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Volume 15 Issue 34
THE
An IIJNM Publication
-Page 4
WEDNESDAY, MARCH 30, 2016
State’s skin bank welcomes its first donor -Page 3
DAILY OBSERVER
Police called in after CAG slams govt Oindrila Sarkar The state government has been mauled in an audit report which cites mismanagement, fraud and corruption amounting to at least Rs143 crores . Several departments have been sent notices that fraud investigations have begun and one department, upon receiving the audit from the Comptroller & Auditor General, (CAG) called in police. The performance audit on the economic sector of Karnataka’s state government by CAG for the year 201315 reveals mismanagement and waste of public money amounting to Rs.143.34 crores. In one glaring example, almost 8crores had to be paid in compensation when a new college was built on the wrong parcel of land. Despite a police notice from the legal land owners and advice from their own legal department, the building work continued. Huge lapses in manag-
ing resources and failure in observance of fiscal norms have been reported. The top three departments in the economic sector reported to have wasted the maximum amount of money are - Revenue Dept. & Commerce & Industries Dept. (Rs.79.29 crores), Water resources Dept., minor irrigation (Rs.28.35 crores), Public works, ports & Inland water transport Dept.(Rs.23.77
crores). A Gems & Jewellery training institute was set up under the Commerce and Industries Dept. only to be discontinued after an expenditure of Rs.2.01 crores. There were no takers for the jewellery training programmes being offered. The report states that the ‘project was ill-conceived and without planning’. Land compensation had
No ‘charity’ as state power chief hikes rates Parvathi Benu The state body governing electricity supply will hike rates by 9per cent as of Friday, it was announced today. The chairman of the Karnataka Electricity Regulatory Commission (KERC), anticipating a backlash from consumers who face daily power cuts, said, “We cannot do charity”. The increase of nine per cent over the existing tariff will be implemented from 2016.With the new charges, consumers will have to pay 15 to 50 paise more per unit depending on their usage. Also there is a 6.56per cent increase for electricity charges in the Special Economic Zones (SEZs). The commission said that
the increase in electricity tariff was due to the coal cess by the government of India and the breakdown of Sharavathy Hydro Power Station, which resulted in buying power at a higher cost. The other reason was the increase in the cost of operation of transmission and distribution utilities. For domestic consumers in the urban and rural areas, tariffs for monthly consumption up to 30 units is increased by 30 paise per unit and for consumption between 31 and 100 units, the increase is of 40 paise per unit. For monthly consumption above 100 units, the increase is 50 paise per unit. Talking about the hike, MK Shankaralinge Gowda, Chairman, KERC said, “We cannot do charity. The consumers do not want the price of any commodity to increase. At the end, profit is
what matters.” He said that increasing power supply is the only way to solve Bangalore’s power crisis. “Karnataka state has the capacity to generate 5,000 MW of electricity per day,’ he said. Gowda said that the commission will introduce cross metering for solar power on 20th April and new tariff rates will be announced. He also said that the commission is not very happy with the performances of the ESCOMs in the state. Pankaj Kumar Pandey, MD, BESCOM refused to comment on the increase in the tariff and about the commission’s dissatisfaction with the company. “Even BESCOM has to cope with the increase in charges. Customers will always have complaints,” he said.
to be paid twice for the same piece of land owing to the failure of the Karnataka Industrial Areas Development Board (KIADB) which was supposed to verify the status of the land. It resulted in the erroneous payment of Rs.1.84 crore. The land in Bannikuppe village had been acquired and compensation paid between 1980-88. Despite this the KIADB paid Rs.1.84 crore for the government land which resulted in the double payment. The Department of Forest, Ecology & Environment has been making excess payments to contractors. Incorrect rates were adopted for excavation of hard rock by blasting to make elephant proof trenches which resulted in excess payments of Rs.1.72 crores to contractors. A lot of money has been wasted on public works due to improper identification of sites. The construction of residential quarters in a site disallowed by statute resulted in the project being abandoned midway which resulted in an expenditure of Rs.7.71 crore. Bangalore Development Authority (BDA) transferred
the land even though it had already been classified as a ‘playground’ whose diversion or transfer is illegal. So, the High Court ordered work to stop. The failure to redesign Reinforced Cement Concrete (RCC) works to use a higher grade steel in seven bridge works resulted in an overspend of Rs.5.38 crores. The Report states that design parameters should have been adhered to in the estimate stage which would have helped avoid this expenditure. The non-commissioning of automatic traffic counter cum weighing machines even after eight years from the commencement of the project led to an unfruitful expenditure of Rs.4.60 crore. The project took so long to get off the ground that the machines were out of warranty and so old they had to be sent for repair. They have yet to be deployed. A spokesman for the state government declined to comment on the report, adding that they were still assessing its findings. Officials in the Finance ministry refused to comment.