Ongoing Audit Uncovers Norm Violations in KFON Project, Raises Concerns Over Chinese Cables
The audit of the Kerala Fibre Optic Network (KFON) project has revealed potential security issues due to the breach of norms regarding the use of domestic cables. Despite the tender condition specifying the requirement for equipment from Indian manufacturers, the promoter KSITIL utilized Chinese-origin cables, disregarding objections from the Kerala State Electricity Board (KSEB).
Even the quality of cables supplied by Korean company LS Cable & System for the KFON project was tested in China, against the tender condition that mandated testing in India. The acceptance of test results from a lab in Shanghai has raised further questions.
The auditor has requested clarifications from KSITIL, and the audit has been ongoing for the past four months. The audit report will be prepared once a response is received.
The KSEB’s technical committee’s attempts at scrutiny were reportedly obstructed by KSITIL. During the audit, the KSEB expressed concerns about the Chinese origin of the cables and the associated risks. However, they had to yield to pressure from KSITIL, although they objected to paying the full bill to LS Cable, who supplied the cables, even after two years.
The tender conditions stipulate that a Factory Acceptance Test (FAT) must be conducted at the manufacturing plant. However, as the key component was manufactured in China, this requirement could not be fulfilled. The KSEB raised objections, stating that testing alone, without assessing the manufacturing process, would not ensure cable quality.
Additionally, the choice of the testing laboratory should have been made after verifying their expertise in conducting all required quality tests as specified in the tender. However, KSITIL accepted documents from the contractors, Bell Consortium, certifying the Chinese laboratory’s capabilities.
In defense, KSITIL argued that since LS Cable was registered in India and had a plant in the country, it could be considered an Indian manufacturer. This argument contradicts the tender condition that explicitly states the cable should be purchased from Indian manufacturers, not just based on the location of the manufacturing plant.
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