Power utility to probe alleged kickbacks from US firm

Shankar had written about Mario Covino of Control Companies allegedly pleading guilty to making illegal payments of $1 million to employees of the state-owned entities,including the Maharashtra State Electricity Board (MSEB). Sources said the government had also been directed by the Centre to probe the charges.

Soon after the allegations came to light,an inquiry committee was set up under the chairmanship of Gulabsingh Girase,director (finance),MahaGenco,to probe the charges. Sources said the allegations referred to a Rs 6.70-crore contract placed in 2000 to procure valves for thermal power plants.

A preliminary inquiry had recommended a probe by a technically-qualified person into whether the valves purchased were superior,whether the decision was technically sound,if it was necessary to replace the conventional valves,if any cheaper and better alternatives were available and whether any higher cost incurred was justified.

The MahaGenco set up a one-man inquiry committee of Anil Palamwar,former director (operations) of the Maharashtra State Electricity Distribution Company Ltd (MahaVitaran),this month to probe these technical aspects. The report is expected to be submitted by the month-end.

“We are conducting an inquiry. The letter (from the Centre) has come,and we are inquiring into it,” said Chief Secretary Johny Joseph. “We (state government) will also conduct an inquiry.”

He said the government had no other details of the charges. Subrat Ratho,Secretary (Energy),has also been asked to conduct an inquiry into the matter.