State Public Works Minister Satish Jarkiholi on Friday admitted that the practice of kickbacks, or kickbacks, still exists within the state’s management system, even as contractors warn of a financial crunch caused by unpaid government bills.
These statements come as the Karnataka State Contractors Association announced a statewide protest on March 6, accusing the government of failing to pay outstanding dues totaling $37,370 crores. Contractors say the delay has strained their finances and threatens to halt infrastructure development.
Responding to questions about allegations of kickback taking within the Public Works Department at a news conference, Jarkiholi gave a frank assessment of the persistence of the practice.
“This is there. It was there before. It is there now. It will be there in the future. It is difficult to trace exactly where it is happening. The allegations keep coming in from different sides. It was there earlier, it is there today, and it may be there tomorrow too. But it must be controlled. We must put an end to it.”
His comments sparked backlash, especially since the ruling Indian National Congress party launched an intense campaign against alleged corruption under the previous administration, accusing him of promoting the “40% commission” system in public works.
Leader of the Opposition in the state Assembly, R Ashoka, accused the ruling party of hypocrisy and said the minister’s comments amounted to an admission of wrongdoing.
“He admitted it because he is also corrupt. Corruption has been there since independence and the Congress laid its foundation. This is a shame for the Congress government. The minister has openly accepted that the party is corrupt,” Ashoka alleged.
The controversy has heightened escalating tensions between the government and contractors, who say three years of unpaid bills have pushed many companies into dire financial straits.
According to the Contractors Association, the largest share of outstanding payments — $13,000 crore – due by the main irrigation department, followed by $8,000 crores from the Public Works Department.
Other amounts include unpaid amounts $Rs 3,800 crore from the Rural Development and Panchayat Raj Department, $3000 Crores from Minor Irrigation Department $2600 crores from the Housing and Endowments Department $Rs 2,000 crore each to urban development and labor departments. Additional $Rs 1,600 crore is owed by Bruhat Bengaluru Mahanagara Palike.
Contractors say the long delay has made it difficult to continue operations and continue ongoing projects. R Manjunath, president of the association, said repeated appeals to the government had failed to produce meaningful action.
“Our memorandums have not received a satisfactory response, and the financial situation of the contractors is very bad due to non-payment of bills. Therefore, a protest has become inevitable. If the bills are not settled, all works will stop indefinitely from April,” he said.
The association called on Chief Minister Siddaramaiah to hold a formal meeting and announce a timetable for settling the dues, warning that failure to act could lead to disruption of infrastructure projects across the state.
