Mani Shakar demands JPC probe into scrapping of MLDN tender to Alcatel

Our eFE Bureau

New Delhi, Aug 31: Member of Parliament Mani Shankar Aiyar has charged the Union minister of state for communication Tapan Sikdar with “impropriety leading perhaps to corruption.”

He was refering to the cancellation of the award of managed lease line data network (MLDN) tender to Alcatel by Mahanagar Telephone Nigam Limited (MTNL). The Congress member has demanded that the matter be investigated by a joint parliamentary committee.

In the eye of the storm is the MLDN tender, the bids for which were opened and evaluated in August, 2000. Alcatel Limited, which emerged as the lowest bidder (L1) was issued the letter of intent (LoI) in September.

According to Mr Aiyar, on October 4, 2000 “the private secretary to the minister - not the minister himself - who I assume is somebody who can take down some dictation or is at best some IAS babu.....summons the MTNL and orders them to appoint the Technical Engineering Centre (TEC) to re-investigate the whole matter.”

The TEC report, submitted on the 27th of October, and “it is clear from the TEC report that all is well,” claims Mr Aiyar. The ministry of communications’ legal advisors were also for Alcatel getting the order.

At this point, according to Mr Aiyar, the MOS intervened again and insisted that the additional solicitor-general’s (ASG) advice should be obtained. “ASG says that provided L-2 comes down to the L-1 level...you cannot give it to L-1 and give it instead to L-2’, adds Mr Aiyar.

He says that not only were the Central Vigilance Commission’s directives on “negotiations only with lowest bidder” flouted, but after the MTNL chief cleared the purchase order for Alcate since ITI couldn’t match its bid of Rs 63 crore, a senior MTNL official was summoned by the minister’s additional private secretary for a meeting attended by two representatives of ITI.

Mr Aiyar pointed out that the TEC had cleared both bidders on technical grounds and the high-powered MTNL committee had backed Alcatel for model 3645.

It may be mentioned here that the bid had been called for the company’s 3600 model. The committee came to the conclusion that “MTNL would stand to benefit” from the 3645 model.

The MTNL Board, in an emergency meeting held on the 19th March, 2001, decided to convert the LoI placed on Alcatel, into a purchase order which never materialised.