‘Engineers seek 10 per cent bribe to release cash to contractors’

“Though the government has released a Letter of Credit (LoC) amount, the engineers have been delaying releasing it to contractors, apparently expecting a bribe.
Image used for representation.
Image used for representation.

BENGALURU: Karnataka State Contractors’ Association president D Kempanna on Tuesday alleged that chief engineers, especially in North Karnataka, have been demanding a 10 per cent bribe to clear bills against works already being implemented. He warned that if the situation continues, contractors will lay siege to Chief Minister Basavaraj Bommai’s residence. 

Briefing the press about the alleged bribery issue, he warned that contractors, with the help of advocates 
in the respective districts, would move court for release of the amount, keeping in mind the date of implementation of work.

“Though the government has released a Letter of Credit (LoC) amount, the engineers have been delaying releasing it to contractors, apparently expecting a bribe. We have got information on this, and the authorities can inquire into it. We suggest the government releases the entire Rs 22,000 crore which is pending, and call for tenders for new works, complying with the availability of resources,” he suggested.

It is because funds were not released by the government against works implemented, that the engineers are allegedly taking advantage, and releasing funds to those who pay a bribe, in violation of rules. “As per rules, 80 per cent of the amount should be released based on seniority of work, and 20 per cent is the discretion of the officer.

But engineers released money to those who completed work just two months ago, keeping aside pending bills of works implemented two years ago,” he alleged. The system has to be blamed as ministers, MLAs and senior officers give instructions to engineers to release the amount to certain contractors, he observed.

Of the Rs 22,000 crore pending amount, the public works department accounts for Rs 10,000 crore, irrigation department Rs 8,000 crore and Bruhat Bengaluru Mahanagara Palike (BBMP) Rs 3,000 crore.

With assembly polls coming up, the government may use the Model Code of Conduct (MCC) as a pretext to delay the release of funds, he said. It may be recalled that the Contractors’ Association had written to PM Narendra Modi in November 2021, alleging 40 per cent commission in the government, creating ripples. 

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