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OC contract for website hosting under cloud

The Central Bureau of Investigation — which is probing irregularities in the conduct of the Commonwealth Games by its Organising Committee (OC) — has allegedly found several discrepancies in its award of a contract for email and website hosting services to a private firm.

delhi Updated: May 17, 2011 00:04 IST
Abhishek Sharan

The Central Bureau of Investigation — which is probing irregularities in the conduct of the Commonwealth Games by its Organising Committee (OC) — has allegedly found several discrepancies in its award of a contract for email and website hosting services to a private firm.

An agency source said that the OC allegedly paid over R100 crore to the firm for hosting email accounts and its website for three years, without proper evaluation of the rate(s) quoted by the firm.

Despite a specific order issued by the OC in February 2010, for mandatory verification of the contract terms and the rates offered by the firm, a few accused officials allegedly released payments to it on the basis of “Work Done” reports submitted by it, said the source.

This was despite the fact that the OC Technical Committee had objected to the allegedly exorbitant rate/s offered by the firm at the time when it had submitted its first invoice.

But the evaluation and recommendations of the Technical Committee were not allegedly considered by the OC.

“Comparison of costs offered by other web and email service providers has revealed that the rates quoted by the firm were very high, especially rates paid by the OC for email hosting,” said the source.

The contract entailed provision of facilities, including the domain name, its registration, website hosting and email hosting of several hundred accounts. The contract signed by the OC with the firm was allegedly “not explicit,” said the source.

The probe has shown that there were several alleged discrepancies in the purchase order and payments made to the vendor by the OC.

The OC’s purchase order was issued almost a year after the contract was awarded to the firm, according to the source.

“The purchase order pertained to only part of the total payments made to the vendor (firm), while the OC had made its payments based on the invoices submitted by it,” said the source.

According to the OC’s purchase order, the charge for web hosting was pegged at Rs 20,000 per year by the firm, while email hosting rate was Rs 3.4 lakh per year.

The purchase order allegedly did not contain any provision for applicable rates in case of increased email space or towards the rate for one gigabyte space.