DIMAPUR, SEPTEMBER 1 (MExN): A news report in the national media today revealed that contract work for the Wokha-Merapani road in Nagaland state has been awarded to a firm whose Managing Director is a “tainted” MLA from Uttar Pradesh.
According to a report published in The Wire, the Union Ministry for Road Transport and Shipping awarded the multi-crore contract to CS Infraconstruction Limited barely two months after its Managing Director Uma Shankar Singh, a Bahujan Samaj Party (BSP) MLA, was disqualified by the Election Commission (EC) from the last Uttar Pradesh Assembly for procuring that state government’s road contracts in his name.
Singh was disqualified in January, 2017 by the UP Governor at the direction of the Election Commission for violating the Representation of People’s Act.
By then, the report informed that Singh had merged his company, Chhatrashakti Construction with CS Infra, a partnership firm he floated in 2002 and of which he was the “managing partner”. The BSP leader meanwhile changed his designation in CS Infra from “managing partner” to “managing director.” However, the company logo of CS Infra mentions Chhatrashakti Construction and its website also speaks of Singh’s “able direction” in the company.
In the midst of this controversy, the firm was awarded a multi crore contract by the National Highways and Infrastructure Development Corporation Limited (NHIDCL) on March 31, 2017 for “Rehabilitation and upgradation of (the) Wokha-Merapani Road” in Nagaland State.
“NHIDCL’s decision may likely fit the technical requirements under the Act (such as issuance of the contract not in Singh’s name but in some company official’s name; that there may be a loophole as he is a state legislator and it is a central government contract) but it certainly raises the question of moral propriety, considering Singh continues to be directly associated with the company while being a legislator, for which he was indicted by a constitutional body,” the report in The Wire observed.
Speaking to The Wire, the NHIDCL Chairman and Director (Financial and Administration) Sanjay Jaju argued, “We go by the information provided by the company while they bid for a contract. We follow the rules set for RST (retail sales tax); we don’t see who owns the company, whether it is by an MLA or MP, etc. The credentials of this company made it eligible for the contract.”
He however added that “If someone raises objection to it (in regard to the EC order), we will then proceed accordingly.”
Meanwhile, it has been revealed that none of the ten road widening and strengthening projects mentioned on the website of CS Infra, are outside of UP, let alone in the northeast, which are prone to heavy rainfall and landslides. The NHIDCL’s contract approval letter, according to The Wire, awarded the contract to CS Infra for Rs 47,56,90,000, stating that “the construction period is one year from the appointed date.” CS Infra sub-contracted the NHIDCL project to a local company named Naga Construction.
According to The Wire, in a letter dated April 20, 2017, Ravitosh Asthana, Vice President (Commercial) of CS Infra, informed Naga Construction of the allotment of the sub-contract for “rehabilitation and upgradation of Wokha-Merapani Road” and entering into a legal framework.
Work on the road is yet to begin even though the Nagaland public works department handed over the road to NHIDCL a month ago.
Speaking to The Wire, Nagaland Minister for Geology, Mines and Border Affairs, Mhonlumo Kikon said that the road has deteriorated over the years. “Every year, it is further damaged by landslides triggered by the rains. Last year, the road closed for more than two weeks due to landslides, hampering day to day life and connectivity. The public was happy when the road was taken up by the NHIDCL for widening and upgradation,” he was quoted as saying.
When The Wire asked about the delay in starting the project even though the sub-contract was signed in April, Naga Construction proprietor Hukiye was quoted as replying: “I have not been able to begin work because I am unable to furnish the huge amount that CS Infra has asked me to give it as bank guarantee.”
“While usually, only 5% of the total amount of the contract is asked to be furnished as bank guarantee, CS Infra has asked me to pay about Rs 4.5 crore, which no bank is willing to give me for the project,” he was further quoted as stating.
The Naga Construction Proprietor added: “I have informed CS Infra about my decision to get out of the sub-contract for the inability to furnish such a huge bank guarantee, I have not heard since. So I am considering myself out of the contract now.”
As per the report, the NHIDCL Chairman and Director (Financial and Administration) Sanjay Jaju informed that the expected date of starting work on the project is September. “We have also changed the earlier appointed date in the contract from April to September. The project will have to be completed in a year from the appointed date,” he added, according to The Wire.
.jpg)
.jpg)
