The Hindu : Andhra Pradesh News : Irrigation officials’ casual reply draws ire of CAG

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Saturday, Nov 24, 2007
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Andhra Pradesh

Andhra Pradesh

Irrigation officials’ casual reply draws ire of CAG

Ravi Reddy

Y. S. Rajasekhara Reddy, Ministers surprised by out-of-context replies

HYDERABAD: A ‘casual’ reply by irrigation officials to queries raised by the Comptroller and Auditor-General on the irrigation projects on the Godavari seemed to have led to indictment of the department by CAG.

Chief Minister Y. S. Rajasekhara Reddy is said to have summoned Irrigation and Finance Department officials to know the nature of the reply sent to the CAG.

Dr. Reddy and his Cabinet colleagues K. Rosaiah and Ponnala Lakshmaiah were surprised when it came to their notice that the replies were completely out of context, particularly those relating to the revised estimates for Sripadasagar project II phase I works of Rs. 349.85 crore.

The irrigation officials are learnt to have linked the engineering, procurement and construction (EPC) with internal bench marking (IBM) estimates that made CAG find fault with the works.

Turnkey basis

“When a project is given to a firm on EPC turnkey basis there is no need for IBM.

But the officials seem to have insisted on this clause to keep a watch on the works to pre-empt any move by the contractors to form a cartel,” official sources remarked.

Irrigation officials were directed to prepare a detailed reply to the objections raised by CAG on six irrigation projects taken up under the Godavari Water Utilisation Authority.

Realising that little could be done at this stage to deny the CAG remarks, Dr. Reddy asked officials to prepare point-wise reply to the charges.

Doubly cautious

Officials are waiting to present their side of version to the Public Accounts Committee (PAC), which is likely to summon the officials soon.

The Government has become doubly cautious about presenting its version to PAC headed by Yanamala Ramakrishnudu of the Telugu Desam, sources in the Chief Minister’s Office told The Hindu.

They said Government Adviser (Economic Affairs) D.A. Somayajulu has been asked to coordinate the process of preparing a reply to be submitted to Public Accounts Committee.

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