Road works: Modest estimate, pricey order!

Road works: Modest estimate, pricey order!
Now the executive engineer of the Jayamahal division of BBMP is in trouble for issuing work orders at a price 81 per cent more than the estimated cost.

The estimated cost of works was Rs 50 lakh. Whereas the works ordered at was Rs 90 lakh!
This is what has happened with asphaltation of roads in Ananthram Layout (ward no 90) in Jayamahal division of Bruhat Bangalore Mahanagar Palike (BBMP).
Now the executive engineer of the Jayamahal division of BBMP is in trouble for issuing work orders at a price 81 per cent more than the estimated cost.
The chief auditor of the Palike has written (letter dated Jan 2, 2008) to the Principal Secretary of Urban Development to recover the excess expenditure from Executive Engineer Nanjundaiah.
Details
The Palike took asphaltation of roads in Ananthram Layout in 2006-07 using the MLA’s local area development funds. The Palike estimated the total cost of 10 works based on the schedule of rates (SR) of the year 2005-06. The total estimation was Rs 50 lakh.
The SR is fixed annually by the Palike considering material cost, labour cost and 10 per cent profit to the contractor. Cost of works are estimated as per the SR of the year.
Executive Engineer of Jayamahal division Nanjundaiah processed the tender and awarded work orders at Rs 90 lakh, 81 per cent above (Rs 90 lakh) of the estimated value.
The executive engineer defended his decision stating that he allotted works as per the SR of 2006-07. However, the chief auditor has rejected his defence as not true.
Only 5.98 per cent
The difference of SR of 2005-06 and 2006-07 was only 5.98 per cent, whereas the difference of the total cost is 81 per cent, he said. The chief auditor has pointed out that evaluation and acceptance of tender itself is not in accordance with Karnataka Transparency in Public Procurement Act 1999.
MLAs get Rs 1 crore each annually, to take up area development works. Grants available for asphaltation of roads in Ananthram Layout was only Rs 50 lakh. The excess amount was borne by the Palike.
The chief auditor has brought the loss incurred to the Palike, to the notice of Palike commissioner and has suggested necessary action against the engineer.
Action
In his letter to Principal Secretary, the chief auditor has said, “the responsibility lies with Executive Engineer Nanjundaiah. Action deem fit may be taken for the recovery of expenditure of Rs 40 lakh”.
Now the ball is in the court of Urban Development Department.