Karnataka Rural Development and Panchayat Raj, and IT-BT Minister Priyank Kharge on Thursday, November 9, said that corruption amounting to Rs 500 crore occurred in KEONICS (Karnataka State Electronics Development Corporation Limited) during the previous BJP administration. He announced that the case would be referred to the Justice HN Nagamohan Das panel, formed to investigate the 40% commission allegations by contractors.
Kharge was speaking at a press conference in Bengaluru, where he referred to the Comptroller and Auditor General (CAG) report in response to the BJP's call for his resignation, prompted by allegations from the Keonics Vendors Association regarding a 10-12% payment cut to officials for pending bills. Outlining the audit findings, Kharge highlighted various instances of misappropriation, including procuring goods at inflated rates resulting in a Rs 48 crore loss and generating fake bills for up to Rs 9.3 crore.
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He alleged that some vendors claimed Rs 4.43 crore without supplying the goods, and Rs 24.15 lakh was disbursed for setting up computer labs in schools, instead of the market of Rs 5 lakh significantly exceeding the market rate by 474%.
Regarding accusations of withholding funds from vendors, in connection with an alleged 10% commission sought from the Keonics MD, Kharge clarified that all bills, except for a few amounting to Rs 16 crore, had been settled. The pending bills were deliberately held back in accordance with instructions, as they await to be subjected to third-party inspection to verify their authenticity which is mandatory as per the Finance Department's protocol.
The minister said that the decision to keep these bills pending was driven by the commitment to transparency and adherence to established procedures. He said the BJP leaders were dissatisfied because he had deliberately delayed the processing of those bills to guarantee authenticity and maintain transparency.
According to a Deccan Herald report, Keonics Vendors Association president Vasant Bangera defended the price variation and said, "A computer requires software that comes at a cost. Rates also go high because, unlike a retail shop that provides a one-year warranty, we provide a 3-year warranty. What about the cost of transport, installation, and all that?"