The Crime Investigation Department of the Andhra Pradesh police on Monday initiated a probe into an alleged scam worth ₹3,300 crore in the AP State Skill Development Corporation (APSSDC) during the previous Telugu Desam Party regime.
An official release from the chief minister’s office said the CID had issued notices to former Indian Railway Traffic Service (IRTS) officer Arja Srikanth, who was the managing director and chief executive officer of APSSDC in 2016.
The notices were served based on the statement given by one of the accused who expressed willingness to turn approver in the court and the deposition made by three IAS officers. According to the official release, the TDP government in 2016 established the APSSDC to cater to the unemployed youth by providing them training in various skills and making them employable.
The preliminary probe by the CID has revealed that as part of a project under the corporation, the then government had signed a memorandum of understanding with a consortium involving Siemens Industry Software India Ltd and Design Tech Systems Pvt Ltd, for executing the project worth ₹3,300 crore.
As part of the MoU, Siemens Industry Software India would set up six centres of excellence for skill development worth ₹3300 crore and the state would pay around 10% of the total project cost and the rest would be borne by Siemens and Design Tech as grant-in-aid. “The state government issued a GO granting a work order for ₹371 crore to Siemens and Design Tech to establish centres of excellence. No tender called for the project, and this was done without the approval from the state cabinet. In fact, the CMO even sent out a note about the project and how the state government would benefit from it,” the official release said.
{{/usCountry}}As part of the MoU, Siemens Industry Software India would set up six centres of excellence for skill development worth ₹3300 crore and the state would pay around 10% of the total project cost and the rest would be borne by Siemens and Design Tech as grant-in-aid. “The state government issued a GO granting a work order for ₹371 crore to Siemens and Design Tech to establish centres of excellence. No tender called for the project, and this was done without the approval from the state cabinet. In fact, the CMO even sent out a note about the project and how the state government would benefit from it,” the official release said.
{{/usCountry}}It said the investigation revealed that Siemens Industry had not spent a single rupee from their own resources on this project, but in fact, siphoned off major portion of ₹371 crore contributed by the state. The money was diverted to shell companies like Allied Computers, Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners and ETA Greens, the official release quoting the CID investigation said.
In fact, Siemens Global Corporate Office had conducted an internal investigation into the project and realised that the project manager had siphoned off the money released by the government to shell companies as hawala, and fired him.
“In 2018, the ACB had received complaints from a whistle blower on these allegations. However, the people in power blocked any investigation from taking place and started removing key documentary evidences from the state secretariat,” the release said.
It further said the GST intelligence wing, and IT department was also investigating into the case, even before the present state government took up the investigation.
In light of the development, the investigation agency would be sending notices to other officials concerned in the case, the official release added.