CAG finds flaws in VVIP jet buys

New Delhi: The much-touted acquisition of the Prime Minister’s Office in the air has received a rap on the knuckles from the comptroller and auditor general (CAG), the country’s premier watchdog agency. The deal, for acquisition of the three Boeing jets for VVIPs to fly around the world, was the one of the UPA government’s first big ticket deals soon after coming to power in 2005.
The CAG said that the deal was flawed as excessive payments had been made and competitors unfairly barred.
“The acquisition process for the VVIP aircraft deviated from laid down procedures and well recognised norms of propriety,” the CAG said in veiled reference that there could be undue tilt towards American aviation major Boeing for the contract.
CAG has said an “inordinate delay” of eight years had been taken to finalise the contract whereby government ended up paying $19.7 million more than the contract amount.
14/03/08 Financial Express

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Categories: Indian Aviation- In General Mar 2008