Nation Current Affairs 05 Nov 2018 KPMG bags govt’s R ...

KPMG bags govt’s Rs 6.79-crore contract

Published Nov 5, 2018, 5:50 am IST
Updated Nov 5, 2018, 5:50 am IST
Kerala government logo
 Kerala government logo

Thiruvananthapuram: The state government has decided to award a Rs 6.79 crore contract to KPMG Advisory Services for the third party audit of the State Data Centres (SDCs) and the Kerala State Wide Area Network (KSWAN).

The decision assumes significance as it comes close on the heels of controversies over a decision of the government in August  to give Rs. 66 lakh crore work for NORKA Roots website development and redesign to KPMG. The international consultancy agency was made the consultant partner of state government for post-flood rebuild Kerala initiative. Opposition leader Ramesh Chennithala had alleged that the decision to give the Rs. 66 lakh work to KPMG by overlooking government agencies was in lieu of the free consultancy service offered for Rebuild Kerala.

The Electronics and IT  department issued the order on October 29 awarding the Rs. 6.79 crore contract to KPMG for third party audit of KSWAN for three years and as well as the two SDCs for five years. Monitoring performance, conducting security audits and suggesting corrective measures are the responsibilities of the third party auditors.

According to the order issued by IT Secretary M.Sivasankar, the third party auditors are appointed as mandated by the Central Government department of electronics and IT. KPMG was selected through a tendering process. Apart from KPMG, Deloittee Touche Tohmatsu India Private Limited and Ernst and Young (E&Y) also submitted request for proposal. But E&Y and KPMG were only technically qualified.

 In the financial bid, E&Y quoted Rs. 8.39 crore and KPMG quoted Rs. 6.79 crore. Subsequently KPMG, being the lowest bidder, was selected for the work.



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