Auditors have objected to the Kerala Water Authority (KWA) awarding its leak detection work on city pipelines to a private firm.
The KWA had awarded the project to the Delhi-based Four ITS Private Ltd., which executes the work through the Canada-based company, Pure Technologies, and the Manila-based Maynilad Water Services Inc., using two advanced technologies, Smart Ball and Sahara. The private firm had scanned around 40 km of KWA’s decades-old pipeline networks in the city in two phases, without detecting many leaks.
The office of the Accountant General has asked the KWA to explain the circumstance that led to awarding the work to the firm without inviting tender. The water utility was asked to clarify on the criterion and mode of selection of the firm. The AG’s office said the work was awarded by waiving the tender call due to which the competitiveness of the firm could not be ascertained.
KWA sources said the auditors had questioned the necessity of accepting the proposal of the firm without preparing an estimate.
It had also pointed out that work order was given for the second stage without assessing the results of the trial run. The firm was supposed to carry out tests in Kochi also, but it ended up doing the work in Kollam.
Exorbitant rates
“For the second phase, the rate was revised by 245 per cent for Small Ball and 545 per cent for Sahara above the agreed rate without taking an estimate. This has resulted in an extra expenditure of Rs.72 lakh,” the auditors said in their report.
A senior official said “a detailed response has been given to the AG’s office a few days ago.” It was reliably learnt that after the objections were raised, the utility stopped payment for the second stage work. For the first stage of leak detection, carried on a 36-km stretch, the firm was given around Rs.50 lakh.
Sceptical
In the beginning itself, a section of engineers had questioned the use of a costly technology without properly assessing the pipeline network. Their concerns about the efficacy of the hi-tech tests proved right when the pipelines laid at Pottakuzhy and Marappalam burst days after the technology was used to detect leaks. “Our concerns proved right. The tests were conducted on pipelines which have outlived its lifespan and are considered for replacement,” said a junior engineer.
Costly technologies were used for detection
KWA stops payment for second phase work
