This is how the Electricity Dept tenders were rigged…

SURAJ NANDREKAR

suraj@herald-goa.com

PANJIM: Recently, Goa Lokayukta Justice P K Misra ordered a stay on Electricity Department tenders worth Rs 328 cr on finding discrepancies in the tendering process. The Lokayukta also turned down the government’s request to vacate the stay.

While in the last year, this paper has exposed several such illegalities in the department, Herald has again laid hands on the document which has now caught the Lokayukta’s eye. Investigations reveal serious manipulations, fraud, rigging, violation of CPWD manual and CVC rules whilst allotting major tenders worth crores of rupees by forming a cartel. 

Investigations reveal that the Electricity Department (GED) had floated an online tender – GED 0116 – electrical works in sub transmission and HT/LT distribution networks for GED, tender Notice No 01(15-16)CEE/1982 dated 29/01/2016. 

Three companies – Voltas Electric, KEI Cables and L&T – were shortlisted after technical evaluation. As per the procedure specified by the CVC and the CPWD manual, the financial bids were to be opened on a specified date and time after intimation and in the presence of the bidder’s representatives.

However, in disregard and defiance of the law and rules, the financial bids were tampered with and were opened before the bids were to be officially opened. All the three bidders had quoted to the tune of Rs 185 crore for the tender. Voltas Electric had quoted Rs 185.40 crores, KEI Cables quoted Rs 186.28 crore and L&T quoted Rs 186.63 crore.

“In the bid to cover up the fraud of tampering the online bids, GED obtained letters from all bidders mentioning that they did not have any objection in their bid prices being seen online before the official opening,” sources told Herald. 

Sources said the bidders were assured that on them giving the no objection letters the tender would be allotted to one of them and the other two companies would be allotted other tenders of approximately the same amount.

“The financial bids of all three were therefore accepted even though the rates quoted were 20 percent higher than the estimated cost. As per the agreement reached, L&T was awarded the tender,” sources said.

Investigations further reveal that despite the tenders being over quoted GED officials, instead of re-tendering the works, under the direction of the Power Ministry decided to seek approval of government including EFC and FD.

This case of rigging the tender that cost the State exchequer more than Rs 30 crore was brought to the notice of the Chief Secretary by a budding politician. The letter to the Chief Secretary mentioned that the following tender would be for supply of arial bunch cables at an estimated cost of Rs 142 crore and the same would be allotted to one of the remaining two bidders as promised.

The Chief Secretary, after understanding the facts and presumably after consulting the Chief Minister, ordered re-tendering of the said work by not granting the expenditure finance committee approval at the Goa State Work Board meet. 

Following this, Electricity Department floated another tender – GED 0216 – under tender notice no: 01/(16-17)/CSC dated 02.08.2016 for conversion of existing 11kV overhead bare conductors lines in GED network to 11kV aerial bunched cable network at a estimated cost of Rs 139.43 crore.

As agreed and promised to the bidders, the tender was allotted to second lowest bidder in the previous tender, KEI cables, at the cost of Rs 145.51 crore, 4.36% above the estimated cost. 

“The second tender was floated even after the fact that the first tender was rigged and the information that this second tender would be allotted to KEI Industries was brought to the notice of the Chief Secretary well in advance through the letter dated May 24, 2016,” sources said adding that in this tender the NIT and tender conditions, especially the work experience criteria, was tailor made to suit KEI Industries by violating guidelines mentioned in CPWD manual and by floating CVC norms.

Further, sources said, the department also violated the High Court order by including the supply of about 20,000 RCC poles in the tender when the same is to be ordered from GHRSSIDC as per the court orders. The price quoted for the pipes by KEI were also much above the GHRSSIDC rates. 

The IEEMA rate preferential clause was also omitted and the drastic reduction of the aluminum rates in the market was not considered in arriving at the final rates of the cable.

The reduction would be to the tune of Rs 12 to Rs 15 crore. This case of systematic rigging of tenders by GED and also price escalation and manipulation from CPWD manual and CBC guidelines was again brought to the notice of the Chief Secretary vide letter dated August 16, 2016.