The Karnataka government has suspended the managing director of Karnataka Electronics Development Corporation Limited (KEONICS) a day after he was accused of demanding 10 to 12 per cent in bribe in exchange for clearing bills amounting to about Rs 300 crores. The accusation was made the president of KEONICS contractor’s association Vasant Bangera against the MD, Sangappa, an IAS officer.
Interestingly, Sangappa’s suspension comes despite Karnataka Minister and KEONICS chairman Priyank Kharge reportedly denying the allegations of corruption in the state-owned enterprise. On 7th November, Kharge reportedly said that the accusation of 12 per cent bribe in exchange of clearing bills for the work done was baseless.
Kharge shifted the blame on the previous BJP government saying, “As per my knowledge, there is no such bribery case that happened in KEONICS during the rule of our government. It is true that there was widespread corruption and irregularities in KEONICS in the past four years and the Auditor General of India has objected to it. In my two reviews, I have found irregularities to the tune of over ₹250 crore.”
He said that considering this background, officials have been directed to take into account the Auditor General of India’s report and follow the rules before making any payment.
“In this background, the officials are directed to take into account the Auditor General of India’s report and follow the rules before making any payment. As per the rule in force, the payment for the work done cannot be made without third-party inspection and we are just following it,” Kharge said.
Furthermore, the minister blamed the contractors saying that their demand cannot be accepted. He said, “Some people are objecting to it. We cannot accept their demand. As you know, there are instances of contractors quoting ₹10,000 for a CCTV whose market price is just ₹1,000. There are also instances where contractors have quoted 20 times higher than the actual price for a product. Can we accept it? We have simply told the contractors to wait for some time by assuring them the payment after third party inspection of the work is done.”
Kharge added that the state will look into the allegation of bribery if documentary evidence is provided. “All these irregularities happened during BJP rule. After we came to power, we were not awarded a single work. Now, we are asked to pay the bills for the work awarded and completed during the BJP rule. BJP leaders must have accepted the bribes while giving the works to the contractors. I will shortly collect all the information and expose it before the people of the State,” he said.
