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A forensic audit has raised several concerns on Multi Commodity Exchange (MCX) decision to award a technology contract for a spot-trading platform in 2018 to a London-based company, PESB.
The forensic audit report of ABN Systems has alleged conflict of interest issues and a slew of discrepancies in the agreement. The report said that MCX allowed PESB to appoint its own office as an external expert to vet the contract.
MCX did not reply to email queries sent on June 24.
In 2018, MCX had awarded a technology contract to PESB for which the exchange made most of the payments in advance. The software was delivered three years after the deadline, but turned out to be a failure. In 2019, BusinessLine had first reported about the controversial deal.
Contract lacks basic info
The forensic audit says the contract lacked even the basic details such as date, proper signatures, mention of place of signing or names of the witnesses. In April, the chairman of the audit committee Pravin Tripathi also informed the MCX board about the audit report and listed the severe discrepancies.
The forensic report said the agreement was finalised at the level of MD and CEO and was not shared with SCT or the Board. Date and place of signing was not mentioned in the agreement. The names of the witnesses are not there in the agreement.
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