Kerala - Thiruvananthapuram   

Corporation suffers loss in water supply contract

Special Correspondent

Out-of-court settlement with contractor

Thiruvananthapuram: An inflated contract for supply of drinking water to the parched areas of the city has burdened the Corporation with a liability of Rs.11.68 lakh. The Corporation Council on Friday approved a proposal for an out-of-court settlement on the issue that would still leave it with a loss of Rs. 5.91 lakh.

The deal relates to the quotations invited by the Corporation in September 2003 for water supply in tanker lorries. The Corporation approved the lowest quotation of Rs. 690 a trip without issuing newspaper advertisements. The work was awarded to the bidder who later submitted a bill of Rs.19.88 lakh for 2,885 trips at the approved rate.

In March 2004, when a fresh quotation was invited through newspapers, the lowest quotation fell to Rs. 285. Consequently, the Corporation decided to fix the outstanding payment for the supplier at the new rate. The supplier moved Court alleging contractual violation and demanded the full amount instead of the Rs. 8.21 lakh offered by the local body. The Corporation filed a statement of facts before the Court. The Court asked the Corporation for its opinion on an out-of-court settlement at the rate at Rs.490 a trip. But the negotiated rate would still result in a loss of Rs.5.91 lakhs.

Mayor C.Jayan Babu told the Corporation Council that an inquiry would be ordered into the negligence on the part of officials that had led to loss for the Corporation. The chairman of the Health standing committee and the Health Officer would be asked to conduct an inquiry and file a report, he said. Councillors sought stern action against the officials who had failed to issue newspaper advertisements inviting quotations. They demanded that the officials be identified and brought to book. The council unanimously approved the proposal to order an inquiry into the issue.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Action plan to conserve Vellayani lake
Speed governors can save Rs.87.54 crore for KSRTC
Reorient decentralisation: Patnaik
A crusader for world peace
Professional running of coop. banks sought
Chikungunya claims four more lives
Young World Quiz to begin on October 5
Corporation suffers loss in water supply contract
Antony to blame, says Chief Minister
Around The City
In Thiruvananthapuram Today

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu