Mizoram Wasted Rs 71.09 Lakh in Indoor Stadium: CAG

Aizawl, Apr 20 : The Mizoram state's public works department has incurred an unauthorized and wasteful expenditure of Rs 71.09 lakh in the proposed construction of indoor stadium at Aizawl, according to the Comptroller and Auditor General of India.

The CAG, in its report for the year ended March 31, 2010, stated that the department prepared a fictitious bill for Rs 71.09 lakh and disbursed it to the contractor even before the site for the indoor stadium was allocated and before the project was administratively approved with budgetary allocation and expenditure sanction.

DoNER ministry approved Rs 13.05 crore under NLCPR for construction of the indoor stadium, of which Rs 11.75 crore was central assistance and Rs 1.30 crore was loan component to be raised by the state government.

The stadium was proposed to be constructed at the New Secretariat Complex.

However, since the government was not in favour of constructing it within the government complex, it was decided in March 2009 to shift the site at Pitarte Tlang, within the veterinary complex at Republic Veng in Aizawl.

Thereafter, the sports and youth services department accorded administrative approval at an estimated cost of Rs 13.05 crore.

However, even before finalization of land allocation for the project, the state PWD issued a work order in 2008 to a Guwahati-based contractor to execute the work at tendered value of Rs 9.81 crore, the CAG report stated.

Though the clearance of tender drawing was pending (as of October 27, 2008) with the client department (sports and youth services), the PWD project division-I fictitiously prepared running account for 71.09 lakh to execute earthworks and piling (boring) during July 8, 2008 to January 19, 2009 despite the fact that foundation stone was laid on September 19, 2008.

Despite no provision in the state’s budget of 2008-09 for implementation of the project, the chief engineer, PWD (building) unauthorisedly allocated Rs 102.50 lakh, facilitating the executive engineer to make payment.

The EE then released Rs 11.87 lakh (out of RA bill of Rs 71.09 lakh) in December 2008 to the contractor. The balance amount of Rs 59.22 lakh was released in August 2009.

Shifting the project site after the state PWD incurred an expenditure of Rs 71.09 lakh rendered the entire expenditure wasteful, the CAG report stated.