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'Corp caused losses to govt in infra creation too' [Patna] [Times of India](Times of India Via Acquire Media NewsEdge) PATNA: If one goes by the latest report of the Accountant General (audit) of Bihar, the Bihar Medical Services and Infrastructure Corporation Limited (BMSICL) committed irregularities not only in purchase of drugs and equipment but also in construction of offices and residences and quarters of medical officers (MO) and nurses and preparation of detailed project reports (DPRs). The AG report says, "Avoidable payments ranging from Rs over 183 lakh to Rs 320 lakh was made for construction of district programme manager office and residence (DPM), MO and nurses quarters and district ware houses (DWH) for medicines." BMSICL did not follow the provisions of PWD Code of economical contract wok while awarding 23 projects of district programme manager's offices and residences to a single financial bidder that led to losses ranging from Rs 53.37 lakh to Rs 144.96 lakh. In case of construction of DWH, the state exchequer incurred losses ranging from Rs 4.62 lakh to Rs 21.11 lakh in contract amount. While paying to contractors, losses ranging from Rs 3.14 lakh to Rs 9.35 lakh were incurred. Even the bill of quantities, ie list of materials and labour required for construction, was not technically sanctioned and the payment was made on the basis of demand of consultant without cross-verifications by technical officials of BMSICL. The auditor says the BMSICL's reply to the objections raised by it is not satisfactory. "Tender finalisation committee of BMSICL is headed by a non-technical post of MD. There is no provision in the rule to negotiate with the bidder in case of single bidding. The decision of board to authorise the MD to negotiate with bidder is irregular," the AG report says. The auditor has also raised questions over preparation of DPRs and soil testing for building hospitals and doctors' residences. It said avoidable payments of Rs 94.72 lakh were made. These payments were made without technical and administrative sanction of the health department or State Health Society of Bihar (SHSB). The auditor has also taken exception to "payment of irregular income tax of Rs 85.76 lakh". BMSICL received over Rs 65 crore and Rs 50 crore in two turns from SHSB. However, SHSB demanded the funds back, saying the payment was made wrongly. BMSICL returned the principal amount but not the interest and kept it as profit of the corporation that resulted in payment of irregular income tax. It also paid a tax of Rs 282.52 lakh on retention of interest amount. (c) 2014 Bennett, Coleman & Company Limited |