August 5, 2011 / PTI, New Delhi / DC.
Friday, August 5, 2011
CWG SCAM: CAG nails ECIL for inflating cost of bomb detectors!
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It was not private companies alone that tried to make money through lucrative Commonwealth Games contracts but a prestigious PSU also joined the race in pocketing huge amounts.
The Comptroller and Auditor General (CAG) today pointed fingers at the Electronic Corporation of India (ECIL) for making an 'exorbitant' profit of Rs 126 crore by 'highly inflating' costs for a security system.
The CAG rapped ECIL for inflating the cost for providing Integrated Security System for the Games, recommending that final payments be made to the PSU only after a detailed examination of actual costs.
In a stinging observation, the CAG said the 'inflated estimates' prepared by the ECIL and approved at Rs 345.70 crore 'did not reflect' the true market rates and allowed it to make 'exorbitant profits of at least Rs 126.28 crore'.
"Such conduct by a PSU appointed on nomination basis by the government amounts to breach of trust.
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