ONGC director suspended

Shankar: Facing the heat

New Delhi, Feb. 24 (PTI): In a surprise move, the government has suspended ONGC director Shashi Shankar for alleged irregularities in an unawarded Rs 23-crore tender, the first such action against an official of the company in more than two decades.

Shankar, who as the head of technology and field services (T&FS) annually handles at least Rs 15,000 crore of contracts for rigs and oilfield services, was suspended last evening for alleged irregularities in a tender for 21 blowout preventers, the oil ministry said.

The tender, which was floated in 2008, hasn’t been awarded yet purportedly because of issues regarding the technical competence of the lowest offer. Also, there was a representation from one member of Parliament, who is now a minister in the NDA government, against the lowest bidder.

“Shashi Shankar has committed gross misconduct while dealing with a tender for the procurement of 21 blowout preventers. He has been associated with this tender as group general manager and officer on special duty to director (T&FS) and from January 1, 2012 as director (T&FS),” the ministry said.

It further said the government has taken “strong note of the lapses” and ordered the suspension of Shankar with immediate effect to “ensure fair and transparent inquiry”.

Shankar did not respond to the phone calls made to get his comment.

Sources said Oil and Natural Gas Corporation (ONGC) had in 2008 floated a tender for buying 21 blowout preventers, which are used to control and monitor oil and gas wells.

Seven companies initially expressed interest, but only three final offers were received from Cameron France, Continent Project of Singapore and Worldwide Oilfield Machine (WOM) of Dubai in 2011.

Price bids were opened in December where Worldwide Oilfield Machine emerged as the lowest bidder offering $ 4.14 million (Rs 23 crore).

ONGC’s board tendering committee, headed by the chairman, later formed a three member panel in August 2012 to check the suitability of WOM.

Shankar, who took over as director (T&FS) in December 2012, was asked by the same panel in August 2013 to examine various issues.

Three months later, WOM made a representation to ONGC’s independent external monitor, who in March last year held that the bidder was not declared successful even though it met the additional requirements prescribed by ONGC.

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