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LATEST NEWS UPDATES | Even PSU looted Games funds: CAG

Even PSU looted Games funds: CAG

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published Published on Aug 5, 2011   modified Modified on Aug 5, 2011

-The Times of India

 

It was not just private sector firms that made a killing out of the Commonwealth Games held last year. In a clear sign of how even public sector units viewed the Games as a windfall, the Comptroller and Auditor General has found that Electronics Corporation of India Ltd (ECIL) made huge profits out of its contract for Integrated Security System (ISS) for the Games.

Given on a "nomination basis" without tenders, the contract was to ensure effective surveillance of the Games with perimeter security, vehicle access control, pedestrian access control, venue security command centre etc. The items included RFID tags on vehicles, explosive detectors and the like.

The CAG audit found that ECIL prepared a "highly inflated cost estimate", approved at Rs 346 crore by the government. The PSU made a profit of Rs 126 crore on just items procured from external suppliers, the auditors found. The company refused to give details of items manufactured in-house to CAG, the audit report said.

The CAG had recommended that the final payments to ECIL should be released only after the PSU's statutory auditors carried out detailed examination of actual costs and after allowing for only a profit margin of up to 20%.

In many instances, ECIL may have procured far more numbers of items than required. The CAG found 176 portable explosive detectors (PEDs) worth Rs 39 crore were wrongly procured by ECIL and were not used. Similarly, 15,090 out of 18,700 RFID tags for accredited vehicles also remained unutilized.

With the home ministry having no long-term plan for utilizing the equipment bought for the Games, ECIL on its own identified Rs 272.65 crore worth equipment as legacy and non-legacy equipment, but none of it has been deployed until now.

The auditors looked at Kadarpur Shooting Range in Gurgaon, one of the venues of the Games. The home ministry had given a special grant of Rs 23.23 crore under the Modernisation of Police Forces Scheme to the Haryana government for making Games security arrangements. Though Rs 21.96 crore was withdrawn from the treasury during July-October 2010, no equipment was received until November 2010, even after the Games. Though the state police procured 39 fabricated police assistance booths, they were not given to Gurgaon and Faridabad traffic police in time for the Games, the auditors found.

The Times of India, 5 August, 2011, http://timesofindia.indiatimes.com/india/Even-PSU-looted-Games-funds-CAG/articleshow/9486410.cms


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