Officials-contractors' nexus comes to fore in NESL

NAGPUR: There seems to be no end to the unholy nexus between officials and contractors of Nagpur Municipal Corporation (NMC) though an inquiry was on into previous cases exposed by TOI. The latest case of nexus was bared in Nagpur Environmental Services Limited (NESL), a NMC-owned company which is responsible for restoration of trenches and potholes left out by Orange City Water Private Limited (OCW) under 24x7 project.
TOI has repeatedly been highlighting the nexus between officials and contractors in works, especially below Rs50,000. Municipal commissioner Shyam Wardhane had taken a serious view of the cases and ordered an inquiry into such works being done or completed and had cancelled tendering process of the one related to the health department.
The fresh case came to fore from the agenda issued for the meeting of NESL board of directors held on Tuesday. NESL administration had tabled a proposal before the directors to approve work order of five tenders worth Rs99.45 lakh. Shockingly, it was found that the lowest bid and quotation in the tenders had the same amount, the estimated cost of the work prepared by the administration.
NESL had prepared an estimation to restore trenches and potholes dug up for 24x7 water project in 10 zones. NESL had prepared five tenders comprising works of two zones each. The estimated cost was mentioned as Rs19.89 lakh in all the five tenders. Contractor M V Verma quoted the same amount for the first tender, A R Singh for the fourth tender and C V Nayudu for the remaining three tenders. The price bid quoted by the three contractors emerged as the lowest bid. Though it was not mentioned in the agenda, all the three contractors reportedly submitted tenders for other zones in which they did not emerge as the lowest bidders.
The nexus between contractors in getting the works at their desirable rates thus results into financial loss to the civic body. According to norms, NMC should not encourage such practices. Still, the NESL administration proposed to issue contracts to the contractors and tabled the proposal for approval before the board of directors.
Slamming the officials, corporator Parinay Fuke said that NMC was badly affected due to nexus between officials and contractors. "NESL board should not give nod to such proposals and invite fresh tenders to ensure transparency and competitive bid. Action should also be taken against the officials who prepared the proposal," he said.
NESL executive director Azizur Rehman refused to comment. "Proposals and working of NESL board cannot be disclosed it being a limited company."
The proposal also exposed the negligence of OCW in restoration of trenches and potholes dug up by it. NMC general body, mayor Anil Sole and civic chief had time and again directed the OCW to ensure restoration work within a stipulated time. A decision was taken to execute restoration work by roping in other private contractors in case of OCW's negligence by recovering the cost from the operator along with some extra charges. Accordingly, the NESL has decided to execute the works in all 10 zones.