Friday, February 20, 2009

CIDA Internal Audit finds irregularities


http://embassymag.ca/page/view/.2008.march.26.cida

A CIDA program that doled out almost $500 million over a 10-year period to thousands of Canadian companies for development projects has been slammed in an internal audit that found the vast majority of projects weren't actually implemented.

According to the internal evaluation conducted last year and quietly released on the aid agency's website in December, CIDA-INC disbursed $1.1 billion in support of Canadian private sector initiatives in developing countries from 1978 to 2005. A total of 8,138 proposals were approved and funded.

However, the evaluation team found that only 972 projects had actually been implemented, raising serious questions about what happened to the hundreds of millions of dollars that were disbursed.

The evaluation team looked specifically at 721 projects approved between 1997 and 2002, finding that only 112—about 15.5 per cent—had been implemented, while 188 had shown no signs of progress in three years and the remainder hadn't gotten off the ground.

No Call For Tied Aid

For decades, Canada and other donor countries sought to ensure maximum domestic benefit for their aid dollars by stipulating that companies or products from their own countries benefit through the contracts. This is called "tied aid" and, in recent years, there have been moves to untie aid to ensure instead maximum benefit for the recipient country.

Some more info on CIDA :

Call for overhaul of CIDA strikes chord: senator
The Liberal Government Boondoggles Go On and On

It is significant that some of Canada's largest and most lucrative companies receive grants from CIDA under its controversial Industrial Cooperation Program. Bombardier, Trans Canada Pipelines and SNC Lavalin, for example, have all received millions of dollars from CIDA between 1996 and 1999. Significantly, they are among companies which have given generous contributions to the Liberal party. (See Reality, November/December, 1997, "CIDA's Gender Seeking Opportunities Abroad," p. 13.)

According to MP, Keith Martin, the Reform Party's Foreign Affairs Critic, these examples of the financial incompetence of CIDA are only "the tip of a very large iceberg."

Wednesday, February 11, 2009

Why fund KSEB ? Hidden agenda of CIDA/EDC

Here is what Canada has to say about their KSEB engagements.
An Energy Infrastructure Services Project, in which Montreal-based SNC Lavalin will assist in improving energy systems planning and environmental management at the Electricity Board in the Indian state of Kerala, and possibly neighbouring states, so as to prepare the utility for privatization. The privatization of power generation, transmission and distribution activities of state electricity boards is a vital part of India's economic liberalization program. CIDA will contribute $13.8 million to the project over five years.
By CIDA supported initiatives
"These agreements open the door to Canadian firms to assist the Indian government in carrying out its economic reform program," said Mr. Boudria. They reflect the important role of the private sector in India's long-term economic development."
-- JOINT MINISTERIAL COMMITTEE AND AGREEMENTS WITH INDIA
Now we have seen how Canadian firms help us to help them.

CPI-M must apologize to people of India to have fallen into this trap. Show the courage to accept your mistake.

Remember 3 CPIM workers lost their lives in Andhra fighting against power sector reforms.

Now you can understand how **spelling mistake** appeared in the agreement, which made KSEB into a company.

Saturday, February 7, 2009

Letter of Com Balanandan

Janasakti magazine published a letter claimed to be written by Com Balanandan.


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Tuesday, February 3, 2009

High voltage Slander Campaign - SNC KSEB Contract

Here is much awaited SNC Lavalin - KSEB Contract.
- Donated by a well wisher


There is a ‘High voltage Slander Campaign’ going on with utter lies and half truths to defend a corrupt deal. Hence we have decided that the public should be allowed to make their own judgment. We publish the entire agreement – both consultancy agreement as well as the supply agreement. Please find some explanations which made us feel Pinarayi is guilty. If you find other arguments from these documents, please write back to us.


SNC Lavalin and KSEB entered into 3 separate contract for their projects
in Panniar, Sengulam and Pallivasal. Separate contracts were created so that
each contract will be below Rs 100 Crores. For contract above Rs 100 cores,
KSEB require CEA clearance.

In Feb 24, 1996 original contract was signed by UDF govt.


Scope of the work:

The Scope of work is clearly specified and it says that the scope of the project is just advisory in nature. Section 2 talks about “scope of Work’ and in section 2.1 “Provide the technical services for Mangement, Engineering, Procurement and Construction supervision so as to ensure timely completion of the project within the agreed timeframe which is 3 years from the Effective Date of Contract”.


Payment :

The payment options talks about ‘renumeration’ and is being billed in man hours for the actual manhours spend on this project.(Annexure G)

Section 7 ‘ Renumeration and Payment ‘ clearly speaks about a payment ceiling and section 7.1(b) says that unless a revision on the scope of the project is made "Payments under this contract will not exceed a ceiling of C$4205000".

From the above it is clear that the ‘original agreement signed by UDF was just for a consultancy service, to be billed against actual man hours spend on the project subject to ceiling of Rs 26 crores. SNC Lavalin was to inform us when our cumulative payments reach 80 percent of the ceiling. But there was a provision that on mutual consent either party could revise this agreement which would take off this ceiling on payment also.


Termination of the contract :
Clause 13 talks about the effective data of contract. 13.1.1. tells us that if govt does not take the loan from EDC contract will become invalid. LDF government clearly had an option of not going ahead with the contract signed by UDF.


Annex A of the document gives the Scope of Work.
Section A.3.4.2 says that Tender Documents will be compiled by SNC Lavalin.
Even after availing EDC loan, tendering within Canada was very much possible. The loan conditions of EDC forced us to procure goods from Canada. But it didn’t force us to give the supply contract to SNC Lavalin. UDF was planning to issue a tender within Canada. It was part of the consultancy agreement that SNC Lavalin should help us with the tendering process. But Pinarayi Vijayan just awarded this contract to the consultant middleman without tendering thereby allowing SNC Lavalin to avail benefits or in other words commission.


Annex B Cost Estimate of Canadian Financed Goods and Services

This was an indicative list made by SNC during UDF period. Document says that "A more refined budget for Canadian financed goods and installation will be developed by estimator of the project team." UDF did not fix any rates.

Annex C


Annex G

Here comes the new contract of Mr Pinaray Vijayan

Most interesting part of the new agreement

KSEB becoming a "Company" ???

Rest you can read. See how the rates got reduced.


LDF/Mr Pinaray brings a new clause to the contract
"in addition to the agreed upon consultancy services xx reduced scope of supply of Canadian sourced electromechanical equipment for the Project"

More Reference Documents

Watch this space for the SNC-KSEB MoU/Contract.

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