December12, 7.p.m.2002

Dubai-Muscat-Riyadh link of Kerala Politicians

Keralamonitor.com June 8, 2002.

THIRUVANANTHAPURAM - A leading Contractor approaches the branch manager of a public sector bank in Kerala and asks him to arrange fresh Five Hundred rupee notes worth Rs. 10 lakhs within one day. Without bothering to know the intricacies of withdrawing Fresh Five Hundred rupee notes exclusively by a regular customer , the manager arranges the money. Next day the businessman comes with an empty suitcase and arranges the five hundred rupee notes in it and walks away to an unknown destination. More

Indian Embassy Muscat, Doha lost several crores on rental payment to private parties

Years after land allotment, Embassies in Muscat, Doha still operate from Rented Buildings, Ministry of External Affairs causes severe drain on Government coffers...keralamonitor.com

New Delhi/Muscat--Delay in taking decision by the Ministry of External Affairs regarding construction proposals of Chancery-cum-Embassy residences and other buildings in four missions including Muscat led to avoidable expenditure of Rs 26.27 core on hiring of buildings, reveals the Comptorller and Auditor General report.

Failure on the part of Ministry of External Affairs (MEA) to finalise promptly the construction proposals submitted by the missions at Beijing, Doha, Muscat and Gaborone resulted in avoidable expenditure of Rs 26.27 crore on rentals of buildings hired. Even though most of the embassies in Muscat have their own buildings, the Indian Embassy, Muscat is working from rented buildings.

Even though the Public Accounts Committee in their 108th Report (1987-88)- Eighth Lok Sabha, recommended that a long-term perspective plan to acquire built up properties and construction of buildings is absolutely essential, the MEA has been allowing these missions to function from rented buildings. The CAG has recommended that the Government should draw up long-term plan, which should provide the acquisition of plots and immovable properties, and construction of buildings on plots already acquired based on a pragmatic plan so that rental outgo, which is increasing year after year, is reduced to the barest minimum.

Scrutiny of records of Embassies of India (EI) at Beijing, Doha, Muscat and High Commission of India (HCI), Gaborone revealed that due to delay in taking decision on the construction proposals by the MEA on the plots acquired by Government resulted in avoidable expenditure of rent which these missions paid for hiring of accommodations.

Government of Oman earmarked a plot of land measuring 12,557 sq. meters in August 1974 for construction of Indian Chancery-cum-Embassy residence in Muscat on reciprocal basis but the agreement between Government of Oman and Government of India was signed in December 1991 i.e. after 17 years. As per agreement, the construction of the buildings was to be completed within two years from the date of taking possession of land. A team of three architects was sent by the Ministry to Muscat in July 1993 who submitted conceptual designs on return to India.

In October 1994, M/s Bose Brothers, Architect, was selected as consultant for the construction of the work Chancery-cum-Embassy residence. No agreement, however, was signed with them. Thereafter, no action was taken by the Ministry to appoint the contractor and start work except exchange of correspondence. Subsequently, in August 1999, Ministry selected another architect M/s Babbar and Babbar as consultant and an agreement was signed with him in June 2000. The consultant was directed to make fresh designs based on the present requirements. Accordingly, even the designs could not be submitted to Oman authorities as of October 2000.

As no developmental activities could be started by the MEA on the allotted plot even after expiry of sixteen years, the Government of Sultanate of Oman proposed in May 1998 to take it back in lieu of another plot which was not at prime location. Delay in taking up the project caused the Government to incur an avoidable expenditure of Rs 3.26 crore on rent paid for hiring of Chancery-cum-Embassy residence during January 1995 to March 2000 coupled with the danger of losing the prime location plot.

This long delay in construction its own building in Oman shows the influence exerted by influencial contractors and Indian businessmen on the Ministry of External Affairs. The Indian Ambassadors have been residing in a villa in the posh Qurum area and the monthly rent outgo for the embassy building is also unknown.

Embassy of India Doha

In 1979, Government of the State of Qatar allotted a plot of land measuring 5005 sq. meters in the Diplomatic Area in Doha on reciprocal basis for construction of Chancery-cum-Embassy residence and few essential staff quarters. M/s Rajinder Kumar and Associates were appointed as consultants in October 1984. The estimated cost of the project was assessed as Rs 4.33 crore in 1990-91. The consultant fee was 5 per cent of the estimated cost which worked out to Rs 21.67 lakh. Out of this Rs 7.58 lakh were paid in August, 1990. By 1990, the project was ready for construction but was interrupted due to Gulf war. But later on, Qatar authorities insisted for acquisition of plot for their Embassy in Delhi on reciprocal basis. This issue was settled on signing of revised lease agreement in September 1994 and the project was revived in 1995.

As per agreement, the construction of the buildings was to be completed within a period of two years from the date of signing of agreement. But no action was taken thereafter to get the work awarded except short listing of pre-qualified contractors for tender. Even the drawings of the project were not submitted to the local authorities for their approval as of July 1999. However, in September 1998 a three member property team visited Doha to finalise the contract but its findings were neither available nor produced to Audit.

The audit report indicated that while the construction project did not commence work, an expenditure of Rs 1.55 crore on rent for Chancery and Embassy residence during the period from October 1996 to March 2000 was incurred. The funny part is that the original project cost was only Rs 4.33 crore!