Karnataka govt forms panel to probe ‘irregularities’ in KEONICS

The government has ordered a probe into the alleged Bitcoin scam, PSI recruitment and accusations by the contractors’ association.

The state government has formed a committee to investigate alleged irregularities in the Karnataka State Electronics Development Corporation Ltd. (KEONICS). The inquiry committee will be led by retired IAS officer SD Meena. This decision comes following observations made by the Principal Accountant General during the Compliance Audit of KEONICS for the period spanning from 2018-19 to 2022-23.

Chief minister Siddaramaiah responded to complaints from contractors in 10 districts (PTI)

The committee, as per the order, will be comprised of a financial expert (a retired SAAD official) and a technical expert to support the auditing process. The order outlines several concerns raised by the Principal Accountant General’s audit team, citing 45 audit objections regarding transactions and procurement practices at KEONICS during the specified period.

“The Principal Accountant General audit team has submitted 45 audit enquiries on the transactions and procurements of goods by KEONICS for the above-mentioned period. The proposal from the Managing Director, KEONICS, has been examined. From the major findings of the Principal Accountant General audit team, it is evident that there has been lacunae and gaps like the technical specifications in the products haven’t been clearly brought out; the third-party inspection do not have due certifications of the persons who have inspected the goods; the delivery challans do not have the seal/date or seal of recipient organisation; the process of empanelment and selection of vendors for the supply of goods to various departments and organisations are not in conformity with the standard tender document prescribed by the Finance Department,” the order said

Cabinet minister Priyank Kharge, in a statement on X (formerly Twitter), accused the previous BJP government of procuring IT peripherals at significantly inflated costs, ranging from 38% to 1577%. He criticized the BJP’s reliance on religious issues to divert attention from alleged misdeeds, citing audit objections totalling over ₹430 crore between 2018-19 and 2022-23.

“There have been 45 audit objections raised by the Comptroller & Auditor General between 2018-19 & 2022-23. @BJP4Karnataka Govt procured IT peripherals at escalated costs ranging from 38% to 1577%,” Priyank Kharge said on X.

The government has ordered a probe into the alleged Bitcoin scam, Police Sub-Inspector (PSI) recruitment and the alleged accusation by the contractors’ association regarding the BJP government demanding 40% commission for clearing development projects.

Chief minister Siddaramaiah responded to complaints from contractors in 10 districts regarding delays in bill processing under the Nagarothana project during a media interaction in Davangere. He pledged to investigate any claims of state officials causing delays in bill processing under the project, which was initiated in 2016-17 with an allocation of ₹2890.00 Crore, comprising a 50% grant from the government and a 50% loan from KUIDFC.