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‘Goa govt lost at least Rs100 crore due to financial mismanagement’


Poor governance caused Goa a loss or extra expenditure of at least about Rs 100 crore in various key projects during the financial year 2013-14, according to the Comptroller and Auditor General of India (CAG).

The Goa government would have to bear an extra cost of Rs 60.51 crore for the Panaji water supply project under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Even though a sum of Rs 122 crore was allocated for seven projects under JNNURM in 2005, the Corporation of City of Panaji (CCP) could not implement even a single project by availing the central grant owing to “indecisiveness and poor management.”

The CAG report said, “As the project for water supply to Panaji city could not be completed during the scheme period, the state would have to bear the balance cost of Rs 60.51 crore.”

Similarly, the state government granted contract to United Telecoms Limited for setting up of Goa Broadband Network at higher rate without considering the more economical option of Bharat Sanchar Nigam Limited, which led to an “avoidable expenditure of Rs 17.40 crore, besides loss of interest of Rs 5.22 crore on mobilization advance.”

The CAG also found mismanagement in the construction of the athletic stadium at Bambolim. During the construction “there was large deviation in the original estimated quantity on items of filling and compaction due to change in site.” The government invited tenders without revision of estimates. The “failure of the Sports Authority of Goa to obtain clarification on the exorbitant rates quoted by the agency and acceptance of offer led to an additional expenditure of Rs 1.33 crore.”

The financial and project mismanagement led to a loss of over Rs 3 crore during the year. The GMC allowed a private firm to run a pharmacy without proper agreement and without revision of rent for a long period which resulted in “undue benefit to the contractor, besides loss of revenue to the tune of Rs 1.06 crore.”

According to CAG, as the GMC does not maintain reserve stock of medicines, the hospital resorted to “local purchases at higher rates resulting in avoidable expenditure of Rs 1 crore.”

The GMC Yatri Niwas project also caused loss. The Yatri Niwas was constructed in June 2008 for providing accommodation to the patients’ relatives and bystanders. The building also provided commercial space of over 275 sq m with a rent of Rs 500 per sq m. However, the “inordinate delay in finalizing tenders and allotment of shops resulted in loss of revenue to the tune of Rs 1.01 crore.”

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