he Comptroller Auditor General (CAG) has pointed to various discrepancies in hiring of ACES premises at Patto Plaza for government departments.
CAG said that the failure of the State government to hire ready to move in premises led to an expenditure of Rs 5.89 crore post hiring on internal modifications.
Also, it pointed out that pending internal modification, the offices could not move to hired premises for a period ranging from five to 35 months while the government continued to pay a rent for vacant period rendering an expenditure of Rs 11.17 crore.
The auditor observed that in order to provide additional space required for various government offices and also to house offices paying huge amounts of rent to private parties, the State government decided (November 2012) to hire premises that were ready to move in and simultaneously directed the General Administration Department (GAD) to identify land for construction of building to accommodate government offices.
“The GAD in February 2013 invited expression of interest from owners of commercial premises for suitable office space measuring 6000 sq metres to 7,000 sq metres on hire purchase basis for a period of three years extendable to six years, if required,” it says.
Further, CAG adds that against the EOI, three bids were received in March 2013. A five-member committee under the chairmanship of Principal Secretary PWD inspected the premises offered and recommended Apex Computers and Engineering Services (ACES), Goa who had offered the maximum space for consideration of State government.
“In January 2014, the government signed the lease deed with ACEs, Goa for hiring a total office space of 5,416.50 sq metres in two adjacent commercial buildings at Patto Plaza, Panjim – 4,841 sq metres in SPACES building and 575.50 sq metres in Kamat Towers at a negotiated monthly rent of Rs 42.93 lakh or a period of three years commencing from November 1, 2013 to 31 October 2016,” the auditor says.
The State government extended the lease for a further period of three years from 1 November 2016 to Nov 31, 2019.
Audits observed that since the leased premises were not in a ready to move condition, the State government roped in GSIDC to carry out internal modifications in the premises as per requirements of allotee departments.
ACES handed over possession of premises to GSIDC between November 27, 2013 and March 20, 2014. The modifications were scheduled to be completed in three months between August 2014 and November 2014, against which, the modifications were actually completed at a cost of Rs 5.89 crore in September 2016, a delay of almost two years.
Thus, the initial three years were only spent on providing interiors to the premises, huge public investment in private properties indicated scant regard for value of money, auditors said.
Audits said that pending internal modifications, while the allottee departments could not shift to the leased premises for a period ranging from for five to 35 months the State government paid rent of Rs 11.17 crore to ACES for the intervening non-occupied period, which was nugatory.
The Secretary, GAD, stated in June 2018 that the expenditure cannot be considered as wasteful since all departments who were allotted the premises had their own internal; modifications to be undertaken before occupying the premises.
The audits say the contention of Secretary is not tenable as rent was paid for the premises without government departments using it. Further, while the government’s initial directive in December 2012 was to identify and hire readymade premises, the EoI issued in February 2013, did not mention this critical requirement. This eventually led to huge public investment on interiors post hiring.
“The government could have also moderated its investment on interiors to enable the offices to shift to new premises faster,” CAG says.
