PORVORIM: Fatorda MLA Vijai Sardesai on Wednesday alleged a Rs 182 crore scam involving the Department of Information Technology (IT) related to the extension of a contract for providing broadband connectivity across Goa. Sardesai called for a judicial probe into what he described as a “multicrore scam”, accusing the government of extending the contract four times in violation of financial and technical norms.
During the discussion on a starred question in the Legislative Assembly, Sardesai pointed out that the contract with United Telecom Limited was initially meant to be completed in 2019. However, a 2015 report by the Comptroller and Auditor General of India (CAG) had already highlighted issues with poor and unstable last-mile connectivity. Further concerns were raised in 2022 when the Finance Department noted significant technical deviations and exorbitant fees associated with the project. PricewaterhouseCoopers (PwC) had also recommended replacing the service provider, but instead, the government extended the contract in August 2023 until July 2027, according to Sardesai.
Sardesai questioned the rationale behind the Rs 182 crore extension granted to the project, especially given the Finance Department’s warning about technical non-compliance. He alleged that the decision to extend the contract was made by overruling the Finance Department’s recommendation against it.
In response, IT Minister Rohan Khaunte defended the decision to extend the contract with United Telecom Limited. He explained that the extension was necessary because all of the government’s e-governance projects rely on the internet and intranet services provided through the Goa Broadband Network (GBBN). Khaunte stated that the next three years of the extension would be used to develop a network connecting Goa using Central government funds.
Khaunte also informed the House that issues raised by the CAG had been addressed and that Rs 131.21 crore had been paid to United Telecom Ltd and other contractors from April 1, 2020, to date. Additionally, he mentioned that the State government received Rs 12 crore as its share of GWAVE services revenue from United Telecom Ltd.
The Minister highlighted that the GBBN broadband initiative had connected 1,906 locations across Goa, including government offices and village panchayats. He emphasised the cost efficiency of the project, noting that while the government spends Rs 22.80 crore per year on the initiative, the revenue generated through GWAVE stands at Rs 12 crore. He also noted that aligning the State’s requirements with the Central government’s Bharat Net 3.0 scheme could save Goa Rs 784 crore in infrastructure and operational costs.