PANAJI
In a critical observation, the Comptroller and Auditor General (CAG) has flagged irregularities in the Goa Industrial Development Corporation’s (GIDC) continued engagement of a private agency -- M/s INET Computer Services -- for the supply of contractual workers, despite the agency quoting the highest salary per employee and not being the lowest (L1) bidder. Over Rs 7.80 crore has been paid to INET in the past four years for the payment of 63 employees, a number that was gradually increased to 91.
In its communication to the GIDC, CAG has sought to know whether GIDC will now issue a fresh tender, as INET -- initially appointed for two years from June 2021 -- has reached the end of its term, with both extensions having expired last month in June.
“Considering that the number of employees had gradually increased from 63 to 91 in four years, it was in the financial interest of GIDC to retender the contract upon completion of original tenure of the contract to enable competitive bidding and efficient price discovery. The two consecutive extensions were avoidable,” the CAG noted.
The Auditor said that after completion of two years an extension of one year was granted on June 15, 2023 and a subsequent further extension one year was allowed from June 2014 to June 15, 2025.
CAG observed that following a tender notice issued by GIDC to hire 63 employees on contract in April 2021, two bidders -- M/s Shudha Facility Management Services (SFMS) and INET -- participated in the tender and both qualified based on their technical bids.
Upon opening of financial bids, it was found that INET had correctly quoted service charges alone while SFMS quoted services charges plus salary in consolidated form. GIDC, thereafter sought clarification from both the parties over variation in prices.
“In response, SFMS clarified by separating service charges from salary component as per which SFMS was L1 bidder by quoting average service charge of Rs 1010 per employee as compared to INET with average service charge of Rs 2648 per employee,” CAG observed.
“However, GIDC did not consider the clarification and revised bid of SFMS. INET was asked to revise the rate and upon reduction by INET it was Rs 1998 per employee and the work order was issued to INET based on the revised rates,” CAG added.
In the first year, 2021-22, GIDC had paid a sum of Rs 1,13,94,199 to INET towards supply of 63 employees, while Rs 2,34,84,027 was paid as service charges for 76 employees in 2022-23.
In 2023-24, the employees were increased to 78, who were paid Rs 3,10,45,462 while Rs 1,21,26,262 was paid to 91 employees in 2024-25, up to June 2024.
