AIGETOA demands investigation by External Agency CVC about alleged Financial Irregularities at BSNL IDC Mumbai resulting in huge financial loss to BSNL

AIGETOA writes to the CMD BSNL demanding investigation by External Agency, Central Vigilance Commission (CVC), about the alleged irregularities in the BSNL IDC, Mumbai causing severe financial loss to BSNL Exchequer. It is suspected that the irregularities mat not be restricted to only IDC Mumbai but spread across all three IDCs of BSNL. It is important to note that M/S NxtGen is maintaining all three IDCs of BSNL at Mumbai, Ahmadabad and Faridabad and alleged that the company directly hosted the customers on the IDC without informing BSNL causing breach of signed agreement and it is believe that BSNL may have been subjected to the financial loss in the tune of Crore of rupees on account of this. So, AIGETOA demands CMD BSNL for urgent attention and suitable direction on the followings:

Investigation by External Agency: In the prima-facie and information, there is a strong indication of irregularities being widespread across all the BSNL IDCs located at Mumbai, Ahmadabad and Faridabad, which may have caused financial loss to BSNL in the tune of Crores of Rupees. Considering the gravity of matter related with the huge financial loss and involvement of multiple locations and external company M/S NXTGEN maintaining the IDCs, the matter needs to be investigated by Central Government Agency to ensure appropriate action. Accordingly, the association demands immediate handing over the matter to CVC for detailed and fair investigation of irregularities, conspiracies, involvement of BSNL officials (if any) and precise estimation of financial loss subjected to BSNL in IDC case of all the three locations.

Holding of all payments to the IDC Partner: As the loss subjected to BSNL has not been precisely calculated, BSNL should immediately freeze all the due payments of M/S NXTGEN (available with BSNL of its 80% revenue share, retention money etc) as it will be difficult to recover the loss once the contract period with M/S NxtGen is over (which is August-2022) or the matter becomes to sub-judicial after expiry of the term.

Auditing by External Agency of Repute: It has come to our information that after the irregularities at IDC Mumbai was exposed, an internal audit committee was constituted by the Maharashtra Circle, which is not in line with the agreement. As per EoI / MoU (Section-8 of Bid Document), BSNL should “immediately appoint External Independent Monitor to review independently and objectively, whether and to what extent the parties comply with the obligations under the agreement”. It may be ensured that the Monitors thus appointed are Auditors / Investigators of good repute, with experience in handling such matters. Accordingly, the association demands immediate appointment of External Monitor, who is of good repute and with expertise in handling such matters, for detailed and thorough auditing to the extent of the irregularities and precise estimation of the financial loss subjected to BSNL, considering all aspects and inclusion of all three BSNL IDCs in its ambit.

Operation and Maintenance IDC Centers by BSNL: The association is of the opinion that BSNL officers should take over the charge of all three IDC Centers and control of the activities in the BSNL IDCs, till the completion of the investigation process and conclusion of the matter. M/S NXTGEN officials can be kept in the supporting role, under strict supervision of BSNL officers, to check any further damage to the BSNL interest as well as smooth transition of the operation and maintenance of the BSNL IDCs to its own expertise.

Click here for the letter by AIGETOA