The Crime Investigation Department of the Andhra Pradesh police has concluded that Telugu Desam Party president and former chief minister N Chandrababu Naidu is the mastermind behind the Rs 371 crore scam of the AP State Skill Development Corporation.
The entire scam involved running of the skill development project in the name of the Siemens Company, releasing government funds illegally and exerting pressure on higher officials for that purpose.
The funds were diverted to the accounts of the Telugu Desam Party leaders through hawala in the name of shell companies.
The CID said it had questioned three senior officials who held crucial roles in the then-government during this project and according to them, they had followed Naidu’s directives in distribution of money to the shell companies.
According to an official release from the state government, 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.
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. Lakshminarayana was the close friend of Naidu,” it said.
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 371 crore.
The money was diverted to shell companies like Allied Computers (Rs 60Cr transferred), Skillers India Pvt Ltd, Knowledge Podium, Cadence Partners, and ETA greens.
Then finance secretary Sunita did not agree to the release of funds stating that it was against the rules. In the note file, she listed three objections. However, her objections were dismissed by the TDP government.
“Former chief secretary IYR Krishna Rao directed that the funds be distributed in accordance with the directives given by Naidu and noted the same in the note file. According to the directives given, P V Ramesh, who was the Chief Financial Secretary at the time, disbursed the funds as instructed by the then CM and chief secretary,” the official note said.
The 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.
The ED has stepped up its investigation to determine whose bank accounts received the funds that were transferred to Singapore, the official note said.