OFFICE OF THE ACCOUNTANT GENERAL(AUDIT),

ASSAM ::MAIDAMGAON BELTOLA:. GUWAHATI-29

4Eco-1.2/IR/37-2/2016-17/378 dt*: 30/11/2016

The Chief Engineer (ARIASP & RIDF),Cum Project Director, (ASRP),

World Bank Aided Project,Fatasil, Ambari, Guwahati-781025

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I am to forward herewith the Inspection Report on the accounts the Chief Engineer (ARIASP

& RIDF) curn Project Director, Assam State Road Project (ASRP), Guwahati, Assam, for the

period from 01-04-15 to 30-03-16. It is requested that the first reply to the Inspection Report should be

sent to this office with comments of the higher authority, within I (one) month of the date of receipt of

the same.

#.Eco-1.2/IR/37-2/2016-17/379-380 fkaI 30/11/2016

fa rm O W afafte Ot: l FC 2016he Commissioner Special Secretary. PWD (Roads). Department, Government of Assan.

Assam Sachivalaya. Dispur. Guwahati-781006.

2. The Secretary to the Government of Assam, PWRD, Dispur. Guwahati-781006 for

information and necessary action.

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Ins pwtionl Report on the accounts of the Chief Engineer (ARIASP & RID1F) cum Project Directoi.ASRIP, Vor ld BaI nk Aided Projcct, Fatasil, ALmlixri, Guwahi:ti-25 fur th e year 2015-16

PART-1

A. Introductory:

The accounts of the Chief Engineer (ARIASP & RIDF) cum Project Director, Assam State Road

ProJect (ASRP), Guwahati, Assam for the World Bank Assisted Department for International

Development (DFID) for scaling up Assam PWD Computerization Project (APCP) Grant No.TF-01 146

for the year 2015-16 were test audited by an audit party from the office of the Accountant General

(Audit), Assam, Guwahati-29 during the period from 01.11.2016 to 04.11.2016

1. Incumbenci:

The following officers held the charge of the Chief Engineer (AR]ASP & RIDF) cum Project

Director, ASRP, Guwahati, Assam as well as Drawing and Disbursing Officer (DDO) during the period

covered by audit:-

SI No. Name of Chief Engineer Designation PeriodFrom To

I Shri.Ranjeet Kr. Das CE/PD 01.04.2015 29.02.20162 Shri Rajesh Kemprai --do-- 01.03.2016 31.03.2016

C. Fund received and expenditure

(T in lakh)Year Opening Fund Other Total Fund utilized Closing

Head balance received receipts fund From As advance. Total balanceof incl. available APCP from ASRPaccount Bank fund fund

Interest2015-16 27,30,745 Nil 1,31,386 28,62,131 17,47,503 1,15,24,778 1,32,72,281 11,14,628

5054

D. Disclaimer: The Inspection Report has been prepared on the basis of the information furnished

and records made available by the Chief Engineer (ARIASP & RIDF) cum Project Director, Assam

State Road Project (ASRP), Guwahati, Assam. The Office of the Accountant General (Audit), Assam

disclaims any responsibilty for any misinformation and/or non information on the part of the auditee.

Part-I-A

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Para-l "Providing last mile connectivity to PWRD offices, local area networking within offices"-unt uitful

expenditure (T13.52 lakh).

Under the project "Scaling up Assam PWD Computerisation Project (APCP) under Department for

International Development (DFID) Trust Funds administered by the World Bank", Providing last mile

connectivity to PWRD offices, Local area networking within offices being a component tinder data entry services

and hardware and network augmentation .was administratively approved for an estimated amount of fl.30 crore.

A computerised information system was being developed under the APCP with an e-portal for providing the

IT-enabled processes of the department to be accessed through the internet in order to form a central repository of

nformation. In order to provide last mile network connectivity to PWRD field offices from Assam State W,ide Area

\etwei tASH A\ a s:ract <\on-consulting serices) was signed between the PWRD. Assam and Assam

Electronics Development Corporation Ltd.(AMTRON)-an Assam Govt. undertaking under Contract

No.CE/APCP/104/2013/10 dated October 01,2013 at a contract price of 'l,29,96,122.00, effective upto

31 December 2014.

It was evident from the department's communications made with the service provider in March 14, 2014

that it was preparing to deploy its e-portal application by March 2014,where as , the works under the contract was

running behind the schedule and the latter was requested to complete the same by March 31,2014 The finn vas

repeatedly reminded by the client deptt.(June, August, September and, November 2014) to expedite th'e works ,

formally commission and hand over the connected sites to the department.

However, owing to very slow progress of works, the period of contract was extended (23.12.2014) for one

year, i.e. up to 31 December 2015.1n the mean time, the firm was paid an amount of l3,51,500.00 aganst their bill

dated 31.03.2015 for the supply and installation of 106 Optical Media Converters, 8 Port L2 switches and Wi-Fi

access point at 53 points vide Vr. No. I dated 30.05.2015 and Vr. No. 147 dtd. 28.07.2015.

Records revealed that against the 56 offices to be connected, altogether 50 (fifty) sites -were commissioned

as on 31.12.2015 with six sites remained un-commissioned. The last site was commissioned at Rangia R,R,Division

on 03.08.2015. Even though connectivity was tested in the commissioned locations, the service (availability of

internet connectivity) was not available most of the time, either due to faulty equipment or due to fibre cIts and

other network related problems. Although AMTRON's ASWAN team was requested for immediate restoration of

"DOWN" sites, based on report generated by the network team, nominal initiative was taken to resibre the sites.

