Contractors' body meets Bommai, flags corruption

The Karnataka State Contractors Association petitioned Chief Minister Bommai on Monday and asked him to put an end to the 'package system' of awarding tenders and take steps to stop corruption, which it said is rampant.

This was the first meeting between Bommai and the contractors after the Association went public with its '40% commission' accusation last year by lodging a complaint with Prime Minister Narendra Modi, which triggered a political storm.

A delegation led by Association president D Kempanna also urged Bommai to clear pending dues based on seniority.

The memorandum submitted to Bommai said that the 'package system' of contracts in which several different works are merged into a single package, was designed to benefit contractors from other states.

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"Contractors from Karnataka have to struggle to even win tenders that are worth only a few lakhs. Therefore, package system should be completely abolished and tender for all works should be floated separately. This will help local contractors and also ensure quality of works," the petition said.

In Tamil Nadu and other states, laws are amended to provide works only to local contractors. "We urge you to follow a similar practice in Karnataka," the Association said.

The Association also alleged that the state-run Karnataka Rural Infrastructure Development Ltd (KRIDL) is acting as a "broker" and blamed the agency for the poor quality of works. "We request you to completely shut down the company," it said.

The practice of 'revised estimation' is also promoting corruption, according to the Association, which requested the CM to not allow such revision.

Around Rs 20,000 crore dues are pending to contractors from Water Resources, Public Works, RDPR, BBMP and other departments. "While influential contractors succeed in releasing their dues, there are instances where dues are released based on political pressure," the petition stated, urging Bommai to release the dues.

The memorandum also raised concerns over corruption. "Corruption starts even before the tender is floated and continues until bills are paid. In most of the districts, there are irregularities when tender is awarded. There are instances in every district where a tender meant to be awarded to the lowest bidder (L-1) is given to ineligible bidders ranging from L-2 to L-8," the memorandum said.

Recalling the government's decision to constitute a committee to vet tenders worth Rs 50 crore and above, the Association said that the limit should be reduced to Rs 5 crore.

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