CHENNAI: Top port officials under CBI scanner

By G Saravanan

Published in The New Indian Express, Chennai on September 13, 2011:

Source:http://expressbuzz.com/cities/chennai/top-port-officials-under-cbi-scanner/313407.html

CHENNAI: Chennai Port Trust is back in news for wrong reasons. Now, the CBI has initiated an investigation into the alleged embezzlement of funds by top port officials during installation of a conveyor belt system for transporting coal at a cost of Rs 39 crore about two years ago.

According to sources, the probe agency started its investigation a few weeks ago after they smelled a scam while setting up the facility aimed at reducing pollution impact due to handling of the dusty cargo.

It is learnt that probe began after a complaint alleged that the private player given contract for installation had put up only 250 metres of belt against the mandated length of 275 metres.

The installation of the conveyor belt system and its commissioning in November 2009 has remained a mystery as the Port Trust management, which used to invite media for all its functions, did not invite anyone then and just sent a picture of the inauguration by the then Chairman of the Port Trust Capt Subhash Kumar in the presence of then Chief Mechanical Engineer K P Ramanathan.

While the first instalment of payment (25 %) to the contractor was released as per the agreement clause, the second instalment was made in full secrecy.

Contrary to a clause on payments in the contract, Ramanathan, during former Chairman K Suresh's tenure had sent a note to the ChPT's finance department to "release 50 per cent of the remaining amount in the interest of the project."

Though the contract clearly defined that the second installment had to be paid only after the full installation and commissioning of the belt, then CME, flouting all rules, sent the note asking to release the sum even though the facility was not fully installed.

Though the department turned down his plea at the first instance, the payment was indeed released within a day after intervention of top officials of the Port Trust, sources in the port told Express.

The Port Trust came under CBI scanner way back in 199899, when the agency started probing misappropriation in tender allotment by three top officials for the first time.

Besides, the CBI is also probing different cases against the former Chairman K Suresh (now Principal Secretary for Public Undertaking Mining Corporation in Madhya Pradesh) and two other top officials, G J Rao (then deputy chairman and now chairman of Paradip Port Trust) and M K Sinha, Deputy Conservator of Chennai Port Trust.