The office of the Principal Director of Audit (Central), Chandigarh, under the Indian Audit and Accounts Department, has pulled up the Municipal Corporation (MC), Chandigarh, for failing to act against a contractor who neither accepted a work order nor executed the project for installation and commissioning of a fire fighting system at the Community Centre in Sector 44.
According to the latest inspection report of the department, a copy of which is available with The Tribune, the work order for “providing, installing and commissioning of a fire fighting system in Community Centre, Sector 44, Chandigarh” was issued on August 5, 2024.
The project was awarded at a cost of Rs 13,98,932 and was to be completed within four months from the date of issuance of the work order.
As per Clause 17 of the tender notice, if the successful contractor fails to sign the formal contract agreement within 15 days of issuance of the acceptance letter, the performance guarantee is liable to be forfeited and the contract automatically nullified.
The audit report stated that during scrutiny of records related to the project, it was found that the contractor did not accept the work order and no agreement was executed.
Despite this, the department neither cancelled the work order nor initiated re-allotment or re-tendering of the project within a reasonable period. The performance guarantee was also not forfeited, the report noted.
The audit sought clarification on several points, including whether the work order was formally communicated to the contractor, proof of dispatch and receipt, reasons for non-acceptance of the work order, action taken against the contractor under contract conditions, reasons for not cancelling and re-allotting the work and the current status and expected completion date of the project.
In response, the division stated that the contractor did not collect the work order and that no action was taken by the concerned sub-division.
However, the audit termed the reply “not tenable”, stating that the division failed to clarify whether the work order was formally communicated to the contractor or provide the present status of the project.
The report further observed that the department neither acted against the contractor as per contract conditions nor re-allotted the work after cancelling the original work order. This, it said, reflected a lack of timely administrative action, leading to delays in execution of public works and potentially affecting public interest.
The audit added that the department’s final reply and details of action taken are still awaited.
