Sunday, December 28, 2008

Committee for BIAL audit

Committee for BIAL audit
BY ASHWINI Y.S.
BENGALURU







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The committee is trying to establish how the projected cost of Rs 1,200 crore soared to Rs 2,700 crore towards the end of the project.
The Public Under takings Committee, which has initiated a probe into Bangalore International Airport Ltd, has decided to call for a special audit to ascertain the reasons for steep cost escalations in the international airport project.

The 21-member committee comprising MLAs and MLCs constituted under the Karnataka Legislative Assembly Secretariat will submit its report on Bengaluru International Airport to the government by February. In four discussions held by the panel so far, all its members agreed that the Bengaluru Airport is not up to the mark and does not meet the requirements of an international airport.

The committee is trying to establish how the projected cost of Rs 1,200 crore soared to Rs 2,700 crore towards the end of the project. Congress leader D.K. Shivakumar, one of the committee members, told Deccan Chronicle that BIAL chief Albert Brunner, who is set to be replaced next month, will not be relieved from his position until he produces proper accounts. “BIAL acted as the project contractor all along. No tenders were called for and work was entrusted to the consortium’s arms in Germany and Switzerland. At the end of the day we have a matchbox-like structure. The company has exploited the government. The committee has decided to entrust the special auditing on BIAL to a private firm,” Mr Shivakumar said.

“The aerobridge at this airport cannot serve more than four flights, even though BIAL had claimed that it could serve 12. As a result priority is being given only to international flights,” he added.

Mr Shivakumar also said BIAL had quoted very high rates on materials used for the project. “The pricing is three to four times higher than normal rates. The committee may ask the state to pay BIAL and obtain ownership rights to the airport if the company does not bring the airport up to international standards,” he said.

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