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Karnataka contractors demand early settlement of Rs 25,000 crore dues

D Kempanna, President, KSCA, said around Rs 25,000 crore has been pending as dues over the last three years. "The government has assured to clear dues as much as possible by March 31," Kempanna said, failing which contractors would stop work.

KSCA has been fighting corruption for the last one and a half years, D Kempanna, President, KSCA said.
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The Karnataka State Contractors Association (KSCA), which has levelled grave allegations of corruption against the State Government, staged a protest Wednesday demanding the payment of dues for various developmental works carried out in the state.

D Kempanna, President, KSCA, said around Rs 25,000 crore has been pending as dues over the last three years. “The government has assured to clear dues as much as possible by March 31,” Kempanna said, failing which contractors would stop work.

KSCA has been fighting corruption for the last one and a half years, he said. “When we made allegations (of 40 per cent commission sought to clear bills), it was dismissed saying that we did not have any documents. However, to prove that we did have evidence, we released one sample,” Kempanna said referring to the audio clip released Monday.

The clip was of a conversation between BJP MLA G H Thippareddy and contractor R Manjunath, Working President, KSCA, where they can be heard talking about commission for various works. Manjunath had alleged that he had paid Rs 90 lakh as commission to the MLA over the last three years.

Kempanna said all cases of demands for the commission were similar. “We have provided all documents about 40 per cent corruption to our lawyer. He will submit it to the court,” he said.

Kempanna was sued for defamation by Horticulture Minister Muniratna after he made corruption allegations against the minister.

Contractors are often accused of cheating and siphoning government money. “But, how can we do quality work after paying 40 per cent of the project amount as commission?” he asked.

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Criticising the package system, where different works are clubbed together, he said only contractors from outside the state had benefited from it. “We are reduced to being daily wage labourers,” he claimed.

Kempanna also dared the state government to form a commission to investigate the veracity of their allegations.

The corruption issue has rocked the state ever since KSCA wrote to the Prime Minister’s Office complaining of demands for a 40 per cent commission. Opposition Congress had demanded a judicial probe into the allegations made by KSCA.

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