The Comptroller and Auditor General [CAG] of India has criticised Delhi’s Transport department in its second report for 2012 for showing undue favours to a private vendor and continuing with its service despite the need for floating fresh tenders.
According to the report, which was tabled in the Delhi assembly on 6 June, ‘Though the services of Shonkh Technologies International Ltd [STIL] were not satisfactory and the [Transport] department had issued show cause notices thrice [in June 2006, July 2007 and May 2008], the [transport] department did not take any concrete step against the vendor. Inadequate monitoring of the contract had compromised the financial interests of the government.’ ‘It was further observed that STIL had issued more than 42 lakh smart cards as of October 2011. However, the department had not yet initiated any tender process to award the work afresh or to decide upon continuing with the services of STIL,’ added the report. The report also pointed out the lapses in the process of selection and awarding of work for the implementation of smart card for registration of vehicles to STIL were included in the 31 March 2008 report of CAG [Volume- II: Revenue Receipts]. However, no action was taken on the report. Interestingly, Public Accounts Committee [PAC] had also noted the lapses and asked for remedial action in March 2006. However, the Transport department had not taken any remedial action till date, said the CAG.
The report stated further that though Shonkh Technologies started its services in September 2004, the work was only partially executed as implementation of VAHAN [application developed by NIC for registration of vehicles] is yet to commence.
The contract did not bind the vendor to complete work within a deadline, pointed out the CAG report. ‘This is detrimental for the interests of the [transport] department as by not doing the work in a time bound manner, STIL could create a situation where its contract with the [Transport] department will never end,’ warned the report.
According to the report, which was tabled in the Delhi assembly on 6 June, ‘Though the services of Shonkh Technologies International Ltd [STIL] were not satisfactory and the [Transport] department had issued show cause notices thrice [in June 2006, July 2007 and May 2008], the [transport] department did not take any concrete step against the vendor. Inadequate monitoring of the contract had compromised the financial interests of the government.’ ‘It was further observed that STIL had issued more than 42 lakh smart cards as of October 2011. However, the department had not yet initiated any tender process to award the work afresh or to decide upon continuing with the services of STIL,’ added the report. The report also pointed out the lapses in the process of selection and awarding of work for the implementation of smart card for registration of vehicles to STIL were included in the 31 March 2008 report of CAG [Volume- II: Revenue Receipts]. However, no action was taken on the report. Interestingly, Public Accounts Committee [PAC] had also noted the lapses and asked for remedial action in March 2006. However, the Transport department had not taken any remedial action till date, said the CAG.
The report stated further that though Shonkh Technologies started its services in September 2004, the work was only partially executed as implementation of VAHAN [application developed by NIC for registration of vehicles] is yet to commence.
The contract did not bind the vendor to complete work within a deadline, pointed out the CAG report. ‘This is detrimental for the interests of the [transport] department as by not doing the work in a time bound manner, STIL could create a situation where its contract with the [Transport] department will never end,’ warned the report.