Kerala - Thiruvananthapuram   

PUCL seeks CBI probe into Supplyco purchases

Special Correspondent

`Had our warnings been heeded corrupt deals could have been prevented'

THIRUVANANTHAPURAM: The People's Union for Civil Liberties (PUCL) has demanded an investigation by the Central Bureau of Investigation (CBI) into alleged corruption in purchases made by the Kerala State Civil Supplies Corporation (Supplyco) between 2001 and 2004.

In a memorandum to Chief Minister V.S. Achuthanandan and Food and Civil Supplies Minister C. Divakaran here on Monday, the PUCL said the "corrupt deals" could have been prevented had the Government heeded the warnings about the goings-on in the Corporation.

The PUCL had submitted representations to the then Chief Minister, the Leader of the Opposition, the Director of the Vigilance and Anti-Corruption Bureau and the Supplyco managing director, informing them of the irregularities in purchase and sale of articles, said the memorandum submitted by president P.A. Pouran and treasurer Jacob V. Lazar.

Excess expenditure

A comparison of the money spent on purchases by the Kerala State Cooperative Consumer Federation (Consumerfed) and Supplyco would show that the Corporation had incurred an excess expenditure of Rs.26 crore between April 2002 and August 2004. The inspection wing of the Finance Department found that Supplyco had suffered a loss of Rs.75 crore between January 1, 2002 and September 9, 2004. The Corporation's turnover fell from Rs.598 crore in 1998-'99 to Rs. 300 crore.

Although the Vigilance Director informed the PUCL in January 2003 that he had ordered an investigation into its complaint, nothing came of the probe. Although the PUCL approached the Kerala High Court with the plea for a CBI probe into the deals, it was not accepted on file on the ground that the court was hearing a similar case.

The Comptroller and Auditor-General of India in the meanwhile found that the Corporation had suffered a loss of Rs.42.04 crore on account of purchase of grams at above the open market prices and another Rs.2.97 crore on transport of goods from the central depots to Supplyco godowns in taluks, the memorandum said.

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