CAG says Ernst & Young's appointment for UMPP consultancy job was faulty

MUMBAI: The Comptroller and Auditor General's report on ultra mega power projects has said that the appointment of Ernst & Young as the consultant to the bid process for the mega projects was faulty.

The government's auditor said that global consultant Ernst & Young was given the mandate even though the lowest bid came from ICRA. E&Y declined to comment on CAG's observation.

CAG said that the bid documents were altered several times and were not approved by the department of legal affairs.

The report also said that E&Y was awarded the consultancy work for the Tilaiya Ultra Mega Power Project without inviting bids. It also notes that later, Power Finance Corporation, the nodal agency for the UMPPs, debarred them for three years for their lapses in bid evaluation.

Responding to ET's query on the ban by PFC, E&Y said in a statement, "There is no subsisting order of debarment against any of the Ernst & Young Indian member firms from any government authority or public sector undertaking."