Bhopal (Madhya Pradesh): The Comptroller and Auditor General of India (CAG) has found irregularities in the functioning of Madhya Pradesh LaghuUdyog Nigam (MPLUN), reporting that work orders were awarded without calling for tender. The report was tabled in the state assembly on Thursday.
CAG’s audit revealed seven work orders given in violation of tender norms. In some cases, tenders were awarded at 32% premium over the basic price. Shockingly, one tender was given to a company blacklisted by the government.
Investigations showed that a furniture supplier previously blacklisted was indirectly involved through ownership of a second firm, which was awarded the tender. When questioned, MPLUN claimed the firms were different, a justification the CAG deemed unethical.
The report also highlighted financial mismanagement in MPLUN’s four emporiums. While stock stood at Rs 3.54 crore in 2021-22, purchases worth Rs 7.51 crore were made in 2021-22, exceeding actual requirement.
MPLUN’s two quality control laboratories in Jabalpur and Indore were also under scrutiny. The Jabalpur lab lost its National Board of Laboratories (NBL) accreditation in 2022, reducing its credibility to zero. Despite this, MPLUN made no effort to restore certification, forcing industrialists and businessmen to rely on certified private labs for product verification.