Rs 3500 cr projects to controversial US giant?
Ajay Thakur
Panjim: This isn’t a scam yet. But it surely is an advance early warning signal. Herald investigations reveal that the Goa government could cumulatively hand about Rs 4,500 crore of consultancy and construction projects, including the controversial Mopa and the sea link projects, to companies under the same umbrella group holding- Berger Group Holdings Inc.
As reported in the Herald on Saturday, Ammann and Whitney, who the government has zeroed in as a consultant for the Mopa project with a strong likelihood of it getting the Mopa design and construction project, (Rs 2400 crore and rising) is part of Berger Group Holdings. So is Louis Berger, the consultant for the Dona Paula-Vasco sea link project, listed officially as a PPP (public private partnership) project by the government. (Rs 1,000 crore).
However, even a cursory background check of this global conglomerate- amongst the largest global consultancies on infrastructure, engineering, environmental science and economic development- brings up facts of considerable concern.
Media reports in United States mentioned that the group was under civil and criminal investigation by the US agencies for inflated billings for federal aid and reconstruction projects in Iraq and Afghanistan. Louis Berger, the very company entrusted with the sea link project, had allegedly over billed Unites States Agency for International Development projects for almost a decade and had to pay 69 million dollars as a “deferred judgment” settlement for overcharging the government for projects. This meant that even after the payment of the settlement, investigations could be reopened
Louis Berger’s controversies then travelled to India. An under construction bridge over Chambal river collapsed in Kota on 24th December 2009 killing 32 workers and trapping 17. The NHAI blamed Louis Berger for the faulty design..
“There are no established procedures for checking backgrounds of foreign companies though our embassies abroad were asked to find out about them” confirms former Ambassador to Saudi Arabia / Hungary Rakesh Shankar.
The Goa government’s Mopa gamble has been calculated. Even the Comptroller and Auditor General’s Office did not have the constitutional mandate to check PPPs till late 2010. “Foreign companies first come in as technical consultants to devise and design procedures and eligibilities to enable another associate company to qualify”, explains Pranav Prakash, former Senior Vice President, Meinhardt Engineering Consultants. Singapore-based Australian major Meinhardt Group develops many infrastructure projects in India both as consultant and contractor.
Ammann and Whitney could take the same route. Is the silence on Ammann & Whitney and the coincidence of its sister company Louis Berger on another project, a precursor to a partnership which is not ethical?
Rs 3500 cr projects to controversial US giant?
Panjim: This isn't a scam yet. But it surely is an advance early warning signal. Herald investigations reveal that the Goa government could cumulatively hand about Rs 4,500 crore of consultancy and construction projects, including the controversial Mopa and the sea link projects, to companies under the same umbrella group holding- Berger Group Holdings Inc.

