Why choose incompetent firms?

As the October Commonwealth Games are drawing near, instances are fast emerging of how goof up by civic agencies in awarding tenders to companies not competent enough led to delay of some of the crucial projects. HT reports

As the October Commonwealth Games are drawing near, instances are fast emerging of how goof up by civic agencies in awarding tenders to companies not competent enough led to delay of some of the crucial projects.

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During the course of routine investigations, the Central Vigilance Commission (CVC) has found irregularities in awarding contract to a Mumbai based company M/s Sportina Payce Construction (India) Private Limited. The company was awarded a Rs 63 crore contract in April 2008 to build the training venues at the Games village.

The tenders were awarded by Delhi Development Authority (DDA), the agency which is developing the Games village and three sporting venues.

The CVC has observed that the Mumbai based company did not have the competence to complete the massive work. It has now directed the DDA’s vigilance wing to investigate the matter and fix responsibility.

A few months before the commission inquiry, the DDA had scrapped the company’s contract in October 2009 for delay in completing the project. The deadline for completing the venues was December 2009.

Officials involved in games preparations said had the DDA made the effort to check the credentials of the company before the contract, this situation could have been avoided.

“They scrapped the contract after over a year of awarding the contract. What took them so long to notice that the company was hardly doing any work,” said an official, wishing to remain anonymous.

The company was to build four air conditioned indoor training venues for swimming, athletics, wrestling and weight lifting.

Even DDA officials admitted that the company neither had the money nor the expertise to complete the project. The DDA has now forfeited the company's security deposit of Rs 5 crore for defaulting.