Row over payment for leather bags as ‘gifts’ to officials hits Aavin

According to official sources, a prime issue plaguing TCMPF pertains to State Dairy Minister KT Rajenthra Bhalaji asking staff to hand out “compliments” to bigwigs last Deepavali. This resulted in officials purchasing 800 leather bags at a total cost of Rs 35.70 lakh and distributing them to officials in the east, west, north and south zones in the city, they added.

What irked officials was that no purchase enquiry was initiated which would normally be done a week prior to Deepavali, sources said. Also, a standing committee of various dairy officials should open the received quotations, approve the lowest rate and then hold consultations with the lowest bidder to reduce costs further. None of these procedures were, however, followed, sources added.

Further, four quotations in the names of KS Rahul, Trish Agencies, Vibrant Accessories and Crea Leather Exporters were reportedly procured and based on them, orders were issued to 13 district milk unions to pay out money for 200 bags each. Sources said that excepting Crea Leather Exporters, the other three had no connection with the leather industry whatsoever. The four quotations were then photocopied and sent by special messengers to the milk unions, “requesting” them to issue payment, they added.

“While one union refused to pay, citing poor fund availability, the others demanded to see the bags they were to purchase. The total amount for the 12 unions exceeded Rs 1 crore when 18% GST was added,” sources said.

Meanwhile, the then Aavin MD, C Kamaraj, was shifted and when the district unions realised this, they reportedly refused payment. The Chennai office which was asked to foot the bill for the “purchased” bags for the region refused as the new MD refused to sign payment for an order about which he knew nothing, sources said.

Sources also said that the bags worth only Rs 900 apiece were being quoted at Rs 4463 per piece. Also, the incumbent was supported by aggrieved staff as he saved the federation Rs 40 lakh a month when he axed nearly 80 “temporary consultants” in the Chennai area, they added.