Transparency Issues and Financial Losses Cast Shadow on Ambitious Initiative
The state government’s audit department has raised significant concerns regarding Pune Municipal Corporation’s (PMC) ambitious 24×7 water supply project, according to a draft report spanning from 2018 to 2021.
Submitted on April 4 to PMC by the local fund audit office in Navi Mumbai, the report highlights various discrepancies and shortcomings in the execution of the project, including transparency issues, financial losses due to delays, contract violations, and unclear objectives.
PMC’s 24×7 water supply project aimed to address water leakages in the municipal distribution system and ensure a balanced water supply over the next 30 years, with an estimated cost of ₹2,818.46 crore.
Initiated in 2018 after appointing a consultant and devising a plan, the project faced financial scrutiny during the audit period. Concerns were raised over missing documentation regarding bond purchase rates and repayment terms, raising doubts about transparency.
The audit also revealed discrepancies in the financial plan’s accessibility and highlighted a significant amount of unaccounted funds from the approved budget for debt securities.
Regarding project execution, irregularities in the tender process for the Parvati Water Treatment Plant (WTP) were noted, including delays in issuing work orders after tender approval, violating contract terms.
Furthermore, the audit uncovered billing duplicity for debris removal, leading to double payments as the water supply project contractor undertook tasks assigned to the solid waste department contractor.
Additionally, the report highlighted a shortfall in the contractor’s performance guarantee, raising concerns about compliance with contract requirements.
Lastly, the audit criticized the extension of the project’s completion period without penalties, exceeding the initial contract duration.
As PMC addresses the issues highlighted in the audit report, stakeholders anticipate transparent and efficient measures to rectify the project’s shortcomings and ensure the successful implementation of the 24×7 water supply initiative.
