CWG fireworks: How the nation's money went up in smoke

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Things as simple as charging different prices for the same item in different clusters of delivery caused a loss of nearly Rs.11.06 crore during the Commonwealth Games, the Comptroller and Auditor General of India (CAG) said in its 743-page report - spread over 33 chapters.

The report also claims that the CWG budget went up a whopping 100 per cent since India submitted its bid in 2003. In the May of 2003, an estimate of Rs.296 crore was laid out but when the spectacle was held on August, 2010, it cost the nation a staggering Rs.28,054 crore.

And everything from potted plants to medical equipment is alleged to have gone through twisted pricing methods.

Treadmill prices that'll make you sweat

Calling it a bizarre case, the CAG observed that one of the vendors, Pico-Deepali offered different rates for the same item.

Citing some examples, it showed the price of first-aid kit varying between Rs.4,741 to Rs.3,934; tissue paper varying between Rs.1,580 to Rs.1,314; while a water dispenser's price varied between Rs.11,852, and Rs.9,855.

A six-by-six solid garbage container's minimum price was Rs.91,976 and the maximum was Rs.1,16,446. Price of a treadmill varied from Rs.5,35,654 to Rs.4,59,879, and same was the case with other physical fitness equipment.

Ten times more than the price

Moreover, the prices paid for several items were almost double their price declared at the customs at the time of import.

A pigeon-hole cupboard declared to be worth Rs.5,200 at the customs, was given at a rate of Rs.14,440; a bookcase declared to be worth Rs.2,840 was given at Rs.7,655; a stackable chair of Rs.720 was declared worth Rs.1,542.

Apart from this, the CAG said it has found instances where the organising committee had paid the sub-contractors a price in excess of ten times more than what the sub-contractors paid.

"We also found some instances of sub-contracting (public display boards, UPS, and gensets) by the vendors, which revealed huge differences of 152 per cent to 1,140 per cent between the rates charged to the OC and the rates charged by the sub-contractors," the report said.

The report also said that such sub-contracting was carried out irregularly by the vendors without OC's approval, as contractually required.

Useless medical equipment

"Medical equipment worth Rs.0.43 crore and furniture worth Rs.0.46 crore was not issued for the Games, reportedly because of curtailment of medical venues by the Organising Committee (OC)," the report added.

"Rs.1.49 crore of equipment procured for the Games directly by the hospitals could not be utilised for the Games."

The report said the prices of most of the medical equipment were exorbitant and there was a marked difference between the actual price and the price the equipment was obtained for.

Case of potted plants and buses

For prettier avenues, the Delhi Development Authority, Municipal Corporation of Delhi, New Delhi Municipal Council, Delhi's forest department and the Delhi Parks and Garden Society were told to procure 10 lakh plants each.

The PWB and CPWD were asked to get five lakh plants each.

The CAG report that the target for procurement of potted plants was set 20 per cent higher than the amount estimated earlier and allegedly approved by Chief Minister Sheila Dikshit.

But then the Delhi Police made it clear that the plants had to be kept away from the venues and routes to the stadia due to security reasons.

Even after learning about the police objection, the plants continued to be procured, for Rs.44 to Rs.65 per plant.

Buses kept idle so they'll be clean

For transportation, the Delhi Transport Corporation (DTC) procured 2,500 low floor buses (1,000 AC and 1,500 Non-AC) at an inordinately high price.

The report also found that between September and November 2009, the Corporation procured additional 625 buses at the same high price, exercising an option clause, which cost the exchequer an additional Rs.61.10 crore over the justified cost.

It said that at the direction of the Minister of Transport, the DTC did not deploy 382 of the new low floor AC buses (delivered in March and July 2010), till August 31, 2010 in order to ensure that these remained in 'new and unused condition' for the Games.

Another, 89 low floor AC buses were also withdrawn from between June and August 2010 to avoid further damage to these buses and kept idle.

Reactions

New Delhi Chief Minister Sheila Dikshit has, so far, refused to take the blame for the alleged irregularities and said her government will cooperate with the parliamentary panel which will examine the CAG report.

"I assure you that when the CAG report goes to the (Public Accounts Committee) PAC whatever departments are asked to come and answer any queries, we will cooperate with them completely and fully," Dikshit said.

The Congress also defended Dikshit even as the opposition stepped up its attack after the CAG report was tabled in parliament.

As for former OC boss Suresh Kalmadi, in prison for the alleged Commonwealth Games scam, the Delhi High Court today rejected his plea for permission to attend Parliament's ongoing monsoon session.

The court ruled that his request was 'an attempt to get fresh air outside the prison'.