Differential pricing, overpricing caused CWG losses: CAG
Things as simple as charging different prices for the same item in different clusters of delivery caused a loss of nearly Rs11.06 crore during the Commonwealth Games, the Comptroller and Auditor General of India (CAG) said in a report on Friday.
Calling it a bizarre case, the CAG observed that one of the vendors, Pico-Deepali offered different rates for the same item.
Citing some examples, it showed the price of first-aid kit varying between Rs4,741 to Rs3,934; tissue paper varying between Rs1,580 to Rs1,314; while a water dispenser's price varied between Rs11,852, and Rs9,855.
A six-by-six solid garbage container's minimum price was Rs91,976 and the maximum was Rs1,16,446. Price of a treadmill varied from Rs5,35,654 to Rs4,59,879, and same was the case with other physical fitness equipment.
Moreover, the prices paid for several items were almost double their price declared at the customs at the time of import.
A pigeon-hole cupboard declared to be worth Rs5,200 at the customs, was given at a rate of Rs14,440; a bookcase declared to be worth Rs2,840 was given at Rs7,655; a stackable chair of Rs720 was declared worth Rs1,542.
Apart from this, the CAG said it has found instances where the organising committee had paid the sub-contractors a price in excess of ten times more than what the sub-contractors paid.
"We also found some instances of sub-contracting (public display boards, UPS, and gensets) by the vendors, which revealed huge differences of 152 per cent to 1,140 per cent between the rates charged to the OC and the rates charged by the sub-contractors," the report said.
The report also said that such sub-contracting was carried out irregularly by the vendors without OC's approval, as contractually required.
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