CAG unearths graft, shoddy work at 2008 Youth Games

The Union comptroller and auditor general (CAG) has said several rules and regulations were openly flouted in the awarding of contracts during the Commonwealth Youth Games (CYG) held in 2008 at Pune.

The amount involved in the alleged irregularities, on construction and refurbishment of the sports complex and procurement of equipment, was found to exceed Rs 200 crore.

Speaking to reporters, Mala Sinha, principal accountant-general, said the report was restricted to infrastructure development ahead of the Games. “Several committees (were) set up and the role of no one individual can be highlighted. This is a failure with respect to the overall supervision.”

CAG said that because of serious deficiencies in the planning for sports infrastructure, the cost of the main work increased by 85 per cent. Also, only half the equipment required by the city’s commissioner of police was received before the event. Planning and work on city infrastructure by both the Pune Municipal Corporation and Pimpri-Chinchwad Municipal Corporation were not effective, it said.

"We found serious deficiencies with regard to the construction of a three-star hotel on a public-private partnership basis. The tendering process was severely flawed. The contract was awarded to Unity Infra Projects on a single financial bid, with a net present value far below that recommended by the finance department," said the report.

It said the Director of Sports and Youth Services unauthorisedly retained an unspent Rs 3.47 crore drawn from the Contingency Fund and did not remit this to the treasury.

Among other major findings, Rs 177 crore was found unnecessarily spent due to commencement of work without ensuring clear sites leading to blocking of funds. Improper planning without adequate surveys and investigations added another Rs 11.2 crore as expenditure on account of price variations and consultancy fees. Road works costing Rs 42 crore were irregularly awarded by the Pimpri-Chinchwad Municipal Corporation.

Undue favour was shown to B G Shirke Construction Technology in award of contracts worth Rs 32.65 crore without tendering and excess payment of Rs 45.79 lakh was made to them for installation of passenger elevators, due to application of incorrect rates.

Regarding procurement of equipment, CAG said procurements were made from single sources without tendering and equipment was procured in excess of actual requirement. The report also indicted the two committees formed in Maharashtra for guidance and supervision of the Games.