Shillong, Jan 13: The Khasi Hills Autonomous District Council (KHADC) has allegedly made irregular payment ₹10.80 crore as mobilisation advances (MA) to two contractors, according to a CAG report for year ended 2018-19.
The payment was made between July 2018 and November 2019 to the two contractors – K Warbah for construction of KHADC office building at Shillong with ₹5 crore and Rodeka Enterprise for construction of Traditional Cultural Centre at Umiam, Jingkieng Kalong with ₹5.8 crore.
“It is seen that the contractor (K Warbah) had been paid MA amounting to ₹5 crore (67 per cent) against the total work order value of ₹7.50 crore. In respect of contractor Rodeka Enterprise, ₹5.80 crore (77 per cent) of the value of the work ₹7.50 crore was paid in six instalments,” it said.
Audit observed that payment of MA to both the contractors was made without submission of a bank guarantee bond.
“Besides, copy of written applications of the contractors requesting for payment of the MA were also not found on record,” the CAG said.
Further Audit observed that adjustment of the MA has been made without considering leviable interest amount of ₹1.98 crore.
“Thus, the KHADC had not only defaulted in making payment of MA without written request from the contractors and execution of bank guarantee bonds but also defaulted in non-recovery of interest amount of ₹1.98 crore, resulting in extension of undue financial benefit to the contractors to that extent,” it said.
KHADC Executive Committee secretary had stated in August 2022 that the Council is governed by the United Khasi Jaintia Hills District Fund Rules, 1952, as amended from time to time, wherein a separate chapter on “work expenditure” is dealt, hence the question of application of Central Public Works Manual does not arise.
The Council also did not adopt the said manual. The Secretary had added that while sanctioning mobilisation advance the provisions contained in Rule 101 of the rule ibid was followed.
Further, the Superintending Engineer, KHADC in its reply in October 2023 while accepting the audit observations stated that such practices will be avoided in future, only 15 per cent mobilisation advance has been included in the new Tender agreement from duly approved by the EC.
