A couple of days after > The Hindu published a report on huge financial irregularities in major ports of the country, the Ministry of Shipping formed a five-member committee to probe the scam.
The committee was formed soon after “reports started coming out” in the press towards the end of last week, a senior officer in the Ministry told this newspaper. The committee members are the chairmen of ports in Chennai, Mumbai, Kolkata, Cochin and Tuticorin.
They will investigate the irregularities and submit a report “at the earliest,” sources said.
BJP MP Mansukhbhai D. Vasava had alleged that flawed tendering and appointments of cargo handling agents in the shore over several years had resulted in a loss of Rs. 8 lakh crore to the 12 port authorities. Mr. Vasava claimed that handling agents were appointed at “absolute discretion” of the port authorities, violating several sections of the Major Port Trust (MPT) Act, 1963.
Taking a cue from Mr. Vasava’s letter, which was written to the former Prime Minister, and after publication of news reports, the Ministry appointed the five-member committee.
The committee, headed by Paul Antony, the Chairman of Cochin Port Trust, met twice in last few days to assess the situation.
Interestingly, some of the chairmen, who were appointed as probe committee members, have denied any financial irregularity in the major ports. The Kolkata port chairman, RPS Kahlon, who is also a member of the probe committee, told The Hindu earlier that he was not aware of any scam.
“Occasionally, we raise a hue and cry about revenue-sharing between handlers and the port authority. Under the existing Port Trust Acts, there is no provision to share revenue,”
“To share revenue, there has to be a policy-shift incorporating the provision to share revenue between,” Mr. Kahlon said.
Two letters The vigilance wing of Shipping Ministry issued two letters in June to the major port authorities seeking an explanation on whether the rates charged by the handling agents were approved by the Board of Trustees of the port authorities, and “if not, why”. The letter also questioned the process and criteria for selection and appointment of shore cargo handlers.
One of the letters asked for the list of private cargo handlers and the year-wise “licence fee and revenue” paid by them in order to compare the revenue loss to the port authorities due to the alleged corrupt practices in appointing stevedores.
The CBI has initiated a separate probe into the port scam.
