Hyderabad, Nov 21 (UNI) Andhra Pradesh Major Irrigation Minister P Laxmaiah today said his Ministry would give clarifications to the Comptroller and Auditor General (CAG) on its findings that irrigation project contractors enjoyed 'undue benefits' to the tune of Rs 539 crore before completion of work under 'Jalayagnam' in connection with projects on the River Godavari.
Addressing the press here, Mr Laxmaiah said, 'We will give clarification to the CAG on its findings on incorrect estimates of funds and materials by the Irrigation Department for Godavari Water Utilisation Authority causing huge loss to the government.'' Claiming the CAG's statements were contradictory and the report was only primary, he said, adding it was not a fact the funds were misused as there was no possibility of such happenings.
Welcoming the recommendations of the CAG report, Mr Laxmaiah said the Department would re-examine its observations. The new EPC system adopted to select the contractors should have been studied by the CAG thoroughly.
Pointing out the same, CAG found fault with the previous Telugu Desam Party (TDP) Government on Budget allocations for Telugu Ganga, Sriram Sagar and silt arresting tanks taken up at a cost of Rs 900 crore funded by the World Bank, he said. The party should answer whether it accpeted the findings before indulging in mud-slinging on the government, he added.