The managing director (MD) of Karnataka Electronics Development Corporation Ltd (KEONICS), Sangappa, who has been accused of demanding a bribe in exchange for the release of clearing payments, has reportedly been suspended by the Karnataka government.
The action comes a day after it was reported that the President of KEONICS contractors’ association has charged Sangappa with demanding a 10 to 12 per cent bribe in exchange for clearing bills worth Rs 300 crore.
Keonics MD Sangappa Suspended Republic Kannada Big Impact | ಸಂಗಪ್ಪ ರಜೆ ಮೇಲೆ ಕಳಿಸಿದ ರಾಜ್ಯ ಸರ್ಕಾರ .
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Vasant Bangera, President of KEONICS contractors’ association alleged that Sangappa justified his demand by claiming that he spent Rs 3-4 crore for the MD post and needed to provide money to officials at the top.
Interestingly, Karnataka Minister Priyank Kharge occupies the topmost position as the chairman of KEONICS, as is listed on its website too. Republic Kannada quoted Bangera asking why should he pay the bribe when he has committed no wrong.
Sangappa is a 2016 batch IAS officer who was appointed as MD of KEONICS in September this year. On 4th November, contractors staged protests outside KEONICS MD Sangappa’s office due to payments that have been outstanding for the past eight months.
Contractors have reportedly alleged that Rs 150 crore payment is outstanding. These contractors arrived for the protests from different parts of the state demanding that the outstanding payment be released and tenders be resumed.
Moreover, one of the contractors also attempted suicide by consuming poison. The contractor, named Syed, is reportedly awaiting a pending payment of Rs 60 lakh. While Syed was saved, other contractors warned that they would only be left with the option to consume poison if their demand was not met.
Charges of commission have also been levelled against Sangappa. Over 450 contractors are reportedly awaiting payment from KEONICS. Sangappa had said that the pending payment would be released by the 21st of October but the dues reportedly remain outstanding.
The money was supposed to be released on 15th September. The contractors have accused Sangappa of delaying the commission payment by preparing and signing the cheques only to cancel them later.
