The CAG report said that the Pinarayi government’s award of contracts to the Uralungal Labor Contract Co-operative Society was in violation of the Constitution. The CAG report submitted to the Assembly in 2018 states that Article 14 of the Constitution, the guidelines of the Central Vigilance Commission, the rules of the Central Government and the judgment of the Supreme Court have been violated. The CAG recommended that an investigation be conducted to find the culprits.
Chief Minister Pinarayi Vijayan took the initiative and decided to give the contract to Uralungal in violation of the rules, considering it as a special issue in the cabinet meeting. 215.26 crore was awarded to Uralungal for the construction of the Cochin Innovation Zone building.
According to the rules of the Co-operation Department, Uralungal can only take contracts up to Rs 25 crore. In the meantime, the Pinarayi government sanctioned Rs 50 crore. Later on February 15, 2017, a contract worth Rs 215.26 crore was awarded. Pinarayi Vijayan himself gave the necessary explanatory note in the cabinet meeting. The news was reported by Janmabhoomi on November 27.
Tenders are called for public works contracts as per Kerala Financial Code. The Finance Department has approved the Uralungal Society as an accredited agency for commissioning of public works in July 2014 and August 2015. However, the CAG found that the Finance Department had awarded five contracts worth Rs 809.93 crore to the Uralungal Society, up to February 20, 2016, without complying with the terms and conditions of the CVC (Central Vigilance Commission) or the Finance Department itself. The CAG said the move was in violation of all rules. On page 43 of the third chapter of the report submitted in 2018 after analyzing the documents for the financial year ending March 31, 2017, Pinarayi pointed out the violation of the Constitution by the government on behalf of Uralungal.
The Special Secretary for Public Works explained to the CAG that the decision rests with the Cabinet. The CAG report also said that the Public Accounts Committee had expressed dissatisfaction with the awarding of the contract in violation of the rules. The apex court has directed that the awarding of contracts should be done through public tender or auction, paving the way for healthy competition by ensuring transparency and equal consideration for all bidders. But it was all violated for the sake of settlement.
It was Minister Thomas Isaacs’ finance department that violated the rules. Chief Minister Pinarayi Vijayan also took the initiative to give permission for it as a special issue in the cabinet meeting. Two years after the recommendation, the Pinarayi government has done nothing. In addition, contracts were awarded to the Uralungal Society.
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