Bid rigging in free uniform scheme to school students incurs excess expenditure of Rs 4 cr
"The audit observed that the tender process was rigged through cartelisation by the bidders. And, CHT did not take measures to prevent the cartelisation, "stated the CAG report.
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CHENNAI: Owing to the failure in monitoring the implementation and bidding of free supply of uniforms to all government school students, the State government incurred an avoidable excess expenditure of Rs 4.81 crore.
For the supply of free uniforms, the scheme is jointly implemented by the Commissioner of School Education (CSE), Director of Elementary Education (DEE) and Commissioner of Handlooms and Textiles (CHT).
The report stated that, based on the requirements of uniforms for 2021-22 academic year, CHT decided to procure 3,011 metric ton (MT) of various yarn varieties through tender and another 2,876 MT polyester cotton yarn without tender from co-operative spinning mills.
"The audit observed that the tender process was rigged through cartelisation by the bidders. And, CHT did not take measures to prevent the cartelisation, "stated the CAG report.
Further, the audit noticed that though the market price for the clothing material at the time was at Rs 438 per kg, due to bid rigging, CHT procured the yarn at a higher price of Rs 475 per kg.
"With respect to procurement of 1,300 MT of combed dyed cotton yarn alone, the State government incurred an avoidable excess expenditure of Rs 4.81 crore, "the report stated.