SmartCity Kochi project sends danger signals

Kochi: With the prestigious SmartCity Kochi project sending danger signals including delayed payments to contractors ahead of its scheduled opening of its first phase in December, its Dubai-based promoter Smart City Dubai was on Tuesday forced to issue a clarification saying it stood by its commitment to the project.  

Sources familiar with the development have confirmed that there has been a delay in the payments to be made to contractors.

“This delay has the potential to derail the launch schedule of the first phase but the Dubai-based promoter has shown no interest to settle the issue with the seriousness it demands,” the sources said. The state government has also been lukewarm in its response to reports of financial irregularities emanating from the project.

Reports had earlier suggested that a special audit by the parent company had discovered that there were irregularities in the payments made to contractors by the then chief executive officer whom the company subsequently removed. They also said some of the building material used in the project were not of the specification originally agreed to.

SmartCity Dubai, in a candid admission that there were irregularities in the construction, however said “allegations regarding the irregularities during the period of the previous management will in no way affect the prestigious project and the scheduled announcement to inaugurate its first phase in December 2015.”

SmartCity vice-chairman Jaber Bin Hafez said an audit, a routine job, is progressing and the report will be submitted to board of directors’ consideration.

“The second phase will be launched during the inauguration of the first phase, as announced earlier and will be completed as per the prescribed time of 36 months,” he said.