MCG starts inquiry into funds embezzlement

The Municipal Corporation of Gurugram (MCG) has initiated an inquiry into allegations of embezzlement of funds on the basis of fake certificates, officials said

The Municipal Corporation of Gurugram (MCG) has initiated an inquiry into allegations of embezzlement of funds on the basis of fake certificates, officials said on Tuesday. At least 10 MCG ward councillors have complained in this regard, stating that certificates bearing their signatures had been illegally replicated and doctored, based on which MCG officials had issued funds to the civic body’s contractors.

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MCG has so far found at least 12 such “fake” certificates.

Last year in June, the MCG had introduced a policy whereby its officials can only disperse funds to its contractors after the ward councillor of the area issues a “work satisfactory” certificate. Localised works, such as repair of roads, sewerage, stormwater, footpaths, green belts and streetlights, come under this policy.

Under the policy, ward councillors have to physically examine the said work and accordingly decide whether the project has been completed and that the quality of work done is according to the contractual agreements, based on which approvals are issued.

On Monday, MCG commissioner Vinay Pratap Singh issued an internal officer order, a copy of which is with Hindustan Times, stating that the civic body has found certificates, based on which funds were issued to contractors, which did not mention the date or the type of work being executed in the area. He further said that the absence of such key details raises suspicion of fake certificates being issued repeatedly and hence, the matter needed an inquiry.

“Until the completion of the inquiry, no further payments will be made by the account branch of the MCG regarding projects which are under scanner. Further, until the inquiry period is over, I have directed that all current charges and responsibilities of all executive engineers concerned and the assistant engineers and junior engineers will remain withheld. The matter is of great concern and action would be taken against officials concerned, contractors found to be negligent or guilty of discrepancies as per law,” said Singh.

In his order, Singh appointed MCG joint commissioner Pardeep Ahlawat as the inquiry officer to look into the matter and submit a report within two weeks.

As per Singh’s order, Ahlawat will check the details of all bills that had been raised and paid to contractors through this process. Further, he will physically check the execution of all such works on-site and subsequently, verify the credibility and authenticity of the certificates issued by the respective ward councillors, including their signatures.

“We have found at least 12 certificates bearing the signature of councillors where details such as type of works and dates are found to be absent. Concerned MCG officials, councillors, and contractors have been issued notices to come to my office on Friday where versions of each of them would be sought and the inquiry would subsequently be taken forward,” said Ahlawat.

As per MCG officials privy to the matter, on late Saturday night, Singh had attached copies of such fake certificates on a WhatsApp group having all MCG councillors and officials, and asked councillors if they had sanctioned any of these. Subsequently, 10 councillors replied in the negative, terming them as fake.

“The certificates are completely fake and I have already submitted this in writing to the MCG. Councillors keep a registry number of each certificate they issue in such matters, and the corresponding numbers on the fake certificate do not match this. Further, even the area jurisdiction in most certificates does not match the area coming under the councillor’s purview. It is a clear case of certificates being scanned and accordingly doctored for getting funds sanctioned,” said RS Rathee, MCG councillor of Ward 34.

The area jurisdiction of MCG’s engineering wing is divided into eight zones across the city. As per MCG officials privy to the matter, the “fake” certificates have been issued for works relating to zones 4 and 7. Rathee’s ward falls under Zone 8.

In the last 12 months, there have been several instances wherein the MCG has paid the entire project amount or a majority of it to contractors despite work not starting or work being midway. In each of these cases, the “work satisfactory” certificate was never sought.

As per the Haryana Municipal Corporation Act, 1994, municipal bodies can only make payments to contractors for running costs or once the project is entirely completed.

In December last year, the MCG’s engineering wing had allegedly paid Rs 35 lakh to a contractor for constructing a 1.7-kilometre track between Khusbhoo Chowk and Bristol Chowk, along the Gurgaon-Faridabad Road, even though only 600 metres of work, worth Rs 11 lakh had been completed. In February, this year, it was discovered that the engineering wing had paid Rs 1.67 crore, the total project cost, to a contractor for building a two-kilometre road in Ward 1 even before the construction had started.

In September, the MCG’s engineer wing had allegedly paid a contractor Rs 50 lakh, nearly a quarter of the total project cost of Rs 2 crore, despite only 10% work being completed on ground. The project involved laying of pavement tiles across MCG’s Ward 25.