Tuesday, April 01, 2014

Exposed: Maharashtra govt's Rs 450-crore welfare scam

Mid-Day: Mumbai: Tuesday, April 01, 2014.
Government officials will stop at nothing to make money, it seems. This newspaper has unearthed a multi-crore scam, in which unscrupulous contractors and government officials connived to siphon off money meant for welfare schemes for the poor.
This resulted in substandard social goods reaching the poor and the needy of Maharashtra, and, in some cases, no goods reaching at all. All of these welfare schemes are under the women and child, tribal and social welfare departments.
At the centre of the scam worth over Rs 450 crore is the Central Stores Purchase Organisation (CSPO), a state-run subsidised kirana shop set up in 1992. The CSPO streamlines procurement of welfare goods for social schemes by both the Centre and the State, which are run by the Zilla Parishads (ZP) and local bodies.
Through manipulations and by bending rules, officials awarded contracts for the purchase of goods worth Rs 451.88 crore to second-rate contractors, who produced bogus documents obtained from fictitious foundries at Ahmednagar and Rajkot, and fake test reports from Mumbai laboratories to get contracts between 2010 and 2013.
Documents accessed by this paper under the Right to Information (RTI) Act shows that Rs 271.88 crore of the total contracts were fully routed through mysterious hawala operators, and payments for them casually released by the government to traders, who did not deliver goods to the needy on the ground. This money was later taken out of several bank accounts of the fictitious operators and handed back to the traders.
cont.......