July 28th 2023.
Every year, thousands of potholes appear on Mumbai's roads during monsoon season, causing substantial difficulties for the city's citizens. This year, the Municipal Corporation of Greater Mumbai has allocated ₹250 crore to fill up the potholes. Every administrative ward has been given ₹3 crore for the purpose.
But why do potholes keep appearing? According to a senior former corporator with an insider view, it is a result of massive corruption in the awarding of road contracts. He provided a step-by-step account of the corruption involved.
The first step is for the contractors and corrupt officials to come together to decide the estimated cost of the work and the terms and conditions of the tender. A token down payment is made. Afterwards, assistant commissioners are asked to provide a list of roads to be cement concretised or improved with bitumen. The tenders are then fine-tuned and packages of work are announced. At this stage, around 5% of the contract value is given to pliable engineers.
After the bids are received and evaluated, the administrative proposal is placed before the Standing Committee - usually composed of corporators from all major parties. At present, however, the administration is exercising the powers of the Standing Committee. It is estimated that 20% of the contract value is given to corrupt members of the Standing Committee to be shared with party leaders.
The proposal is then forwarded to senior officials, and if they are corrupt, they are given 4% of the contract value. When the work orders are issued, the engineers are rewarded with 4%, and corrupt accountants are given 1.5% for clearing the bills quickly. Finally, if any complaints are received, the complainant is managed with a suitable cut.
Altogether, 35% of the contract value is eaten away by corruption. The contractor keeps at least 20% as a profit margin, leaving only 45% for the actual work. It is no surprise that large companies like L&T and HCC avoid taking part in the bids.
The opposition leader of BMC recently reported that over 6,000 potholes have been filled, but thousands more need repair. Unless the nexus between MCGM staff, contractors, and politicians is broken, Mumbai is doomed to have potholes every monsoon.
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