Greater Chennai Corporation (GCC) is in the middle of strong allegations. A group of civil contractors in the city has raised concerns about the stormwater drain project on OMR, alleging irregularities. The contractors’ association has filed a complaint with the Directorate of Vigilance and Anti-Corruption (DVAC), asserting that tenders for the ₹738 crore project funded by the KfW German Bank were allocated to specific contractors through cartels.
Commenting on the complaint, R Rama Rao, president of GCCWA, said the corporation restricted entry of contractors by revising tender conditions by fixing contractors’ financial turn over from 50% of tender value to 120%.
“This restricted the participation of contractors for…— Omjasvin M D (@omjasvinTOI) February 27, 2024
Several weeks following the impact of Cyclone Michaung, the GCC had initiated an extensive stormwater drain initiative valued at ₹738 crore. This mega project was dedicated to address the flood-affected regions of ECR, OMR, Perungudi, and Pallikaranai in South Chennai. With a project timeline set at 18 months, the comprehensive plan spans a length of 122 km. The construction involves the establishment of a direct channel from Semmencherry to Buckingham Canal, and the majority of other drains will persist in draining into the Pallikaranai marshland.
Against the backdrop of this situation, the Greater Chennai Contractors Welfare Association, comprising 259 contractors in a complaint to DVAC claimed that tenders for the project funded by the KfW German Bank were ‘allocated’ by cartels in exchange for ‘kickbacks’ to Chennai Corporation officials and politicians and pointed out longstanding corrupt practices and claimed that when questioned, the superintending engineer justified his actions, citing instructions from higher authorities. They urged the DVAC to conduct an investigation, emphasizing the potential loss to the GCC.
The complaint also included a list of ‘dummy contractors,’ alleging that the GCC orchestrated competition in tenders mentioned packages of No.13 to No.21. While Ministry of Road Transport and Highways (MORTH) guidelines specify a turnover rate of 40% of the project cost for eligible contractors in competitive bidding, and the same was mentioned in the pre-mid meeting, the conditions were reportedly changed for the OMR-SWD project, prompting widespread questioning.
The association members asserted that the selection of the lowest bidders was predetermined even before the technical evaluation, financial bidding, and negotiations occurred. They alleged that, before the tender due date, influential contractors were awarded tenders by GCC officials, including the superintending engineer responsible for inviting tenders, and politicians seeking kickbacks.
In a communication to the DVAC, the association revealed that, when questioned, the superintendent justified his actions by stating that he was following instructions from higher authorities. GCC commissioner J Radhakrishnan assured that appropriate action would be taken if any irregularities were uncovered.
Regarding the list of allocated contractors mentioned in the DVAC complaint, Superintending Engineer S Bhaskaran clarified that he may have indicated consulting higher authorities in response to the contractors’ representation.
R Rama Rao, president of the Greater Chennai Contractors Welfare Association, criticized the corporation for restricting contractor entry by revising tender conditions. He claimed that the financial turnover requirement was increased from 50% to 120% of the tender value, limiting competitive bidding. Rao alleged that despite having successfully bid for various stormwater drain projects at a negative cost, recent contracts were awarded at higher costs without a significant increase in material expenses.
(With Inputs From TOI)
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