Assam CM orders probe but fate of the project still not affected

Assam Chief Minister Tarun Gogoi on Monday said if any prima facie evidence was found in the scam, the state government would refer the case to the CBI

Assam Chief Minister Tarun Gogoi on Monday ordered a “high-level” inquiry into the alleged Louis Berger Guwahati water supply project scam. He said if any prima facie evidence was found in the scam, the state government would refer the case to the Central Bureau of Investigation (CBI).

However, there has not been any government decision till now to stop the project or terminate the contract with the US-based firm. Amit Sahai, managing director of Guwahati Jal Board (GJB), the body formed with the mandate of providing piped drinking water to Guwahati households, told Business Standard: “As of now everything is going as usual. I have not received any order from top to stop the project. My job is to provide water to every household and I am doing my best to complete the project.”

The chief minister is also in-charge of Guwahati the Development Department (GDD) that is overseeing the project. He has asked Additional Chief Secretary Subash Chandra Das to probe  and give a report soon.

Himanta Biswa Sarma, the minister who was in charge of GDD when the bribery case happened, had on Sunday absolved himself of having received any kickback from the US-based firm.

“The chargesheet mentions nowhere of me taking or paying any bribe. Some official from Guwahati might have taken, but I had not received any complaint till I demitted office in 2011,” Sarma told Business Standard on Sunday.

Louis Berger, a New Jersey-based construction management firm, has been charged with bribing Indian officials $976,630 to win two water developmental projects in Guwahati and Goa in a US court. Two of its former executives, Richard Hirsch of the Philippines and James McClung of the UAE, have pleaded guilty to the charges in the court.

The Guwahati water supply project was aimed at providing 24x7 piped water to around 70 per cent of the deprived population of the city. Louis Berger, and nine to 10 other firms, had bid for the contract of Project Management Consultancy, floated by Guwahati Municipal Development Authority, for implementing the south-central and north Guwahati water supply projects, funded by Japan International Cooperation Agency.

Sahai said the bidding was held in October-November 2009 and finally a consortium of three firms, Louis Berger, Japanese firm Nihon Psuido and Shah Technical Consultants of India, were selected and awarded the contract in February 2010.

Sahai said the bidding was held in around October-November 2009 and finally a consortium of three firms, Louis Berger, Japanese firm Nihon Psuido and Shah Technical Consultants of India, were selected and awarded the contract in February 2010.

The total contract with three firms was of Rs 86.6 crore.

The project has made around 41 per cent of physical progress till date. It is expected that the project would be completed by February 2017.