BSNL Gave Undue Favour To Vendors : CAG

National auditor CAG came down heavily on state run operator BSNL for its poor performance and malpractices and said it had given undue favour to some vendors.

“In procurement, there were instances of non- ensuring of supplies in a timely manner and extending undue favour to vendors,” CAG said in its report tabled in the Parliament in the ongoing session.

The auditor referred to BSNL’s performance for the year ended 30 March 2016.

The company has been doing losses for around a decade now and at present sitting on a debt of over a billion dollars.

CAG also said that despite broadband being a prominent segment for the state run firm, the company has not focused on improvement the services.

The CAG said issues relating to maintenance of the broadband equipment such as delay in entering into Annual Maintenance Contract (AMC), non-levy of penalty on defaulting vendors, etc. hampering quality of broadband services were also noticed.

The auditor also found asymmetry in company’s expansion policies. It said BSNL has shown unnecessary haste in capacity building despite half of its resources remained unutilised.

“The Company, despite having 50 per cent of its wireline broadband capacity lying unutilized, went into unwarranted augmentation of capacity,” the CAG said in its report tabled on 21 July.

The Comptroller and Auditor General (CAG) also raised questions on the telco’s quality of service policies.

“As regard s compliance with Telecom Regulatory Authority of India (TRAI) parameters on Quality of Services (QoS), there was scope for further improvement on part of the Company,” it said.

The CAG said inspite of the fact that broadband being a prominent segment, BSNL did not specifically focus on promotion and marketing of broadband services.

“Despite identifying the reasons for heavy disconnections through a survey, the company failed to address the causes and prevent further disconnections,” said the CAG. “There were indications to show that the tariff planning was not aligned to consumer behaviour and extant guidelines of the Company which may lead not only to non-retention of existing consumers but also non-expansion of existing consumer base. The social objective of providing broadband connections in rural areas and colleges under various Government schemes were also not met.”

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