TDP government ignored officials’ objection to release funds to APSSDC, say officials

Sudhakar Reddy said the “formation of APSSDC without the Cabinet’s nod” was itself a major violation, and that the officials’ advice to roll out the larger project only after implementing it on a pilot basis in some clusters was also brushed aside.

Additional Advocate General P. Sudhakar Reddy and Additional DGP (CID) N. Sanjay said in a joint press conference in Hyderabad on Thursday that the TDP government had “disregarded the objections raised by the officials on the sanction of funds to the A.P. State Skill Development Corporation (APSSDC)“ purportedly for the establishment of skill development centres, and it resulted in the large-scale siphoning of funds.

They maintained that the funds were released against norms and the relevant agreements drafted on the basis of falsified documents, and the whole exercise was not in accordance with G.O. Ms. No. 4. In some of the agreements, there was no mention of the G.O. at all, they said.

Mr. Sudhakar Reddy said the “formation of APSSDC without the Cabinet’s nod” was itself a major violation, and that the officials’ advice to roll out the larger project only after implementing it on a pilot basis in some clusters was also brushed aside.

Former Chief Minister N. Chandrababu Naidu was trying to disown responsibility for the loss that was caused to the exchequer, but it was to be noted that he appended his signature on various files, which he could not have done without his knowledge, he said.

The FIR registered by the CID related to the misappropriation of government funds amounting to ₹241 crore termed as the proceeds of crime. This was the same amount under the radar of the Directorate General of Service Tax in Pune, the Enforcement Directorate and the AP-CID as well, he said.

The case centered around agreements valued at ₹330 crore signed by Siemens, DesignTech and Skillar Enterprises. These agreements lacked specific dates and file references supposed to be linked to the above G.O., they said.

The CID chief pointed out that Siemens had stated under Section 164 of the CrPC that it had not received any money, and it was not aware of the MoU signed by the A.P. government with DesignTech.