TAXPAYER'S CONCERNS

GOVT AUCTION LURES BARGAIN-HUNTERS... AND HOW!

By Frederick Noronha

PANJIM, APRIL 26: Want to try and get a couple of old Enfield
bikes for around nine thousand rupees? Or some seven old
typewriters for under two thousand in all?

Goa government used equipment worth an estimated Rs 200 lakhs is
being auctioned currently, from April 25 to 27 at the Institute
Menezes Braganza, and the chance of getting an extra-good deal
has lured masters in the auction art from across the country.

"Two (used) Enfield bikes went for Rs 9000," claimed a bystander
at the hall, which was witness to curious scenes on Wednesday.

Some participants in the auction were seen shouting for the
official auction to close around six p.m. But after that, perhaps
having secured an extra-good deal, the participants promptly
proceed to unofficially auctioning the lots of vehicles, office
equipment, and departmental machinery among themselves.

Earlier in the evening, the official auction was conducted by the
MSTC. "It is a Government of India enterprise. There is a
committee to oversee it all and take care of government
interests. So there's no problem," said PWD executive engineer
A.D Nachinolkar who is the nodal officer for the auction, when
contacted telephonically.

But the scenes in the Menezes Braganza Institute -- supposedly a
centre for cultural activities -- seemed to turn even sound
business sense on its head.

Lacklustre interest in the auction suggest that many items of
governmental property was sold at throwaway prices. Questions
remain more so because after the official auction, many
outstation participants began re-auctioning items amongst
themselves, in public view, and continued till the hall was shut
around 8 pm.

"You say the prices were low. People were saying the reserve
price (the minimum price the auction starts at) was high," said a
spokesperson of the MSTC, the Ministry of Steel body which
conducts the auction. MSTC's Suryakant added: "Of course, bidders
will always say that."

Long lists of items from some 52 items were being auctioned,
according to executive engineer Nachinolkar. He estimated the
items to be "not over Rs 2 crore". But the MSTC said their rough
estimate was Rs 70-80 lakhs.

When asked whether he was satisfied with the prices realised,
MSTC's official, who was down in Panjim for conducting the
auction, argued: "We're doing our job.... We don't think it's
(prices) so low."

"It's scrap. In Bombay, it could be more costly to keep such
items in your office. All are scrap items."

Some of the items put up for auction were ageing or battered
typewriters, obsolete and "beyond repair" Facit adding machines,
steel and wooden tables and chairs, "very old" intercoms, and
executive chairs also in a "beyond repair" condition.

But there were also government photo-copying machines,
airconditioners, nine roadrollers of varying ages from the PWD
and Irrigation Departments, and at least 26 tractors in varying
conditions.

There were also a number of motorbikes and cars, and 16 Maruti
vans from the Department of Information. There were also 14
motorcycles, two minibuses, 4 Maruti Gypsies, and 5 jeeps plus a
crane from the Goa police.

Also up before the auctioner was a list of equipment from the
Inspectorate of Factories and Boilers -- a vitalograph compact,
glucometer, explosivemeler MSA, personal air samples AFC,
bactriological incubaters, Uni-insta ECG m/c, water analysis kit,
luxmeter, audiometer, ECG3 channel schiller, sound level meter,
noise dosemeter, Keispcold dehumidifier, and the like.

Taxpayers in the state could be left wondering whether this
equipment was put to the optimum use intended, while in a usable
condition.

Engineer Nachinolkar said the last auctions of the government
were held in September 1999. "This is very small. Each year MSTC
auctions Rs 600 crore worth of scrap. Here, some items were going
for even Rs 600," said the MSTC official who spoke to this
correspondent.  (ENDS)