Karnataka I-T crackdown targeted PWD cash supply chain: Central government official

According to the official, money was being transported in convoys daily, with police protection, to the residences of Congress and JD(S) leaders, to be distributed to party functionaries.
Representational image.
Representational image.

BENGALURU : Thursday’s IT raids on people close to the powers-that-be were a bid to choke supply of funds to politicians during election season. A central government official told TNIE that a well-oiled cash collection machinery was at work: every day, money was being transported in convoys, with police protection, to the residences of Congress and JD(S) leaders, to be distributed to party functionaries. 

Crucial to this cash supply chain is the Public Works Department, and its politician-engineer-contractor nexus. Department sleuths zeroed in on the links in this chain, and searches at multiple locations reportedly unearthed large amounts of cash and incriminating documents, which establish a thriving bribe racket.    

“There is a nexus between the politician, engineer and contractor. Many politicians are involved in money collection from contractors — it is channelled through their assistants, and the cash transported in convoys with sufficient police protection on a daily basis. The money was being hoarded at the residences of Congress and JD(S) leaders, from where it was distributed to lower-level party functionaries,’’ said the central government source, who defended the timing of the raids during elections.

“The bribe racket includes allocation of government work orders to trusted aides, and for whom funds would be released on a priority basis in the months preceding polls,” the official said.In this racket, the role of engineers is critical. They coordinate with their political bosses on allocation of tenders to their loyalists, and give approval for tenders in exchange for benefits, they release funds on priority even where there is no work done. They also coordinate with contractors on the release of money, and collection of the withdrawn money, and for aiding the process, they get their cut, the source said. 

The racket involves contractors too. The transfer of money into their accounts occurs immediately, and contractors mostly transfer the cash to close associates and then withdraw it. In this kickback racket, engineers aid politicians in awarding contracts to their trusted people while contractors aid politicians by withdrawing money and returning it to them for use in the poll process. 

All billing, release of funds and coordination was being managed by certain engineers of the PWD department, following instructions of their political masters, the source said. Engineers in the PWD and associated departments and government companies, who are aiding and assisting the execution of this racket, are in turn beneficiaries, he added.

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