Lower rates were passed up in favour of higher prices, the process for floating tenders was not followed and a senior official provided misleading information, the Delhi Jal Board’s report into the alleged water tanker scam has found.
The report of the fact-finding committee, which was set up by DJB chairperson Kapil Mishra in June 2015, was sent to the Anti-Corruption Branch (ACB) on Thursday by Lieutenant-Governor Najeeb Jung, setting off a political storm.
The AAP demanded the arrest of former Chief Minister Sheila Dikshit, who was the chairperson of the DJB in 2012 when the tankers were hired. The Opposition BJP demanded action against CM Arvind Kejriwal for “sitting on” the report, which was submitted to the DJB on July 14, 2015.
'No need for the project'
At the heart of the controversy is the hiring of stainless steel GPS-enabled water tankers. Before it delves into the alleged irregularities in the contract, the report questions the need for the project altogether. In a 33-page abstract, the fact-finding committee wrote that the project was portrayed as a “novel” scheme with “new technology”.
“The fact was that it was nothing but the existing water tanker distribution system in the DJB plus GPS based monitoring system. It could have been designed, formulated and implemented by DJB engineers,” stated the report.
So, not only was the contract “awarded on exorbitantly higher rates” to National Institute of Smart Government (NISG) — a private company — but a DJB member had given “misleading information” saying that NISG was a government agency. The appointment of the Delhi Integrated Multi-Modal Transit System (DIMTS) as a consultant on nomination basis was “under a cloud” as it caused a loss of Rs.36.59 crore, said the report.
Before the project was given to NISG, two earlier tenders for the same were rejected because only a single bidder participated. However, the rates of the bidder – SPML Infra Ltd. – were “lower by about half the suggested cost” because it was the lone participant.
Government agencies usually avoid awarding contracts based on a single bid, but the report cited examples of the DJB allotting work to single bidders in other projects. After the initial tenders were unsuccessful, the conditions were changed.
Heavy financial loss
The report found: “Change of NIT conditions to extend undue favour to the contractors and ignoring the DJB’s as well as the exchequer’s interests.”
By ignoring the lower rates, the DJB incurred a loss of Rs.323.96 crore on the contract itself and Rs.36.59 crore on the consultant’s fee. A total loss of Rs.360.55 crore – a loss of Rs.87.08/km and Rs.119.61/km for 3KL and 9KL capacity tankers respectively – was incurred, said the report.
File FIR against Dikshit
and Kejriwal, says BJP
While he declined to comment on the report, Mr. Mishra said that there was enough evidence for an FIR against Ms. Dikshit.
“We are waiting for an FIR now. This is the first time that a 125-page report with all the evidence of a scam has been given to the ACB,” said Mr. Mishra.
Vijender Gupta, the Leader of the Opposition in the Delhi Assembly, said that an FIR should be filed against both Ms. Dikshit and Mr. Kejriwal.
“The CM suppressed the report. He took no action despite strong appeals by his own Water Minister,” said Mr. Gupta.
