CAG slams MTDC for irregular award of work to advt agency

The Comptroller and Auditor General has slammed the Maharashtra Tourism Development Corporation (MTDC) for awarding work to an advertising agency which had been disqualified for lack of experience.
The CAG, in its report on PSUs for 2015-2016 tabled in Maharashtra legislature today, said that MTDC awarded work to an advertising agency, Xebec Communications, which was disqualified at earlier stage due to lack of experience in digital marketing, which was the basic requirement.
"This vitiated the process of open tender and resulted in irregular award of work to Xebec Communications of 0.95 crore," it stated.
The report also said that MTDC's unused grants rose from Rs 21.45 crore in 2011-12 to Rs 219.05 crore in 2015-16. Grants received from the Centre and the state government should be used in the stipulated time, it recommended.

Assets (buildings, etc.,) created at a cost of Rs 12.16 crore remained idle, CAG observed.
MTDC has no mechanism to assess the impact of participation in various international and domestic events by collecting and analysing data such as number of visitors who visited and business generated by participating hoteliers and travel agents, the report said.

CAG also noted that MTDC had not finalised accounts from 2013-14 onward.
The Corporation funded shortfall in sponsorship of Rs 5.32 lakh for organising the Elephanta Festival, which was not contemplated under the contract with the event management company, CAG said.
Among its recommendations, CAG said the Corporation should fix tariffs at its resorts/restaurants considering all relevant factors and after a market survey, and improve services and facilities in resorts to increase occupancy.

Selection of contractors for advertising, publicity and consultancy should be made in a transparent, economical and efficient manner, CAG said.