CAG Slams GMDA for Project Delays, Says Authority Unable to Handle Major Projects

CAG also pulled up GMDA for have very few technical staff and for its lack of capacity to handle major projects.

The Comptroller and Auditor General of India or CAG has pulled up the Guwahati Metropolitan Development Authority (GMDA), responsible for supplying water, street lights and other urban civic amenities like parks and building permissions for the residents of the city, for huge delays and non-completion of major projects, lack of coordination among top officials including the CEO and non-implementation of key decisions taken at the Authority’s meetings.

In the ‘Performance Audit on Functioning of GMDA’ tabled during the 5-day Assam Assembly session which concluded yesterday, the CAG said GMDA lacks commitment and has failed to complete major projects. Even if it did complete some projects these were done after huge delays and at a much higher cost.

CAG also pulled up GMDA for have very few technical staff and for its lack of capacity to handle major projects.

“The capacity of the GMDA was not adequate to handle major projects as it was manned with very few technical staff. “Barring few development work…, the GMDA had either failed to complete all major projects or it was completed after huge delays and incurring additional expenditure due to cost escalations,” the CAG said.

“The South Guwahati West Water Supply Project which was to be completed in 30 months (September 2011), remained incomplete even after 11 years,” the CAG said in the report.

Further pointing out the flaws of GMDA, the report said of the 1524.27 metre pipes to be laid by the contractor, only 1179.41 metre pipes were laid.

Flagging corruption in the GMDA, the CAG report said, “Rs 1.65 crore was irregularly paid as interest to the contractor for delayed payment of bills…”

“Due to lack of monitoring by the CEO, GMDA and lack of co-ordination between CEO, GMDA and PD, un-authorised expenditure of Rs 4.33 crore was done by MD, Guwahati Jal Board for staff salary, payments to vendors etc. violating the agreement clause”.

An amount of Rs 27.90 crores released as advances for different projects for the National Games Village Phase 1 account remained outstanding without any adjustment even after finalisation of accounts in 2014-15.

Due to lack of monitoring by the Project Management Consultant in respect of South Guwahati (West) Water supply project 13,776.40 meters of pipes not laid by the contractor remained undetected resulting in overpayment of Rs 6.98 crore. Instead of engaging the consultant selected after observing procurement formalities, another firm was irregularly engaged (November 2021) as a consultant by GMDA on nomination basis for managing South Guwahati Water Supply Project.

An amount of Rs 6.20 crore expended on construction of Central Library Archive Cum Auditorium in Amingaon remained idle for a period of over 4 years due to lackadaisical approach of GMDA and PWD (Building) Assam.

Expenditure of Rs 6.38 crore on Detailed Project Report for Guwahati Metro Rail Project was rendered unfruitful as it was rejected by Government of India for non compliance to the guidelines for setting up Metro Rail.

Based on the findings, CAG recommended:

• GMDA should focus on promoting and securing the development of GMA in accordance with master plan, so that the key problems confronting civic life in Guwahati.

• The government should provide adequate infrastructure to GMDA to enable to achieve the targets proposed in master plan.

• Rules for conduct of business of GMDA should be framed for its smooth functioning.

• The Advisory Council as envisaged in the GMDA Act may be constituted and annual action plan should be prepared for implementation of master plan with coordination with the concerned departments.

• GMDA should take immediate follow up actions to comply with the decisions taken in Authority meetings.

• The Authority should strictly follow the financial rules for managing revenue collection including maintenance of cash book.

• The annual budget of GMDA must be prepared regularly and submitted to the government for approval.

• The Assam Financial Rules must be scrupulously followed, and all outstanding advances should be recovered immediately.

• The accounts of GMDA should be finalised annually in time with the closure of the financial year and approved by the authority so that it may be audited and proposed corrective measures if any are taken on time.

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