D K Shivakumar flags 'illegal' CSR donation practice by corporates in Karnataka

The Deputy CM was taking stock of the progress on building 500 model Karnataka Public Schools (KPS) using Corporate Social Responsibility (CSR) funds, which is his pet project.

Bengaluru: Corporates in Karnataka are donating funds to private nonprofits in other states through cheques and taking back half of the amount in cash, Deputy Chief Minister D K Shivakumar said, calling it an “illegal” practice.

Shivakumar made this charge Saturday at a review meeting with all deputy commissioners and Zilla Panchayat chief executives, where he took stock of the progress on building 500 model Karnataka Public Schools (KPS) using Corporate Social Responsibility (CSR) funds, which is his pet project.

He fumed when he learnt that progress was below expectation.

“Every year, Rs 8,000 crore is available under CSR in Karnataka. The government had made it clear earlier that these funds must be channelised towards building schools. Still, this has not been achieved,” Shivakumar said during the meeting, according to a statement from his office.

“The state’s corporates are making CSR donations to private nonprofits in other states via cheques. Of the donated amount, they’re taking back 50% in cash. This is illegal. The state’s [CSR] fund is being misused because of this", Shivakumar said, adding that it was the responsibility of DCs and Zilla Panchayat CEOs to ensure that CSR funds are used for the development of the state’s schools.

Shivakumar specified that he does not expect corporates to give money to the government.

“Let them build one school for three gram panchayats. If necessary, the government will provide land and the design. Let them construct the building and provide other basic facilities. Let them also name the school after themselves,” Shivakumar explained.

According to data furnished in the review meeting, corporates have committed to spend Rs 250 crore under CSR to build 500 model schools. Of this, corporates have paid Rs 126.21 crore.

Shivakumar said 13 Karnataka Public Schools are being constructed in his Kanakapura constituency, each at a cost of Rs 9-12 crore. “But work is happening in a few places only. In most places, nobody is showing interest,” he said, directing officials to reach out to corporates and mobilise CSR funds for school development.

CSR for edu: Two officials named

The state government on Saturday appointed IAS officers Gunjan Krishna and Khushboo Goel Chowdhary to mobilise Corporate Social Responsibility (CSR) funds for the construction of Karnataka Public Schools. Gunjan will be the coordinating officer while Khushboo is named as chief executive officer for this purpose.