CAG finds irregularities in Invest Goa 2024 spending
Panaji:
The Comptroller and Auditor General (CAG) has observed irregularities in the expenditure of Rs 3 crore in organising the Invest Goa 2024 event by the Goa Industrial Development Corporation (GIDC).
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The CAG said that the GIDC awarded the event to an ineligible bidder, resulting in the loss of GST input credit of Rs 45 lakh.
The CAG said that the GIDC decided on Jan 14, 2024, to organise the one-day Invest Goa 2024 event in collaboration with the Confederation of Indian Industry and the Investment Promotion Board at an estimated cost of Rs 3 crore.
This decision was post facto approved on Jan 20, 2024, by the board.
The event involved hosting 400-500 delegates to showcase Goa as an investment destination and to attract investments, create jobs, and spur economic development in the state.
Accordingly, a request for proposal (RFP) was floated on Jan 16, 2024, under the Quality and Cost-Based Selection (QCBS) method, in which three bidders participated.
Only one bidder, Bandodkar Hospitality Pvt Ltd (BHPL), qualified for the next stage. The financial bid of Rs 3.3 crore, inclusive of GST, was negotiated to Rs 3 crore, and the work was awarded on Jan 24, 2024, to BHPL.
The event took place on Jan 29, 2024, and the vendor was paid Rs 3 crore in Feb 2024.
A CAG officer said that the irregularities were noticed during the audit. The CAG noted that although the RFP had 76 line items describing the requirements under venue, catering, branding, transportation, etc., the money value was not estimated.
The board was requested to approve a lump sum of Rs 3 crore for holding the event without any breakdown or indicative costs for each line item.
Moreover, several line items were vague and ambiguous, such as the absence of specifications for the selection of the venue, the number of special invitees for the gala dinner, and the need for arranging food for 600 guests for an event with 400-500 delegates.
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'This was not in conformity with Rule 136(1) of General Financial Rules, which mandated the preparation of detailed specifications and estimates before the commencement of works,' the CAG observed. 'There was no justification placed on record to explain the unjustified hurry to complete the tendering process and hold the event at such short notice.'
The CAG added, 'The unjustified speed of the process adversely affected participation and competition in the tendering process, which was not in the financial interest of the GIDC.'
The CAG said, 'Three bidders (Axis Communications or AXIS, BHPL, and Cas Ant Events Pvt Ltd or CAEPL participated, of which CAEPL had not submitted documentary evidence in the technical bid and was disqualified.'
The two remaining bidders (AXIS and BHPL) were given marks of 60 and 95, respectively, out of a maximum of 100, the CAG said.
It added, 'Since a technical score of 70 or above was required to open the financial bid, the financial bid of BHPL alone was opened…although AXIS had superior capabilities in terms of turnover, employee count, experience, etc.'
Though the marks were awarded by a three-member committee, the scores given by individual members were not on record, the CAG said. 'All the above indicated that the tendering process was not transparent and competitive to safeguard the interest of the GIDC,' the CAG said.
The CAG said that although the basic eligibility criteria were an 'average annual turnover' of Rs 2 crore over the past three years (2020-21 to 2022-23), the CA certificate furnished by BHPL was for an 'aggregate turnover for three years' of Rs 2 crore.
'Despite this ineligibility, the bidder was not disqualified, thereby vitiating the entire tender process,' CAG said. 'Overall, the tendering process and awarding of work to an ineligible bidder lacked transparency, and there was no proper documentation on the execution of the work.'
Further, the GIDC did not take action on the loss of GST input credit of over Rs 45 lakh, the CAG said, adding that the reply of the management was awaited.
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