CAG slams OFB for slippages in providing equipment to Services

The CAG today slammed the Defence Ministry and the Ordnance Factory Board for slippages in meeting requirement of trousers, boots, parachutes and jackets for the armed forces which in some cases even "adversely affected" their operational preparedness.
The government auditor, in its report tabled today in Rajya Sabha, said due to the slippages in providing these equipment, the forces had to buy the items worth around Rs 1,147 crore from other sources.
The report on 'Performance of Ordnance Equipment Group of Factories' also observed that there was "lack of transparency" in the process of issuing tenders where in some cases one agent was representing two firms in one tender violating the CVC guidelines and Defence Procurement Manual rules.

"The shortfall in production and issue of items valuing Rs 1147.13 crore during 2008 to 2012... The Central Ordnance Depot, Army expressed serious concern about critical deficiency of 13 items including paratrooper boots, mosquito nets and sweaters due to non-supply in 2009-10," the report said.
It said the "slippages were mainly due to the delayed finalisation of firm targets, acceptance of targets beyond the capacity for some product-mix, slippages in procurement of stores and low utilisation of capacity".
The CAG said the Defence Ministry has attributed the reason for shortfall in production to "delayed fixation of firm target by the DG, Ordnance and Supplies of Army and the Ordnance Factories and delayed placement of order, inadequate supply of raw materials and acceptance of target beyond capacity for certain items".

It said the Defence Ministry reply is an admission that these slippages happened due to known reasons but "the reply is silent on the remedial action proposed to be taken.