Undue benefit of Rs 9.61 crore to Shivaji Memorial consultant: CAG

According to the report, the Maharashtra government accorded sanction for appointment of M/s Egis India Consulting Engineers Pvt Ltd and Design Associates as PMC at a cost of Rs 94.70 crore in March 2016 for 40 months (till August 2019). However, in February and March 2017, citing its slow pace of work and peculiar, complex and multi-tasked nature of project, the government “de-scoped” or reduced work of the PMC.

Read | Shivaji memorial: Change in scope of work vitiated tendering procedure, says CAG

De-scoping means revising downward of objectives. Sources in the government said the PMC had been appointed for the project as the PWD did not have experience of handling such a project.

“Further, work of surveys, investigation and testing, etc was withdrawn from the scope of work of PMC and included in the memorial contractor i.e. M/s L&T Ltd at Rs 20.57 crore. The chief engineer of PWD had recommended in February 2017 for revision of remuneration payable to PMC to Rs 72.85 crore from Rs 82.46 crore. However, state government had approved the remuneration as Rs 82.46 crore without any justification. This resulted in undue benefit of Rs 9.61 crore to the PMC and additional financial burden of Rs 20.57 crore to the exchequer,” it remarked.

The report further assessed the PMC’s work since April 2016 and expressed dissatisfaction. “It was, however, noticed that even after lapse of 32 months from the stipulated date of completion, the PMC had not executed the work related to pre-tender stage fully and satisfactorily till May 2019,” it remarked.

The report further questioned the PWD for non-inclusion of penalty clause in the contract agreement of PMC and termed it as “undue favour to PMC”. “Though there was provision for financial incentive for timely completion of the work, there was no provision for penalty for delay in completion of the work. Thus, due to non-incorporation of penalty clause for delay in completion of work, department could not take penal action against the PMC for delay in completion of stipulated work in timely manner,” said the report.

An official from CAG said it has sought a detailed response from PWD. Manoj Saunik, Additional Chief Secretary (PWD), said: “We haven’t studied it yet. I can’t comment on it.”

The Indian Express on Saturday reported on the CAG report’s findings, highlighting how the Devendra Fadnavis-led government’s decision to reduce the cost of the proposed Shivaji Memorial by negotiating with the lowest bidder and changing scope of work has “vitiated the tendering procedure and defeated the objective of transparency in tendering process”.

The Shivaji memorial was a flagship project of then BJP-led state government. Work on the project was stopped in January, days after the Supreme Court, while hearing a special leave petition on January 11, orally asked the state not to proceed with the construction of the statue.