CAG pulls up Mumbai’s civic body for callous use of funds
As the city awaits polls to elect a new civic house, a special audit conducted by the Comptroller and Auditor General (CAG) into the Mumbai civic body’s functioning has pointed out serious irregularities in giving contracts and implementing various city projects.
The report on the audit of ₹12,024 crore work taken up by the Brihanmumbai Municipal Corpo- ration (BMC) has rapped the civic body for callous handling of public funds, lack of transparency, sys- temic problem and mismanage- ment while awarding the con- tracts related to road, waste man- agement and other projects.
It has also said that in most of the contracts, the tender process was not followed resulting in ben- efit to the contractors.
The audit of various projects between November 28, 2019 and October 31, 2022 was conducted by the CAG on the instructions of the state government whose report was tabled in both the houses of the state legislature on the concluding day of the budget session on Saturday.
The audit by the CAG has found several irregularities and flaws on part of the BMC while awarding contracts. In some cases, rules were not followed while in others, the civic body did not invite tender for awarding contracts.
The CAG has observed that two departments of the BMC gave 20 works worth ₹214.48 crore without tenders, while in works worth ₹4,756 crore rewarded to 64 contractors, agreements were not executed between the BMC and contractors which means BMC would not be able to take any legal recourse against the contractors if there is any default on the part of contractors..
The CAG has rapped the BMC for acquisition of 32,395 square meter land in Dahisar reserved as garden, maternity home for ₹349 crore, at 716% high price than ₹206 crore finalised in 2011. Encroachment on the land will need additional ₹77.80 crore for rehabilitation resulting in the loss to the civic body.
The audit report has also rapped the BMC for its tender for waste to energy project at Deonar dumping ground. The project was allotted to Chennai based MSW Private Limited by reduction the disposal of the waste management to 600 tonnes a day from original proposal of 3,000 tonnes a day. “The project was expected to generate a minimum 17 million units of power a annum. The project had a design and build period of 40 months and operations and maintenance period of 15 years. The progress of the project in December 2022 was just 10% after awarding the work on August 5, 2022,” it has stated.
The report has stated that contractor appointed for the construction of two road over bridges at Mahalaxmi Railway station was given undue favour of ₹27 crore by violating the tender conditions.
Construction of two flyovers and elevated rotary along the Goregaon Mulund Link Road was delayed for the want of forest clearance resulting in cost escalation to ₹6,322 crore from ₹4,500 crore.
It has rapped the BMC for allotting 51 concretisation works of the road without any survey. It led to the benefit of ₹1.26 crore to the contractors, the report has stated.
The state government had requested CAG on October 31, 2022, for the special audit of 76 identified works costing ₹12,024 crore, executed by nine departments of the BMC. The contracts related to Covid-19 could not be probed as the civic body invoked provisions of the Epidemic Act 1897 and Disaster Management Act 2005 that give protection to the authorities from following the laid process because of time constraints.
e-services too
CAG has also pointed out shortcomings in the various e-services offered by the state government on various portals.
During assessment, Mumbai city collector found that out of total 69 Aaple Sarkar Seva Kendras (ASSKs), 24 were either closed or private businesses such as cable networks, courier services, mobile shops were being operated at these ASSKs.
The audit found that there was a lack of uniformity in the collection of charges from the citizens for providing blank application
forms and ₹10 to 15 was charged in districts like Mumbai, Thane and Pune. There was low coverage of digital payment facility at ASSKs
CM Shinde reacts
Chief minister Eknath Shinde said, “Action would be taken against the officials and people responsible for the corruption. We are ready to probe the works rewarded in other municipal corporations as well.”
Thackeray faction leader Aaditya Thackeray welcomed the CAG report on the BMC and demanded that the state government must conduct CAG inquiries into the working of Thane, Navi Mumbai, Nagpur, and Pune and Kalyan Dombivli municipal corporations.
“If they (state government) have guts, they should order CAG inquiry of other municipal corporation such as Thane, Navi Mumbai, Nagpur, and Pune and Kalyan Dombivli municipal corporations,” said Aaditya.
He added that the CAG report is an attempt to defame the Mumbai-BMC and reiterate that CM means “corrupt man.”