Irregularities in Tvm corporation; Rs 68 lakh swindled using ‘SMS project’, contract given to private agency by violating rules

THIRUVANANTHAPURAM: The Comptroller and Auditor General has found that Thiruvananthapuram Municipal Corporation has lost Rs 67.70 lakh by giving ‘SMS project’ contract to a private agency. ‘SMS project’ was implemented to improve the learning standards of school students.

According to the preliminary report submitted to the government, the contract was given to a private agency called ‘Employment and Development Centre (HREDC), by Human Resources which is located in the corporation compound, by violating the store purchase manual and government guidelines. This is followed after ‘Kerala Kaumudi’ report about cutting off subsidies to women enterprises by corporation.

This is a scheme that informs parents about the academic performance of students through SMS. It is provided to students from LKG to XII in government and aided schools under the corporation. As part of this, collection of students information, scanning of their photos and uploading them to the software, distribution of photo ID cards has been entrusted to the private agency. Rs 67.70 lakh was lost in the ID card printing contract. The contract was given to them at a higher rate than the general market. But all students were not given ID cards. The loss became evident when the rates were inquired from three printing agencies including the government agency. The amount was sanctioned from the general fund of the Corporation.

The scheme was implemented in the years 2018-19, 2019-20 and 2021-22. There was no project for 2020-21 due to Covid.

The SMS should be sent on the software developed by the Information Kerala Mission at a cost of Rs 8.67 lakh. This is also where students’ photos should be uploaded.

Amount quoted per card

• Agency with limited capacity Rs 56.
• Rs 26 for agency for more capacity.
• Government agency Rs 50 (excluding GST).
• Rs 60 calculated by CAG after adding GST.

Irregularities observed by CAG:

• HREDC is not an accredited agency of govt.
• The corporation and the agency did not enter into an agreement.
• The contract was given without following procedures.
• The performance audit department pointed out the loss but they did consider it.

Year – Card to be given – Given card

2018-19 - 50,279 - 39,960

2019-20 - 41,288 - 39,331

If govt increases rate

Year.......Card…...Amount paid....... if Rs 60………overpaid

2018-19…. 39,960.........50,01,580................23,97,600...................26,03,980

2019-20…...39,331.........56,15,455............... 23,59,860.................32,55,595

2021-22…....26,480.........24,99,713................15,88,800...................9,10,913

The total additional cost is Rs 67,70,488.