Wednesday, August 3, 2011

Sheila Dikshit contests allegations against her in CWG report



New Delhi:  The Delhi government today said it is not true that Chief Minister Sheila Dikshit intervened to allow an ineligible company serve as a supplier of street lights during the Commonwealth Games last year.

"We have not committed any irregularities while holding the Commonwealth Games," Ms Dikshit told PTI. "We were entrusted with certain responsibilities for holding of the CWG and we delivered that."

A report by the government's auditor (CAG) says a company named Spaceage was  rejected by a technical committee but was hired later to provide lights after the Chief Minister intervened. This report will be presented in parliament on Friday. 

The Delhi government's cabinet secretary today pointed out that Spaceage had gone to the Delhi High court to challenge its disqualification.  Two judges ruled in its favour in July 2008, he said.

Sandeep Dikshit, the Chief Minister's son and an MP from Delhi, added, "There is no role of the Chief Minister...the court said reinstall this company."

The report of the Comptroller and Auditor General also states that companies like Spaceage imported lights at low costs - about Rs. 5,000 each - and sold them to the government for Rs. 25,000 per light, earning super-profits at the government's expense. The auditor says Mrs Dikshit's sanction to use imported lights instead of locally-made ones cost the government Rs. 31 crore in losses.

The Cabinet Secretary, PK Tripathi, says that the decision to use imported lighting was based on the advice of a consultant from Kolkata who said that the Games needed lights of international standard. He also said that Spaceage may have tried to avoid customs duty by deliberately under-listing the value of each light that it was importing. He said that at no point was the government aware that Spaceage may have paid an amount as low as Rs. 5000 per light; he suggested that the Customs Department further investigate the company for possibly misstating the value of the lights it was bringing into the country.

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