While the first report dated May 14, 2015 pointed out violations of the Karnataka Transparency in Public Procurement Act (KTPP Act), 1999, 2000 in connection with developmental works carried out on the request of MLA Mangaluru North, Mohiuddin Bava by Nirmiti Kendra, the second report detailed the violations and procedural lapses committed by the same agency in respect of the renovation of the Town Hall. (read report here)

Hephsiba told Newskartnataka.com that she had written to the Secretary of the Urban Development Department seeking a Lokayukta inquest into the irregularities observed in the execution of both these projects before her transfer.

Surathkal Development works:

The report related to the Rs. 3 Crore development project that was designed to provide basic amenities at Surathkal, states that under the KTPP Act (1999, 2000) the Nirmiti Kendra, is only permitted to take up works related to the construction of houses and buildings that require the use of environment friendly, low cost building technology, innovative building materials and precast technology, upto a cost estimate not exceeding Rs. 2 Crores. In the instant case, the nature of works stands in contravention to the prescribed work in the Act.

After MLA Mangaluru North, Bava obtained the state govt.’s sanction for the Rs. 3 Crore project, he requested the MCC on March 1 2014 to hand over 58 various works to the Nirmiti Kendra.  Following this request, on March 3, 2014 the administrator of the MCC moved the subject file to the DC, A B Ibrahim for administrative approval to entrust the works to the Nirmithi Kendra. The DC, Ibrahim, who is also the chairman of Nirmiti Kendra signed off on the proposal on April 30, 2014. The Kendra went ahead and completed 19 works that cost approximately, Rs.1.09 Crore.

Interestingly, the Project Director of Nirmiti Kendra, Rajendra Kalbavi despite there already being an administrative approval, sought another administrative approval from the MCC to start the work, on January 19, 2015  with a request to release the full sanctioned amount of Rs. 3 Crore. On March, 5, 2015, Kalbavi followed this request with another letter to the MCC claiming the Deputy Commissioner had already given administrative approval for the project and the amount of Rs. 1.5 Crore that was approved as per the government order (NAE 85 SFC 2014) be released to the Kendra to continue the work. By this time the former Commissioner Hephsiba was in the Commissioner’s seat and she sought a clarification from Secretary, Urban Development Department on the subject.
 
The reply of the Secretary, Urban Development Department,  to the  former Commissioner Hephsiba’s query, opened a can of worms for the MCC and the government agency Nirmithi Kendra. In his reply the Secretary, categorically stated that money can be released only if certain conditions are met. These conditions mainly include a strict compliance with the provisions of the KTPP Act, and the award of the project through the E-tender route via the E-procurement portal. Other conditions that needed to be met, included technical sanction from the competent authority, a utilization certificate for the spent money should be produced, and a third party should inspect the work.

The former Commissioner found that the required conditions had not been met, declined to give go ahead and release the money, and followed it up with a letter to the Secretary Urban Development Department, seeking an inquiry into the entire episode. In the bargain, only 19 of the 58 developmental works are complete while the rest are pending.

Related News:

Town Hall renovation: Nirmiti Kendra likely to take up second phase too, despite earlier objections
Rai hints that the left over Town Hall work will be done by Nirmithi Kendra
Ex-Commissioner Hephsiba’s report exposes Town Hall renovation mess; Ivan demands probe