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CAG points at loopholes in MEA’s Global Estate Management working

The Global Estate Management (GEM) of the Ministry of External Affairs (MEA) came under scanner for its ‘inefficiency’ in dealing with issues of chancery-cum-residential facilities for its embassy officials abroad.

It was learnt that despite being allotted lands by the foreign countries, facilities were not built, which led to an unnecessary additional cost of nearly Rs 70 crore in the last five years in terms of renting premises and for the maintenance purpose.

It was learnt that in many cases the consultant and the embassy officials failed to take the right decision on what they want to do with the land allotted to them on a priority basis. It was also learnt that in some cases, architects and construction agencies were changed from time to time, which led to a huge loss to the national exchequer.

What came as a surprise is that in few cases construction work of India’s own embassy building could not be taken up even after 17-25 years of the allotment of lands in Uzbekistan and Ukraine.

The audit agency had found that in 1989 former USSR had allotted a land measuring 10,000 sq. m for the construction of Indian Consulate General and Cultural Centre. ‘But the construction work has not been completed even today. Similarly, in Ukraine dilapidated building was allotted to the Indian government at a cost of Rs 2.53 crore. However, we have noticed that the Mission over the years kept changing the purpose for which the building was required, which resulted in delays in the commencement of the project,’ CAG audit observed.

While replying to the audit agency’s observation, MEA has replied that the Ukraine land laws had been changed in 2011 and they are waiting for further approval. However, the CAG refused to buy this theory and claimed that the property acquired in September 1995 had not been out to use till March 2014.

In some cases, inconsistency in quotation also led to delays causing severe problems for the staffs posted abroad. In Brazil, it was found that the bidders had applied different norms for working out cost escalation.

‘On the advice of the property team of the ministry that visited Brasilia in November 2008 the tender was cancelled and offers turned down due to inadequacies in the tender document framed by the consultant. This lea to avoidable expenditure of Rs 8.62 crore by the Indian Embassy in Brasilia,’ CAG report reads.

Mainly such discrepancies and delay in execution of work was noticed in China, Spain, Mauritius, Tanzania, Nepal, Uzbekistan, Ukraine, Brazil, Qatar, Cyprus, Australia, Malaysia and Indonesia among others.

CAG has advised MEA to immediately look into the matter to check further cost escalation and avoid expenses.

The ministry has already accepted that there had been delays in project execution. It also claimed that they are examining all the pending projects abroad and assured that they will do the needful at the earliest.

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