 cr. in purchase of gates

By T.S.Ranganna

Bangalore Oct. 15. Officers in the Minor Irrigation Department of the Water Resources Ministry in Bidar have made unnecessary purchase of MS fabricated gates worth Rs. 4.83 crore and misused public funds of Rs. 3.93 crore by purchasing material at exorbitant rates.

The Karnataka Public Works Department Code stipulates that material required for work should not be purchased in advance or in excess of the actual requirement. The Stores Purchase manual prohibits direct purchase of material without reference to the Stores Purchase Department (SPD) on the rate contracts for items to be procured.

Only where no rate contract exists can material be procured through open tenders without getting sanction of the higher authority as per the delegation of financial powers. Records of the division revealed that 4,429 MS fabricated gates worth Rs. 4.83 crore were purchased by the divisional officer bypassing the SPD.

According to sources, they were purchased between April 1998 and October 2000 for fixing the outlets of the field irrigation channels (FICs) of 34 minor irrigation tanks in total disregard of the provisions in the code and instructions of the Government and the Chief Engineer.

The Comptroller and Auditor-General of India has made a mention of the irregularities in the audit report. The report said that designs were not prepared before placing the order for the gates. Instead of inviting tenders, the divisional officers obtained quotations locally and placed purchase orders by splitting the purchase at less than Rs.15,000 per order, thereby depriving the Government of the benefit of competitive rates.

As per the standard prescribed in Manual of Canal Norms of 1991, the water to be allowed through an outlet should be between 0.010 cumec and 0.028 cumec. Accordingly, the minimum area that can be irrigated through an outlet at the micro network system works out to 17.5 ha.

Considering the total command area of 9,050 ha. covered by 34 irrigation tanks, the requirement of outlet gates worked out to 520 against which 4,429 were purchased. This resulted in unnecessary purchase of 3,909 gates at a cost of Rs. 4.69 crore.

The SPD finalises the rate contract for fabricated items such as MS sluice gates on weight basis. The prevailing rate in 1999-2000 was Rs. 36.53 a kg. But, the division procured the material on the basis of quantity. Each MS gate weighing 12 kg. and a gate weighing 47 kg. were purchased at Rs. 2,600 and Rs. 14,040 each respectively. The money payable as per the rates fixed by the SPD during the period worked out to Rs. 500 and Rs. 2,600 each on the basis of the weight. Had the department purchased the gates at the SPD rate, the cost of 4,429 gates would have been Rs. 90 lakh as against Rs. 4.83 crore that was paid. It resulted in an avoidable expenditure of Rs. 3.93 crore.

The Executive Engineer, who approved the lowest rates for MS gates, did not ascertain the availability of the SPD rate nor approve the rates based on weight basis for these gates. The works of fixing of gates were not included in the programme of works for 1996-97 to 2000-2001 approved by the Superintending Engineer.

Further, fixing of gates was not provided for in the estimates.

Though the Executive Engineer periodically sought release of LOC from the Chief Engineer through the Superintending Engineer furnishing details of pending bills, they neither objected to such huge purchases nor investigated the splitting up of the orders.

The CAG concluded that by doing this, they abetted the flouting of the provisions in the code and the Executive Engineer disregarded the instructions of higher officials in purchase of material, causing loss of Rs. 3.93 crore to the Government.

Charging the officers at various levels with breaching the code while making huge purchases, the CAG urged the Government to probe the role of officers involved in the purchase and fix responsibility for the misuse of public funds. Though the matter was referred to the Secretary to the Government in July and August 2001, no reply had been received from him on taking action against the officers responsible for the misuse of public funds.

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Govt. loses Rs. 4 cr. in purchase of gates