‘Panel to review works above Rs 50 crore won’t check corruption in tenders’: K'taka Contractors

Kempanna, who has been vocal about problems being faced by contractors and has even written a letter to PM Narendra Modi, spoke to TNIE on ways to put an end to corruption in public works.
Image used for representational purposes only(Photo | EPS)
Image used for representational purposes only(Photo | EPS)

BENGALURU : Karnataka Contractors Association office-bearers, led by its president D Kempanna, are expected to meet Chief Minister Basavaraj Bommai at his official residence Krishna on Monday.

Corruption in awarding contracts has been on the boil ever since civil contractor Santosh Patil committed suicide, alleging that his bills were not being cleared unless he paid a 40% commission for the works completed. Kempanna, who has been vocal about problems being faced by contractors and has even written a letter to PM Narendra Modi, spoke to TNIE on ways to put an end to corruption in public works.

What is the status of works? Have they been impacted and to what extent?
The progress has not been affected as a lot of projects of over Rs 10,000-15,000 crore are going on. But if we have to pay 40 per cent commission and another 17 per cent in taxes, we are left with only around 10 per cent. How will the works be qualitative?

The chief minister has announced that a high-level committee, headed by a retired high court judge, will look into tenders of above Rs 50 crore to bring in transparency and check corruption...
This will not help as tenders of works below Rs 50 crore will not come under this committee’s purview. Shrewd engineers will then start calling for tenders for Rs 49 crore to go under the radar of the committee. A similar strategy was adopted when the government made calling for tenders mandatory for works above Rs 5 lakh. How many projects worth Rs 50 crore and above are taken up? Very few.

What feedback did you get from PMO or CMO after you wrote to them?
There has been no communication from the Prime Minister’s Office at all. But the CMO has called us for a meeting at 3.30 pm on Monday. In the meeting, we will put forth our demands, like reducing corruption, avoiding granting contracts to outsiders and clearing pending bills of Rs 25,000 crore, of which Rs 10,000 crore is with the irrigation department alone.

Congress is taking political advantage of allegations by contractors...
Was there no corruption during the Congress government? Of course, there was. But the situation has turned abnormal since 2019, to the extent that we could not bear it. There was also criticism from the public.

Contractors take up works without getting work orders. What’s your opinion?
It is a bad practice which even the principal secretary admitted to. It holds good only during emergencies. For instance, if a bridge falls during floods, we cannot wait for the work order to start. But in the RDPR department, officials have allowed projects to be taken up on their whims and fancy, without issuing work orders. Such works worth Rs 250 crore are under progress.

There was an allegation that you are KPCC president DK Shivakumar’s man.
I have not even met him so far. But (former RDPR minister) KS Eshwarappa had made that false allegation and had also said I hail from Kanakapura. In fact, I am from a village in Bengaluru East.

Health Minister Dr
K Sudhakar has warned that he will file a defamation case against you...
I welcome it. I will legally fight it out as I have evidence against him for the allegations that I have made that 60 per cent of the works in his department were being given to his close relatives.

Do MNCs also have to pay huge commissions?
Giving commission has various methods, and MNCs may have their own. But I do not know much about it as I am concerned about my local contractors. It is clear that the government gives package work to outsiders to collect commission. For a Rs 100 crore project, even 20 per cent commission is a good amount. Whether the quality of such works is good or outsiders implement them within deadline remains a question. There are instances of works remaining incomplete even after 2-3 years.

What is the way out to check corruption?
We should have a systematic approach to eradicate corruption by constituting a full-fledged committee, also including the concerned contractors. A retired IAS officer Raghunandan, who had visited many countries, produced a report on where corruption sneaks in and how to bring in transparency. The government should take advice from such people. In 2012, the then prime minister Manmohan Singh had tabled the Public Procurement Bill, but the Modi government let it lapse in 2014. If the Centre passes the bill, it will help to some extent in checking corruption as the states have to follow the rules.

How is the situation in our neighbouring states?
Not like here. There is not much corruption, especially in Kerala. Tamil Nadu has stopped giving works in packages to outsiders. This will help more local contractors participate in the tenders and reduce corruption.

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