Embassy New Delhi, India and Constituent Posts - OIG - US ...

SENSITIVE BUT UNCLASSIFIED
inspection, it still was not open and the projected completion date had slipped yet again to
September 2011. Given the numerous and lengthy delays of this project, the OIG team viewed
with great concern the future of the new consulate compound in Monterrey, Mexico, which the
same contractor will construct.
Consulate General Mumbai has also been working to resolve issues related to taxes
assessed against various U.S. Government-owned residential and nonresidential properties. The
consulate general requested information from the Department in July 2010 for use in resolving
some of the remaining issues, but it received only a preliminary response in August 2010.
Consulate General Mumbai believes that the information could help break the logjam that
prevents resolution of the tax issues.
Recommendation 51: The Office of Foreign Missions should assist in the resolution of
Consulate General Mumbai’s tax issues by responding to the telegraphic request for information
contained in Mumbai 00220, dated July 27, 2010. (Action: OFM)
Consulate General Hyderabad opened to the public in March 2009, operating from
offices located in the former Paigah Palace. Physical security deficiencies preclude the use of
two annex buildings located at the rear of the compound for anything other than property storage
or intermittent occupancy. The initial lease term is 5 years, with an option for another 4 years
and 9 months. There are indications that the state government may be reluctant to grant further
extension of the lease beyond 2017. OBO completed an $11 million renovation of the ground
floor in early 2009, and is planning further rehabilitation of the vacant second floor to
accommodate consular section expansion and provide additional office space.
Given the limited operational space and the inherent security vulnerabilities of the Paigah
Palace compound, the Department included a new consulate compound for Hyderabad on the
Department’s list of the Top 80 construction projects, ranked according to security
considerations. The U.S. Government and the Andhra Pradesh state government identified an
appropriate site for the new consulate compound in a developing suburban area, and signed a
memorandum of understanding for rights to this property. However, the Hyderabad new
consulate compound project was not included in the most recent revision of the Top 80 project
lists. Nevertheless, OBO is still proceeding with negotiations to acquire the property. Mission
management regards this acquisition as an important step forward that could reestablish the
Hyderabad new consulate compound on the list of priority projects. In view of the security and
operational limitations of the current compound, as well as the uncertainty over extending the
lease beyond 2017, the OIG team concurs with the acquisition of this property, and recommends
that the Hyderabad new consulate compound be reinstated on the construction project priority
list.
Recommendation 52: The Bureau of Overseas Buildings Operations should effect the lease of
the property identified in the memorandum of understanding between the U.S. Government and
the Andhra Pradesh state government as the site for the new consulate compound in Hyderabad.
(Action: OBO)
On a more basic level, the facilities management unit in New Delhi provides adequate
levels of service to its customers, as evidenced by ICASS customer service and OIG
questionnaire results that in large part meet or exceed regional and worldwide averages. Its large
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SENSITIVE BUT UNCLASSIFIED