Nishikant Khajuria
JAMMU, May 11: The high level probe by the Government has prima facie established gross irregularities in procurement of composite pipes worth crores of rupees in Public Health Engineering (PHE) Department.
In its report submitted to the higher authorities, the inquiry committee has confirmed that the purchases were approved by the Purchase Committee from the agency, which had not even participated in the bidding process while verification of documents also virtually establish forgery to keep away the second lowest bidder from supplying the material.
The report further maintains that urgencies expressed in subsequent purchase committee meeting regarding procurement of composite pipes had nothing to do with the indenting divisions having given requisition as the supply was made available after six months of the decision.
Pertinent to mention here that a high level enquiry committee was constituted by the Government on April 2, 2013 to conduct probe into alleged irregularities in the procurement of Polyethylene Aluminium Polyethylene ( PE AL PE) pipes worth more than eight crores by PHE (Mechanical) Procurement Division Jammu/Srinagar.
The three-member committee was headed by Financial Advisor PHE, I&FC Department Chand Ji Bhat as its chairman and comprised of Ajay Sharma, Executive Engineer Mechanical Division RTIC Kathua and Subash Chander, Assistant Accounts Officer FCD Jammu as the members.
The enquiry was conducted on specific parameters, which included the reasons for shifting from GI pipes to composite pipes, requirement of composite pipes and subsequent issues to use divisions, Purchase Committee’s decision to buy material from open market and its validity etc.
The committee visited PHE (Mech) Procurement Division Jammu and collected requisite documents pertaining to procurement of these pipes, receipts and issue records besides physical inspection of the left over stock of composite pipes.
During the course of investigation, the probe panel found gross irregularities in the procurement process. It established that the purchase committee (PC) approved the procurement of composite pipes of same specification at prevailing rates from a firm M/s Gas Master, which had not even participated in the tendering process. This was done notwithstanding the CVC guideline that purchase committee is not authorized to procure the material from non-tenderer at the prevailing prices.
Interestingly, full quorum was not present in this Purchase Committee meeting, held on February 18, 2012 while the decision was also contradictory to its previous meeting on December 16, 2011.
As per sequence of events, Executive Engineer PHE (Mech) Procurement, Division Jammu in his note duly endorsed by Superintending Engineer (Mech) Urban Circle Jammu raised the issue of non-supply of hundred percent materials by M/s ES-SKA Pipes Chennai in purchase committee meeting dated December 16, 2011. It was also mentioned that counter offered rates of composite pipes when offered to M/s Aadhira Process Salem Tamil Nadu and M/s Bansi Dhar Samal Sanitary Engineers, second lowest and third lowest bidders, respectively, were refused by them. Following this a request was made to procure the pipes from non tenderer, which was rejected by the purchase committee in this meeting but approved in second sitting.
Further, on verification of authenticity of the refusals by second and third lowest bidders, the former disclosed that he never received the letter of offer and hence there was no question of his response. Contesting the letter number PHEP11682, dated 12-12-2011, he believed that there was some foul play in the letter while the third lowest bidder M/s Bansi Dhar Samal did not respond to the requests made by the inquiry committee, the reports says.
Contrary to urgency claims made for procuring composite pipes instead of GI pipes that too on 20 percent higher rates, the probe committee found that the material was made available after six months of the Purchase Committee decision.
The comparison of the prices of the two types of pipe also revealed that traditional GI pipes used for years were cheaper. The price comparison will further get enhanced in case the fitting is seven to 10 times costlier than GI pipes, the probe panel observes in its report adding that performance of composite pipes was also not obtained prior to major shift of exchanging the GI pipe requirements with composite pipes.
The performance report of the already issued composite pipes to various divisions was requisitioned by the committee but none of the divisions except one provided the same till finalization of the report.
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