CBI probe sought into Lavalin

The Hindu
September 24, 2005

A writ petition was filed on Friday before the Kerala High Court seeking a Central Bureau of Investigation (CBI) probe into the award of [a]contract for modernisation of [the] Pallivasal, Sengulam and Panniyar hydroelectric projects and extension work of Kuttiyadi Irrigation Project to the Canada-based company S.N.C. Lavalin.

The petition filed by T.P. Nandakumar, Chief Editor, Crime, also sought CBI probe into the irregularities in the setting up of the Brahmapuram Diesel Power Plant.

It was alleged that as many as Rs.75.28 crores had been lost to the State in the Brahmapuram deal.

The petitioner said that a Vigilance inquiry had been ordered into the irregularities in the award of contract for the purchase of equipment for the Lower Periyar Project in Idukki. However, this Vigilance case was not progressing in the right direction due to political interference.

The petitioner said that the Government was compelled to order a Vigilance inquiry into the award of the contract by the Kerala State Electricity Board for the three hydroelectric power projects.

The petitioner alleged that while the controversy over the SNC Lavalin issue was raging, a file kept by the KSEB relating to the discussion in Canada with the company had disappeared from the Board.

There was a serious deviation from the prescribed procedure in the award of the contract to SNC Lavalin.

Though the Vigilance had registered a case, no headway had been made in the investigation.

The petitioner said that attempts were being made by the Government and KSEB to cover up the whole issue.

The petitioner alleged that in fact, the Vigilance could not do anything on account of political pressures.

Categories: Canada, Export Credit, Odious Debts

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