CAG report shows huge wastage of exchequer money @NIPER

CAG (DPC Act 1971) Audit and inspection report on the account of NIPER for the year 2009-10 obtained by RTI. CVC has written a two page long para vividly describing how public money is misappropriated.

Relevant extract are as under:

The Department of Science and Technology, Ministry of Science and Technology, Govt. of India sanctioned first installment of 250.00 lakh as financial assistance to the project “Facility for Toxicity Screening on nano Particle used for Drug ……Its mechanism of action” for purchase of Transmission Electron Microscope (TEM). Quotation for the same was much higher.

Institute took up the case with GOi for release of additional grant of 1.92 crore. GOI sanctioned 92.13 lakh

Rest of the cost of the equipment approx 1 crore was met by NIPER from its own sources.

Equipment was purchased from M/s EFI Company Europe through their agent M/s Analytical equipment Pvt. Ltd, Mumbai, only and only one party responded to NIPER tender notice (Custom made specification against the Competition Commission of India Rule?)

Para 4 Irregular purchase of imported equipment valuing Rs. 432.98 lakh

In this regard following observation were made by CAG,

1.     Why the purchase procedure mentioned under General Finance Rules, 2005 e.g. regarding inviting global tender was not followed in purchase of imported equipments in all the cases

2.     Reason for delay in installation may be apprised to audit.

3.     Why the NIPER admitted to fund the purchase of equipment from its own sources and detailed of sources from which the equipment was funded, may be furnished to audit

4.     What benefits the institute has envisaged from the TEM laboratory.

In response: NIPER kept mum about point no 1, 2 & 3 and in response to point no 4 wrote “the equipment is installed recently, therefore it is too early to assess its utility for the purpose other then teaching and research”

CAG: the reply is general one, Para stands

Question remains from where Rs. 1 crore came? Who is the beneficiary of single quotation purchase of 432.98 lakh?

            
           The indenter? Purchase committee? Director? or somebody above?