Contractors are now up in arms against the government over “rampant corruption” in awarding projects.
A complaint to the Prime Minister’s Office (PMO) claims contractors are “harassed” by ministers, elected representatives and others who demand up to 30% of the tender amount for approving a contract, and 5%-6% towards release of Letter of Credit against pending bills.
Karnataka State Contractors’ Association says bills worth Rs 17,000 crore are due at the end of October.
“Invite tenders only on the basis of available funds to avoid hardship to contractors,” they said in another letter to elected representatives.
How can quality work be executed by paying up such a large share of the tender as bribes, the association said.
The association, in the letter to elected representatives, alleged that problems of contractors had multiplied after the pandemic. “Lakhs of labourers too are facing problems ... dues from the Public Works Department have reached Rs 4,500 crore, while it is Rs 6,000 crore in Major Irrigation and Minor Irrigation Departments. BBMP's dues are Rs 3,000 crore.”
D Kempanna, president of the association told DH they would stage a protest in Bengaluru in December if the dues are not cleared.
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