The Bruhat Bengaluru Mahanagara Palike (BBMP) is facing financial troubles due to its mismanagement of mechanical sweeping machines (MSMs) and failure to hold contractors accountable. The state audit and accounts department has discovered violations of tender rules and significant losses incurred by the civic body. As a result, the department has directed the government to recover dues amounting to Rs 3.6 crore from the contractors to mitigate the losses.
During the audit of BBMP’s accounts for 2019-20, it was revealed that officials in some zones had not only violated tender rules in the procurement of sweeping machines but also failed to impose liquidated damage charges on contractors for non-compliance with tender conditions and deadlines. One such case involved a New Delhi-based contractor who was contracted to supply 17 sweeping machines worth Rs 76 crore by May 31, 2019. However, the contractor failed to deliver the machines as per the work order.
The audit report disclosed that while the first batch of five machines was delivered on August 24, 2019, another five arrived almost a year later on June 12, 2020. The remaining seven machines were delivered on August 5, 2020, resulting in delays ranging from 12 to 61 weeks. According to the rules, the BBMP officials should have imposed a penalty of Rs 3.1 crore as liquidated damage charges on the contractor. However, they only levied approximately Rs 50 lakh, leading to losses of Rs 2.6 crore. Additionally, officials paid Rs 5 lakh extra to contractors for registration, causing a loss of Rs 2 lakh.
In another case involving the procurement of eight mechanical sweeping machines, BBMP officials made an excess payment of Rs 2 lakh to contractors for registration. Furthermore, they failed to impose any liquidated damage charges on the contractors for non-compliance with terms and conditions. The officials were unable to provide details about the condition of these machines or their usage schedule, resulting in losses of Rs 24 lakh.
Similar lapses were observed in the procurement of 200 bins and eight trucks fitted with cranes and bins with emptying mechanisms worth Rs 55.3 crore. Delays in the delivery of vehicles and services, except for the first consignment, led to a loss of Rs 73 lakh.
The negligence and mismanagement by BBMP officials have caused significant financial losses and deficiencies in the procurement processes. The state audit department’s report highlights the need for stricter adherence to tender rules, timely completion of contracts, and proper accountability of contractors to avoid such financial repercussions.
