Seek legal advice on paying Russian firm: CAG to MoD after loss of millions

Business Standard.
August 07, 2018

The Comptroller and Auditor General (CAG) said the Defence Ministry should seek legal advice in a matter related to payment to a Russian missile firm that led to liquidated damage worth several millions of dollars. The Ministry of Defence (MoD) had signed a contract with a Russian firm for supply of missiles in November 2012 at a cost of $232,570,000. 
Payment up to 85 per cent -- $197,684,500 -- had to be made to the firm through an irrevocable revolving Letter of Credit (LC). This was to be opened for an initial amount of $59,305,350. In case of delay in the opening of LC, the ministry had to pay liquidated damages (LD) at the rate of 0.07 per cent to the firm for each day of delay.  
The ministry opened the LC after a delay of 81 days and calculated LD of $9,884,225 payable to the supplier based on the entire amount of LC payment, that is $197,684,500, and not on the initial amount of LC, which was $59,305,350, that would have resulted in LD payable as $2,956,267.5 only.  
"The MoD should obtain legal opinion on the amount to be reckoned for calculation of LD and raise a supplementary claim on the supplier, if need be, as the difference at the prevailing exchange rate ($1 = Rs 66.72) is Rs 461.6 million (Rs 46.16 crore)," the report said.  
The CAG also pointed to the delay in Dhanush guns.The Ordnance Factory Board (OFB), in 2011, undertook the development of electronically upgraded 155mm/45 Calibre Gun System "Dhanush" based on the Transfer of Technology (ToT) obtained in 1986 from the foreign firm while procuring 155 mm/39 calibre guns.
"The development undertaken by OFB was yet to clear the user trials completely, resulting in the continued deficiency of modern artillery gun in the Army," the CAG said. The CAG also said there was an "inordinate delay" in the indigenous development of Unmanned Aerial Vehicles (UAVs) by the DRDO. 
It added that despite incurring an expenditure of Rs 797.5 million (Rs 79.75 crore) in the procurement of four UAVs through Limited Series Production, the UAVs developed by the DRDO failed to meet the user's requirements.
"Further, in another case, delay in development of Medium Altitude Long Endurance UAV system adversely affected the aerial surveillance capability of the Indian Army," it added. 
Reference:

Comments

Post a Comment

Popular posts from this blog

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017 arrested his
Read more

J&K Cricket Board Scam: Chargesheet Filed Against Farooq Abdullah, 3 Others By CBI

OUTLOOK July 16, 2018 The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah and three others. The CBI on Monday filed a chargesheet against former Jammu and Kashmir chief minister Farooq Abdullah and three others in a special court in Srinagar in connection with alleged irregularities and misappropriation of funds in the Jammu and Kashmir Cricket Association. After the fall of the Peoples Democratic Party (PDP) and the BJP government, this is the biggest development that has taken place in the state. The National Conference has not reacted to the chargesheet so far. The agency has levelled charges of criminal conspiracy and criminal breach of trust under the Ranbir Penal Code against Abdullah, the then president of JKCA, Md Saleem Khan - the then general secretary, Ahsan Ahmad Mirza - the then treasuer and Bashir Ahmad Misgar, an executive in the J&K Bank. The BCCI gave Rs 112 crore t
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav
Read more