Audit Observations
Para -84: But for Calculation and levy of penalty,
“The time frame agreed” needs to be specified in
the DWA, as the DWA is a legal document and
binding on both the parties for execution
Para-85: We can certify the expenditure, after
a) Obtaining approval of the MD, BESCOM as the
proposed expenditure in RS.313.13 Lakhs
b) Furnishing the details of budget grants
sanctioned to NJY Phase – III works
Para 87: Discussed the negotiation issue and
observed that:
As per para 44 (130 in PLO dt:25/05/2016) MD,
BESCOM has directed to call for negotiation
meeting on 26/05/2016. But, the meeting
proceedings is not traced in the file, instead as
per para 52, it is noted that the negotiation
meeting was held on 17/05/2016 and requested
to award the work at the negotiated rate as
agreed on 17/05/2016.
For Which D(T), BESCOM has accorded approval
vide para 53 (135 in PLO Dt:3/6/2016). Hence, it
could not be assessed as to whether the
Para 88 (1): Once Managing Director has made
remarks in the file, we have to execute the orders
as per directions and again we have to place the
subject before MD for approval
Para 88 (2): In this case orders we have to place
the results of negotiation and concurrence from
MD is to be obtained before issued of award.
Replay
For calculations and Levy of penalty, the time frame
agreed by the both the parties is specified in the
DWA as per clause 7 of payment vide Sl. No. 1,2,3
and 4 stages of payment separately and to read
accordingly.
a) Even though the total expenditure on TPIA is
313.13 Lakhs it’s combined amount of 6
enquires and the details of Budget required
for each enquires is as in below table and the
amount varies from minimum 36.22 lakhs to
Maximum 62.99 Lakhs as stated below
1. TPIA-1- Madhugiri Dv - 49.28 Lakhs
2. TPIA-2 –Tumkur & Tiptur -56.88 Lakhs
3. TPIA-3 –Davanagere – 62.99 Lakhs
4. TPIA-4 – BRC - 36.22 Lakhs.
5. TPIA-5 – Ramanagara – 50.34 Lakhs
6. TPIA-6 – Kolar – 57.42 Lakhs.
b) The total Budget grants available for
sanctioned for NJY Phase – III for 16-17 is
600 Crores
During negotiation meeting held on
26/05/2016 with D(T) BESCOM all the 6
enquires are negotiated but the firm accept
to reduce the % quotes for highest rate i.e.
.72% and .89% to 0.65% . But the firms are
not accepted to reduce the other enquires
which all are already at the lowest rates from
0.65%, which are .62%, 0.49%, 0.49% and
0.55% as noted in the para 81 and can be
taken note. Hence the Negotiation process
completed and the same is highlighted to MD
BESCOM by DT and approval accorded in PLO
Dt: 03/06/16.
Observation complained in Para 87.
As complained in Para 87 to consider the
negotiation meeting of 26.05.2016 and the
percentages are well with in the limits to
accept and accord approval to issue DWA’s to
the Firms separately.