CAG slams Mayawati over extra expenditure on memorials

The Comptroller and Auditor General has slammed Uttar Pradesh Chief Minister Mayawati for incurring an "extra" expenditure of Rupees 66 crore on her two dream projects - B R Ambedkar and Kanshi Ram memorials here.

The auditor said a sum of Rs 15 crore was wasted transporting stone blocks used in the memorials from Lucknow to Rajasthan and back. An avoidable expenditure of more than Rupees 22 crore was also incurred by revising contracts.

The two projects - Bhim Rao Ambedkar Samajik Parivartan Sthal (DASPS) and Manyawar Kanshi Ram Smarak Sthal (MKRSS) were executed by government body Rajkiya Nirman Nigam (RNN).

Noting that the initial outlay for the two works was Rupees 881.22 crore, which included Rs 366.82 crore for DASPS and Rupees 514.4 crore for MKRSS, the CAG in a report tabled in the UP Assembly on Friday said due to frequent changes in drawings/estimates and addition of new works, total sanctioned cost of the projects as revised upto December 31, 2009 was Rupees 2451.93 crore.

Against this funds of Rs 2261.19 crore were released by the state government between November 2007 to December 2009. "The work was suspended from September 2009 due to stay order of the Supreme Court. The progressive expenditure against the two works amount to Rs 1776.57 crore upto December 2009," the report said.

"Audit of two works conducted during December 2009 to February 2010 revealed instances of financial irregularities. These resulted in extra expenditure of Rs 66.48 crore on the works besides locking of funds on premature procurement of material, ultimately increasing cost of the works," it said.

The CAG said the two works involved construction of boundary walls and flooring of Mirzapur/Chunar stand stone for which blocks were transported from these places to Bayana in Rajasthan (670 kms) for sawing and carving and finished stones were transported to Lucknow "We are of the view that if sawing and carving of stand stone was done at Mirzapur/Chunar itself by engaging cutters there and transporting finished stones to Lucknow (315 kms) expenditure on transportation could have been reduced to the extent of Rs 15.6 crore due to reduction in distance of transportation (1120 kms to 315 kms)," the CAG said.

The auditor said such possibility for reduction in the cost of the work was not explored by the RNN management. It pointed out that certain works were executed at high rates which also resulted in extra expenditure to the tune of several crore rupees.

The auditor also noted that in November 2007, the joint purchase committee finalised labour rates of making boundary walls, installation and fixing stone blocks floorings at Rs 1890 per cubic foot, Rs 1750 per cubic foot and Rs 2400 per cubic foot.

However, in December 2008 the JPC reduced the rates to Rs 1300 cft, Rs 1250 cft and Rs 1750 cft on its own resulting in an avoidable expenditure of Rs 22.16 crore on the quantity executed upto the date of revision of rates in December 2008.

"We observed that reduction in rates inspite of inflationary tendency in the economy during the intervening period was indicative of the fact that the management failed to obtain competitive rates earlier," the report said.

It said that the management replied in December 2010 that due to establishment if machineries and infrastructure by local vendors at Mirzapur at later stage and increase in competition due to more vendors at Rajasthan there was reduction in rates. "We view that benefit of competition could have been obtained from the beginning by adequate publicity of the work," it added.