Andhra Pradesh: The recently revealed skill development corporation scam involving Siemens Industrial Software India Ltd and Design Tech Systems Pvt Ltd makes it abundantly evident that Chandrababu Naidu, the state’s then chief minister, was the project’s mastermind. With evidence, it has been shown that everything proceeded according to Chandrababu’s well-oiled plan, including running the project in the name of the Siemens Company, releasing government funds illegally, exerting pressure on higher officials for that purpose, and adding those funds to the accounts of TDP leaders through hawala in the name of shell companies.
THE AP CID has been looking into the APSSDC fraud that took place during the TDP regime under the guise of a Siemens project for Rs 3,300 crore. It appears that the CID authorities, who have already made numerous arrests in the case, have discovered additional significant evidence throughout their investigation. When the CID questioned three senior officials who held crucial roles in the then-government during this project, they revealed these facts. It was discovered that Chandrababu’s directives were the only reason the money was distributed illegally.
APSSDC was a tool used by the then-CM Chandrababu Naidu to carry out the dubious project. A project of Rs. 3,300 crore was proposed for that reason under the German company named Siemens Industrial Software India Ltd. In actuality, this project was unknown to Siemens’ corporate headquarters. The narrative was published while Suman Bose, the MD of Siemens Company at the time, was banned.
Suman Bose, the MD of Siemens, and Vikas Kanwilkar, the MD of Design Tech, met Chandrababu in 2014–15 as part of that scam. Siemens and Design Tech have agreed to contribute 90% of the funds if the government contributes 10%. An important role in this scam was played by Ganta Subbarao, the MD, and K Lakshminarayana, a former IAS officer who was the director of APSSDC at the time. Also involved was K Lakshminarayana is also a close friend of Chandrababu.
Siemens Industry Software India and Design Tech had not spent a single rupee from their own resources on this project, but in fact, siphoned off a major portion contributed by the Government of Andhra Pradesh as its share for the 10% of the project cost, amounting to Rs 371Cr. The money was diverted to shell companies like Allied Computers (Rs 60Cr transferred), Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA greens.
The finance secretary of the then TDP government, Sunita IAS, did not agree to the release of funds stating that it was against the rules. In the note file, she listed three objections.
– Such a large-scale estimated project should be tested out as a pilot in a few districts before a decision is made.
– It is incorrect to release government share funding without first establishing the Siemens Business Center of Excellence.
– Of the 90% of the share that was to be funded by the Siemens Corporation, not a single penny has been spent. It is not suitable in this situation to release the government’s share of 10% (Including GST) of Rs. 371 Cr.
However, Sunita’s objections were dismissed by the TDP government. The former Chief Secretary IYR Krishna Rao further directed that the funds be distributed in accordance with the directives given by the former Chief Minister N. Chandrababu Naidu and noted the same in the note file. According to the directives given, PV Ramesh, who was the Chief Financial Secretary at the time, disbursed the funds as instructed by the Chief Minister and Chief Secretary.
AP CID authorities got in touch with Siemens’ German headquarters as part of their probe into this scam. Siemens Management clarified in writing to CID & APSSDC that Suman Bose acted on his own, without keeping the management or the Legal team informed about the Agreements being made and he concealed the facts about his involvement with certain shell companies. His services from the company were terminated.
On the other hand, a thorough investigation into the APSSDC scam has been launched by the Enforcement Directorate (ED). Notices have been issued to a total of 26 suspects in this matter, including the then CM’s close associates and the shell companies. Many of them have previously been investigated. The ED has stepped up its investigation to determine whose bank accounts received the funds that were transferred to Singapore.
