Wednesday, March 9, 2011

CWG scam: OC paid . 33K for 20-litre water jars

New Delhi: In yet another instance of Commonwealth Games contractors jacking up prices astronomically, in collusion with Organising Committee officials, CAG has found that 20-litre mineral water dispensers were provided at Rs 1,700 to 33,000.
A Comptroller and Auditor General (CAG) audit, looking into CWG contract irregularities, also objected to the OC paying vendors for drinking water supply when a sponsorship agreement with Coca Cola provided for adequate mineral water supply at all Games venues.
Despite this corporate sponsorship, OC bosses decided to make payments of nearly Rs 4 crore for 3,100 water dispensers of 20 litres each supplied at different Games venues. Each dispenser cost between Rs 1,776 and Rs 32,986.
OC made payments at the rate of Rs 1,776 to Vasant Kunj-based Nussli India Pvt Ltd, which had bagged different contracts at Games venues worth over Rs 180 crore. Another vendor, GL Meroform, had quoted the same 20 litre water dispensers at Rs 32,986. As there was sponsorship agreement for providing drinking water, there was no requirement to hire water dispensers, leading to excess expenditure of Rs 3.82 crore, the CAG said. The two vendors who supplied mineral waters at astronomical rates bagged the CWG overlays contract even though they had failed to meet the eligibility criteria.
Though two of the vendors finally selected — PICO Deepali and Nussli India— did not meet the required turnover eligibility of Rs 1,075 crore, they were selected at the instance of V K Verma, an OC D-G now facing CBI interrogation.

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