CAG flags diversion of funds, delay in execution of works in Ballari, Mysuru, Tumakuru and Vijayapura

City corporations in Karnataka did not give publicity to tenders and awarded works without inviting fresh tenders

The Comptroller and Auditor General (CAG) of India has said that four city corporations in Karnataka — Ballari, Mysuru, Tumakuru and Vijayapura — diverted funds amounting to ₹108.75 crore (40% of total expenditure of ₹269.28 crore) under the Mukhyamantrigala (CM’s) Nagorathana Yojane towards other works.

The civic bodies did not give wide publicity to tenders and awarded works without inviting fresh tenders in cases of insufficient participation of bidders. The corporations of Ballari and Mysuru awarded six (19%) out of 31 packages to ineligible contractors. The the civic corporations of Ballari, Mysuru, and Tumakuru awarded contracts in 18 (42%) out of 43 packages after the expiry of bid validity, according to the report of the CAG on performance audit of Mukhyamantrigala Nagorathana Yojane (Phase-III) for city corporations, for the year ending March 2021.

The report was tabled in the Karnataka Legislative Assembly on December 23.

The cost of 70% of works in the four corporations was less than the mandated minimum cost of ₹50 lakh. “The civic corporations failed to create tangible assets as the cost of majority of the works was less than the prescribed limit of ₹50 lakh,” according to the report. Incorrect technical evaluation by Directorate of Municipal Administration (DMA) led to project management consultant works aggregating to ₹14.63 crore going to ineligible consultants.

Eleven (69%) out of 16 works in seven packages in Ballari, Mysuru and Tumakuru were not executed due to non-availability of work sites. Further, there were delays ranging from 75 to 547 days in completion of eight works out of 43 packages in Ballari, Mysuru and Tumakuru. Delays were mainly due to non-completion of underground draining works, not shifting of electric poles, before entrusting works.

Expenditure of ₹68.95 lakh incurred in the four cities was irregular, which was attributable to adoption of incorrect rates and payment for earthwork excavation at higher rates.

None of the four CCs attained the minimum allocation of ₹15 crore stipulated in respect of water supply and underground drainage works. Out of four cities, only Vijayapura executed traffic management works.