Govt rejects Congress's claim, says GeM most transparent platform

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SME Times News Bureau | 25 Apr, 2017
Refuting allegations of irregularities against the Governnment e-Marketplace (GeM) levelled by the Congress, the government on Monday said GeM is a transparent, digital public procurement portal and the opposition charges are based on forged letters.

On Friday, Congress spokesperson Randeep Surjewala on the basis of letters written by eight BJP members of parliament alleged "a massive scam" in the GeM portal due to "irregularities and malpractices". He said the rates on GeM for procurement are more than the rate contract, as a result of which the government bears a loss of crores of rupees.

"Department of Commerce strongly denies the baseless, motivated and malafide charges levelled by Randeep Surjewala against GeM," Commerce Minister Nirmala Sitharaman told reporters here.

Explaining that the prices quoted in the GeM are dynamic which favour the government, while the fixed rate contract (RC) applies for a period of 1-2 years, Sitharaman cited the recent acquisition of 54,000 smartphones for women aanganwadi workers in five states through GeM.

"The price at which these handsets were procured were the lowest in the market and resulted in a saving of Rs 7 crore," Sitharaman said.

"Member of Parliament Ajay Nishad has already denied in writing having written the said letter and says it is a forgery. Besides, theletters of Ajay Nishad and Lok Sabha MP Ashok M. Nete are exactly similar," the minister said.

Also, the letters written by the Lok Sabha members Harish Dwivedi, Arjun Lal Meena, Alok Sanjar, Rajesh Verma, Radheshyam Biswas and Kaushal Kishore, have all put in the similar request of extension of software, storage, networking, security items on DGS&D (Directorate General of Supplies and Disposal) Rate Contract, she said.

"Facts clearly indicate that there are vested interests operating behind this malicious campaign against GeM and in all likelihood, it appears to be the handiwork of certain interested groups who have been badly hit owing to discontinuation of RC," Sitharaman added.

Noting that the government has made a saving of over Rs 100 crore on the total procurement of around Rs 450 crore that has taken place so far through GeM, Sitharaman said: "Government as a policy is reducing the items on fixed rate conttr5act and bringing them on GeM."

"Already over 100 items have been put in the e-marketplace. In the process, the interest among sellers and vendors has increased in GeM."

She said that as and when the fixed contracts expire for items, these would be transferred to the GeM.

"Besides, GeM will go to all states, so that state government procurement can be done through it," she added.