Swiss Challenge: Naidu Acting Above The Law, Violating Method Itself

Hyderabad: The recent circular by AP Finance Department declaring Swiss Challenge method for Amaravati development further holds the view that the TDP government is purposefully violating the laws and even Supreme Court’s recent verdict against Swiss Challenge. Worse, the policy being followed by Chandrababu government is even contradicting the Swiss Challenge system itself.

Supreme Court in its latest decision said there was no transparency in Swiss Challenge. Breaching all the norms, Naidu has involved in directly communicating with overseas companies and this is against the Supreme Court’s verdict and Swiss challenge norms as well.

According to the Swiss Challenge, the state government is not supposed to deal with foreign companies directly. But, the AP Chief Minister violated this norm as he frequently deals with foreign companies directly. Chandrababu Naidu earlier said it was an agreement between AP government and Singapore government (G2G) and got approval from the Centre.

Further violating the law that stipulates 51 percent stake by the government according to Andhra Pradesh Infrastructure Development Enabling Act (APIDE), the TDP government has agreed for a lower stake. Why the Chandrababu Naidu-led AP government has violated Supreme Court’s verdict, Swiss Challenge and APIDE in awarding capital city development projects to Singaporean companies?

AP government has not announced projects and their details under Swiss Challenge online. The government should not give project details to any organization as part of the Swiss Challenge and not supposed to deal with any overseas company directly. But, Naidu has been involving in dealing with foreign companies regularly. He has set up a high level committee comprising ministers. The AP Chief Minister and other ministers have dealt with Singapore companies.

Swiss Challenge mechanism stipulates announcement of projects in a total transparent way. But, AP government has not announced projects and their details under Swiss Challenge online. The government should not give project details to any organization as part of the Swiss Challenge and not supposed to deal with any overseas company directly. But, Naidu has been involving in dealing with foreign companies regularly. He has set up a high level committee comprising ministers. The AP Chief Minister and other ministers have dealt with Singapore companies.

Chief Secretary Refused to Endorse Swiss Challenge

Recently, Swiss Challenge issue made news as several media reports highlighted the differences between the AP Chief Minister and Chief Secretary over the issue. It’s learnt that Chief Secretary refused to sign a file forwarded by the CMO and sent it back. Generally, Chief Secretary signs files and sends them to CMO for final approval. Chandrababu Naidu became furious over the Chief Secretary’s act and signed the file and sent it to CS. It’s a reverse order of government mechanism and this has further highlighted the lapses in the government.

It’s learnt that Chief Secretary refused to sign a file forwarded by the CMO and sent it back. Generally, Chief Secretary signs files and sends them to CMO for final approval. Chandrababu Naidu became furious over the Chief Secretary’s act and signed the file and sent it to CS. It’s a reverse order of government mechanism and this has further highlighted the lapses in the government.

Based on Supreme Court’s verdict, AP Finance Department Principal Secretary PV Ramesh has issued a circular to all the secretaries, principal secretaries and HoDs explaining various nuances in the Swiss Challenge system.

The circular has advised all the departments to be careful with Swiss Challenge as there would be scope for malpractices. The details of projects to be undertaken under Swiss Challenge should be made public. What types of projects come under Swiss Challenge system should be made clear. Notifying the projects under Swiss Challenge compulsory and the officials concerned for this should also be made public.

Equal opportunities should be ensured for all to participate in the projects under the Swiss Challenge. Companies should submit their proposals on costs and bidding under the system, but the Government should not give any details.

AP government’s violations

- TDP government has violated Supreme Court’s guidelines, APIDE Act and Swiss Challenge as well.

Government has not announced rules and regulations under Swiss Challenge.

- The government has not notified details about the projects under Swiss Challenge.

-Companies should participate voluntarily under Swiss Challenge, but AP government on April 22 wrote a letter asking Singapore government to nominate master developing companies.

- Private companies from Singapore Ascendas and Sembcorp came to light in place of Singapore government company Singapore International Enterprises.

-AP government on May 26 agreed to take up a joint project with Singapore private companies.

- The joint venture proposal with 58 percent stake for Singapore companies and 42 percent stake for AP government was submitted to the state government. This is against the APIDE act.

-Before Chief Secretary’s endorsement, the Chief Minister Chandrababu Naidu approved the proposal by signing the document.