Gold plating allegations in East West Pipeline-I: PNGRB caveat says it reserves right to verify cost data
Well placed PNGRB sources told this website that they have been monitoring news reports of alleged gold plating of the pipeline cost of Reliance Gas Transportation Infrastructure Ltd's East West Pipeline Ltd (EWPL). Dutch investigators have claimed that they have arrested three former employees of a local company which was involved in the construction of the pipeline for over-invoicing the cost of materials to the extent of an estimated $1.1 billion. The money was reportedly funneled back through a web of intricate transactions to a promoter group of Reliance Industries Ltd. 8It is to be noted however that both RIL and the promoter group have vehemently denied the allegations of the Dutch investigators. 8"If it is clearly established that there has been gold plating, PNGRB always reserves the right to review. In fact, we had put in a caveat in the tariff order regarding the pipeline last month that the tariff was decided based on the information given by the company and PNGRB intends to verify the data through its internal team or through an external agency and, accordingly, the tariff can be subjected to revision." PNGRB sources told this website. Click on Reports and Details for more.