Kohima, April 03:The Comptroller and Auditor General of India (CAG) has indicated excess expenditure of the Nagaland Public Health Engineering Department (PHED) during the financial year of 2009-2010.
The report was submitted in the Nagaland Legislative Assembly on March 28 last.
The CAG report stated that the Chief Engineer of PHED allowed higher rate for Galvanised Mild Steel Pipes (GMS) pipes to a supplier resulting in an excess expenditure of Rs 42.87 lakh.
The chief Engineer invited tenders (January 2007) for supply of GMS pipes of various sizes from manufactures and registered dealers.
Among eight bidders, who participated in the bid, M/S Indus Tubes, New Delhi quoted the lowest rate of Rs 589 per meter for 40mm GMS pipe and the department approved (February 2007) the rate quoted by the above firm and decided to procure from local authorised suppliers at the approved rate.
Subsequently, the department revised (September 2008) the rates of all sizes of pipes due to an increase in the steel prices and fixed the rate of 40mm pipes at Rs 665.75 per meter.
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