Date:15/12/2007 URL: http://www.thehindu.com/2007/12/15/stories/2007121555230600.htm

Kerala

Minister denies corruption

Staff Reporter

KSTP contract to Malaysian company

National Highways to be made
four-lane
Work on railway over-bridges to be completed

PALAKKAD: Public Works Minister Mons Joseph on Friday refuted the allegations of corruption raised by former Public Works Minister M.K. Muneer and other leaders of the Opposition United Democratic Front (UDF) that the government had not followed tender procedures in entering an agreement with Malaysian company Pati BEL to complete the road work under phase one of the Kerala State Transport Project (KSTP).

Talking to presspersons here, the Minister claimed transparency in the tender procedures. When other companies quoted over Rs.98 cores as extra amount, Pati BEL, which was the only World Bank-approved company among the bidders, was given the contract for Rs.74 crore. The World Bank-aided project could be given only to such approved companies. The government held several rounds of negotiations and brought down the amount considerably.

The Minister said the alleged Rs.120-crore loss to the State exchequer owing to the suspension of the contract with the company was far stretched. If one considered the cost escalation during the last two years, the extra cost of Rs.74 crore was reasonable, he said.

National Highway 17 and National Highway 47 would be made four-lane ones and the work would be taken up immediately.

Officials of the State government were holding talks with the National Highway Authority of India in New Delhi. A meeting with Union Minister for Surface Transport would be held in January, the Minister said.

Now on, all the PWD roads would be constructed with proper drainage systems. The contracts would include proper drainage systems for its durability and proper functioning, he said.

The Minister said unfinished railway over-bridges in the State would be completed soon. The government would extend assistance to the Kerala Roads and Bridges Corporation which was facing problems in repayment of HUDCO loan.

He visited the railway over-bridge at Victoria College junction and held discussions with officials for the early completion of the three railway over-bridges in the town.