Thiruvananthapuram: The law department of the Kerala government has struck down the recommendation of a chief secretary-headed committee to terminate the services of PricewaterhouseCoopers (PwC) at the scandal-hit IT department, once headed by the disgraced bureaucrat M Sivasankar. With this decision, the multinational consultant will continue to associate with the ambitious Kerala Fibre Optic Network (K-FON) Project.

PwC role came under the scanner after it emerged that Swapna Suresh, the key accused in the gold smuggling case, was placed in a plum job at the Space Park, despite poor credentials, with the blessings of her patron Sivasankar.

The committee had demanded a ban on PwC for violating the contract norms by appointing a person with a criminal background and for possessing a fake degree certificate. On July 17, the chief secretary had submitted a letter to the government demanding that the recommendations be implemented at the earliest.

Early investigations had revealed that Swapna had submitted fake records and was embroiled in a legal wrangle in a previous job.

The action against PwC will now be limited to demanding back Rs 19.06 lakh paid to Swapna for her services in the IT department, once headed by her friend and tainted bureaucrat Sivasankar. (Both have been arrested amid the probe into the gold smuggling case.)

Impact on K-FON project

PwC is expected to continue till its pact with regard to the K-FON, the mega project aimed at development of internet infrastructure in the state, expires.

The law department contended that it is not practical to remove professional agencies before the completion of contract period as each project has a separate contract.

The PwC contract for the K-FON project is up till November 30. With the project getting extended, the contract too has to be extended naturally. However, the IT department has decided against it. The department is planning to put up its own team.

So far Rs 3.32 crore have been spent on seven PwC consultants associated with the K-FON project.

Sanjay M Kaul, who held the charge of IT department, and Rajesh Kumar Singh, the additional chief secretary (finance), had recommended to the panel removal of PwC. Though this file was sent to the law department on the instructions of the chief minister, a decision on it got delayed.

The managing director of the Kerala State IT Infrastructure Ltd (KSIIL), where Swapna had worked earlier, too had also wrote a letter to the government seeking advice on the continuation of PWC in K-FON project.

Fake certificate case for Vigilance

State Police Chief Loknath Behera has urged the Home Secretary to hand over Swapna's fake degree certificate case to the Vigilance and Anti Corruption Bureau (VACB).

The case is currently being probed by the Cantonment Police.

Swapna is the first accused in the case pertaining to obtaining a job in Space Park after producing a fake degree certificate.

PwC and Vision Technology, which recommended Swapana for the job, are the second and third accused respectively in the case.