Tourism dept appointed consultants @Rs 8 lakh a month for master plan without finance and cabinet approval

PANJIM:  Even an institution as vital as the finance department has been literally mocked and bypassed, in the appointment of a very expensive consultant to formulate Goas tourism master plan. And here’s the shocker. After the Finance department refused to give its financial approval for the appointment KPMG Advisory Services Pvt Ltd consortium with Tourism & Leisure Advisory Services” for preparation of the Tourism Master Plan and Tourism Policy for the state of Goa, for three years, the cabinet finally cleared it on Friday last. But even this cabinet clearance came six months after the tourism department allotted the contract to the consortium.

So in short, on the day when the contract of Rs 4.99 crores, plus Rs 8 lakhs a month was signed with KPMG and Tourism& Leisure Advisory Services, there was no finance department approval nor a cabinet clearance. The Rs 4.99 crore would be paid in phases after submission of deliverables every stage, which may be spread over two years, 2015-16 and 2016-17. According to the department, KPMG will also provide programme management assistance for a period of 5 years in phase II. The Rs 8 lakhs a month would be paid for their continuous work on the Tourism Master Plan and Policy

Sources state that the file regarding the appointment of the consultant was returned back by the finance department at least seven times for want of clarifications and struggled to get the approval of the department for three years.

Documents accessed by Herald reveal that the Tourism Department falsely claimed that approval was taken from the Finance department.

The finance department note dated 17/7/15 has ruled out granting approval for any such financial sanctions.

“The department has stated that Finance Department D vide ga 16/N-31/N accorded to for acceptance of fees quoted by KPMG for rendering services under Phase I and Phase II and expenditure sanction of Rs 250 lakhs to pay to M/s KPMG as part of the payment in fiscal year 2014-15,” says a note by Finance department.

It further states, “it is submitted here that FD (Finance department) did not accord approval for the appointment of M/s KPMG for preparation of Tourism Master Plan neither did FD accord expenditure sanction of Rs 250 lakhs to pay to M/s KPMG as part payment in 2014-15. The approval obtained at page 31 N is of Hon’ble chief minister and not in the capacity as finance minister.”

After returning the files several times, the Finance Department finally made a comment on October 20, 2015t “Since it is fait accompli approval the work of the preparation of the Tourism Master Plan is already allotted to KPMG without the consent of Finance Dept; Tourism Dept may obtain the approval of the cabinet to regularise the award of consultancy of KPMG by incorporating the views of the Finance Dept and the mode of payment.”

What is even more shocking is the way the consultant was appointed and the role of the cabinet in approving such files post-facto.

Sources claim this is nothing but a huge scam in the making by the department.