The Hindu  07.10.2010

Audit reveals Rs. 3,500-cr scam in BBMP

Staff Reporter

Misappropriation indicates nexus between politicians, officials and contractors

Misuse of work code:BBMP engineers also allegedly hoodwinked the civic authority by issuing code for works along the metro rail project.

Bangalore: An audit of the Bruhat Bangalore Mahanagara Palike's (BBMP) finances during 2008-09 and 2009-10 fiscals has opened a Pandora's box with the revelation of a Rs. 3,500-crore scam.

According to sources, the initial audit has revealed that work code was sanctioned to infrastructure works worth Rs. 1,500 crore in 2008-09, which is said to be over and above the budgetary allocations. Similarly, in 2009-10, code was sanctioned for works worth Rs. 2,000 crore. A proper auditing into the financial allocations for the infrastructure projects in the budget and the work code issued for the same will only open a can of worms for the BBMP.

Huge misappropriation

A source said that the auditing clearly revealed that huge sums have been misappropriated. “Even the BBMP Commissioner does not have power to approve excess work code. However, the Commissioners who served the BBMP during 2008-09 and 2009-10 (S. Subramanya and Bharatlal Meena) misused their power and approved excess work codes. The officials probably buckled under pressure from MLAs,” they alleged. The BBMP engineers also allegedly hoodwinked the civic authority by issuing code for works along the metro rail project.

“Since the project involves lot of digging work, the engineers have made a submission that large number of works under the extra work code has been taken up at the metro alignment,” the source said.

The auditing also exposed that duplicate work codes and same work code numbers have been issued for different works, pointing to a nexus between officials and contractors. Excess work codes were issued at Malleswaram, R.R. Nagar, Dasarahalli, Yelahanka, Bommanahalli, K.R. Puram, Govindarajanagar, Gandhinagar and Shanthinagar Assembly constituencies.

Damage control

Meanwhile, Commissioner Siddaiah has formed a vigilance squad comprising the Engineer-in-Chief, Technical Adviser and Technical and Vigilance Coordinating Committee to look into the issue.

To find out the exact quantum of funds misappropriated, a circular has been issued directing all executive engineers to provide details under 13 different parameters related to the work code.

As a fallout of this and to avoid misuse of the work code, the BBMP has planned to implement the system followed by the Public Works Department. Under that system, works will have a job number and information on the nature of work, location (zone and ward) and contractors' details will be available.