Transparency questioned after tenders are skipped 1,056 times

Bengaluru: Over 1,000 various public works and services worth crores have been procured without a tender process in the last three years, according to data. 

This includes surveys of the Congress’ five guarantees entrusted to two organisations without a tender process.

The “rampant” use of an exemption clause in the law has raised serious questions on transparency in public procurement.  

According to rules, any project below Rs 5 lakh need not be tendered according to the Karnataka Transparency in Public Procurements (KTPP) Act. But under Section 4(g) of the law, successive governments have skipped the tender process. 

The tender exemption clause was invoked 291 times in 2021, 386 in 2022 and 379 up to December in 2023, according to data tabled by Chief Minister Siddaramaiah in the ongoing session of the legislature. The BJP was in power in 2021 and 2022. The Congress came to power in May last year. 

The Siddaramaiah administration invoked the exemption clause to entrust M2M Media Network with carrying out a survey of four guarantees -- Gruha Lakshmi, Gruha Jyoti, Anna Bhagya and Shakti -- at a cost of Rs 1 crore. The clause was used to give Mumbai-based XKDR Forum another Rs 1 crore to conduct studies on all guarantees, including Yuva Nidhi. 

When the BJP was in power, the tender process was evaded to have RSS-linked Rashtrotthana supply books to state-run schools worth Rs 4 crore. A sum of Rs 9.35 crore was approved without tenders for SRC Infra Developers and Sowmyashree Enterprises to set up model testing tracks on high-density corridors in Bengaluru. 

Over the years, tender exemptions were given for purchase of vehicles for lawmakers, furniture at government offices and various consultancy services. 

“Section 4(g) has lost relevance. If thousands of works have to be brought under it, then what is the need for a tender process?” senior Congress lawmaker R V Deshpande, who heads the Karnataka Administrative Reforms Commission, said. “It must be used only in exceptional circumstances where there is no time to afford the tender process.” 

IT/BT & Rural Development Minister Priyank Kharge admitted that Section 4(g) is a “double-edged sword”. Recently, he scrapped the tender exemption given to the state-owned Keonics following irregularities.

“We have been saying that the use of Section 4(g) is rampant. It is being misused. The government must stick to transparency through tenders,” Karnataka Rashtra Samithi general secretary Deepak C N said.