Resolution/restoration time varied from minimum one(I) month to maximum eight (8) months in -somb locations,

which defied the agreed SLA terms and conditions as per contract. In some cases, even the equipments (Wi-Fi

Rouster, Ethernet sw itch. Medi. converter) supplied by the firm were not replaced, when they becamefailty.

It was mutuall agreed during a meetin held in :he month of September 2015 with the firrni to reviewv the

per:ormance of the contact fcr a period of one month ft-r only 25 locations from 2109.2015. [Hwevei itc rcsult

\\as found to be sai ith very little im prvemien as out of 25 locations an average of 14 numbers of sites was

1-OLnd "[:P* u1*.

The status of AS WAN last ile conncivit till 25.01.2016 on l iac \ as a LmIdef

Total commissioned sites =50

Total non-commissioned sites =06

Total sites "UP" =09

Total sites "DOWN" 1

As on 25 January 2016 all the nine "UP" site became "DOWN" resulting all the 50 sites as "DO\WN"

Further, number of calls for non-working of links had been reported to be pouring in from various offices on daily

basis.

Ultimately no further extension of the contract period beyond 31.122015 was granted by the department,

as r ear of :te contact i2 :.2016L with the request to the firm to attend the office of the employer

xh all re evant J4cuments for final settlement of all dues and paables under the contract. However. no Follow-up

action was taken by the firm.

It was, thus, observed that although the execution of 3 out of 5 components of work as agreed upon was

materialized at an expenditure of l3.52 lakh. However, owing to non-execution of 2 important components viz (I)

leasing of fibre at 56 locations for providing connectivity from the last point of presence (POP) of ASWAN for one

year including Annual maintenance costing Z70.56 Iakh and (2) Commissioning of last mile POP at 56 PWRD

office locations costing Z36.40 lakh, the intlnded target for providing Network connectivity to PWRD field offices

from SWAN remained unachieved ea4d with an unfruitful expenditure to the tune of Z13.52 lakh.

Para-2 Diversion of Loan fund (No.8136-IND-2015-16) towards payment of grants under

PWD Computerization Project (APCP)- Rs.115.25 L

The Government of Assam received a sanction of USD 1,750,000 as per agreement dated April

2, 2012 between Govt. of India and International Bank for Reconstruction and Development (IBRD)

under Department for International Development (DFID) grant for scaling up the Assam PWRD

Computerization Project (TFOI 1446-IN). This Project was effective from 27 April 2012 and closed on

31 March 2015 with grace period for disbursement till 31 July 2015.

Scrutiny of Annual accounts/SOE (2015-16) submitted by the Department revealed that an

amount of 71.32,7228 1.00 was disbursed to contractors and consultants for supply of Oracle Software

update and support. payment for professional services/Management consultant etc during the grace

period i.e. till Ju 2015 as detailed belo\:

SI Name of work/Scheme Nnime of Amount Vr. No. & ReniarksNo contr etor paid(In dalte1 Programme Management A( cnture 13, 8.0 1 dated 7.5.15 S ACCounts

Services for Scaling up APCP Services Pvt. No.10566991616Ltd for Assarn

2 Connectivity to AS WAN Assam 3,60,000 1 dt.30.05.15 PWRDElectronics ComputerizationDevelopment Project for theCor. Ltd year FY 2015-16

Total 17,47,503

3 Supply of Oracle Software CMC Limited, 67,35,491 142 dt.28.07.15 A/C. No. Unionupdate and support Guwahati Bank

4 Professional PWC- 26,00,838 138 dt.28.07.15 551802010005117services/Management Development of (Accounts forconsultant e-portal for Assam State

PV. RD ASSAM Road ProjectProfesioz! PWC 13,88,449 140 dt.28.07.15 Loan No.8136-sereces Management IND -20 15-16consultant

6 Supply and Installation of AEDC Ltd 8,00,000 147 dt.28.07.15media converters

Total 1,15,24,778

Grand total 1,32,72,281

During scrutiny of cash book and bank statement maintained for the Assam PWRD

Computerization Project, it was seen that a total amount of Z27,74,222.00 was brought forward as

opening balance in April 2015 (2015-16), which included accrued bank interest amou ting,,to

Z9,75,352.46. Out of Z.27,74,222.00 an amount of Zl7,47,503.00 was spent for management services as

indicated at SI.No.] and 2 of the table. Further, on closure of accounts deadline of the Project .e. July

31, 2015, it was informed by the Controller of Aid, Accounts and Audit, Department. of Economics

Affairs, Ministry of Finance, Government of India, New Delhi (through E-mail dated 09.07.2015) that

there was an outstanding balance of USD 209,349.22 (approx. ?1,15,14,207.10), yet to be-received

against this grant as on date, which was required to be adjusted before 27.07.2015 and the final claim to

be submitted on or before 27.07.2015; otherwise same would have to be refunded to World -Bank. Since

there was no budget provision under APCP for the financial year 2015-16, the outstanding receivable

amount of Z 1,15.24.778.00 (USD 2059,349.22) was incurred out of Assam State Road Projec Loan

No.8136-IND -2015-16 during the month of July 2015 and re-imbursement claims suibmitted'by the

Project Director, APCP accordingsi. In view of diversion of ASRP loan fund towards payment of APCP

grants in the month of July 2015. the department sustaincd a loss of bank interest am1ounting. to

0.08 lakh (7% of Z1 1524778.00 for 10 months). Further it ma be mentioned that in aegard to expendilure of

152 8no rmnal approval frm Goverinment of A ssam s obMWaine.

Comments are invited froin the Chief Engineer, PWD (ARIASP & RIDF), Assam & Project

Director, World Bank Aided Projects, PWRD, Assam in this coitext.

PART-III

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r. Audi1t r Ec-1.2 Sr. Deputy Accountant General/ES

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