Team Herald
MARGAO: United Goans Foundation (UGF) alleged that the Congress and the BJP governments had siphoned off more than Rs 600 crore of JICA funds, and it demanded a Central Vigilance Commission (CVC) inquiry into the same.
UGF pointed out that that the project cost had been escalated to divert extra money, which came in during currency conversion, and that both governments had violated CVC and CPWD norms by escalating the costs after the tender was awarded.
In 2007, when the JICA project was awarded, the Indian rupee was worth 2.70 Japanese Yen. The entire project amount was awarded to the Public Works Department. When the Yen fell, the Goa government gained almost Rs 700 crores. This amount was only known to the PWD and government’s finance department. UGF said it was no wonder the project cost increased from Rs 709 crores in 2007 to Rs 1,031 crores in 2010 to the current Rs 1,358.5. Hence, the group is demanding that all three chief ministers, who were also finance ministers, and the two PWD ministers be investigated.
UGF questioned why successive governments had not surrendered the extra money, which it gained from the fall of the Yen, to the exchequer or returned the same to JICA. It also questioned why the current government was not doing anything about the almost 100 percent increase in the project cost despite clear cut guidelines by CVC. It sought to know who pocketed or is pocketing almost half of the JICA funds with the current conversion to rupees.
UGF stated that the Churchill Alemao-led PWD had escalated the cost of the JICA project, but his successor, Sudin Dhavlikar, had surpassed him. The total cost of 19 components of the project had increased from Rs 709 crore (after conversion) in 2009 to a massive Rs 1,358.5 crores in 2011.
The second scam highlights the manner in which the PWD sat quietly on a surplus on account of the falling yen and wanted the public to believe that it was due to a hike in prices.
“When Churchill was the minister, Parrikar had questioned him about the escalation. Churchill cited an increased price of materials. However, once BJP came to power, instead of investigating the former PWD minister’s claim, Parrikar’s own PWD minister used the same excuse to increase the estimated cost even further. Neither of the two governments is willing to explain the reason for a 91 percent increase in cost in less than five years,” said Avinash Tavares of UGF.
Tavares added that of the 19 components, 16 have been awarded and none have been completed; the escalation appeared as early as this stage. According to estimates, even if one took into account the falling yen, the initial cost of Rs 709 crores would have increased to Rs 1,031 crores and not Rs 1,358.5 crores as the estimate shows.
“Why is this difference of Rs 327 crores (Rs 1,358.5 minus Rs 1,031 crores) being factored? Under CVC norms, a cost overrun of up to 30 percent is overlooked. Anything above that is viewed with suspicion and calls for a probe. In this case, it was a 50 percent plus cost overrun, with Rs 1,031 crores as the base figure. In reality, a 100 percent plus cost overrun if the base rupee amount of Rs 709 crores is taken into consideration. This is a case fit for a vigilance inquiry,” said Tavares.
UGF pointed out that the 16 packages had already been awarded and the increase in estimate was done afterwards. Under CPWD norms, these contracts cannot be renegotiated or withdrawn. UGF questioned from where the extra Rs 649.5 crores came to cover the cost overrun with the government.
