Addressing the media on Wednesday, Padmanabha claimed that the audit report 2006-07 had pointed out that extension of time for contractors was not valid for projects under the Karnataka Municipal Reforms Project (KMRP). Also, the report suggested that the Palike recover liquidated damages from contractors at the rate of 10 per cent of the total amount awarded for contract.
The payment of additional amount in contravention of the KMRP rules clearly indicates that the authorities are hand-in glove with the contractors, by extending time to complete the projects, he said.
“As many contractors have completed the infrastructure projects after the stipulated time, the Palike cannot pay the revised rates to them. Moreover, delay in the completion of projects is a lapse on the part of the contractors,” Reddy noted.
The additional amount has been sanctioned to the contractors at the behest of former Palike Commissioner S Subramanya. The funds were sanctioned despite the objection raised by the chief auditor, he alleged.
Reddy demanded that BBMP Commissioner Siddaiah initiate action against the erring authorities and recover the excess money.