Close on the heels of the Comptroller and Auditor General of India (CAG) rapping the Karnataka government for acute fiscal indiscipline particularly in the last three years over excessive borrowing and poor budgetary control, it has now come to light that the state has procured goods and services with Rs 4,000 crore since 2018 without floating tenders. The government has got around the Karnataka Transparency in Public Procurement (KTPP) Act which prohibits awarding contracts without calling for tenders, by misinterpreting Clause 4 (G) which provides for certain exemptions. The said clause is loosely worded and makes an exemption “in respect of specific procurements as may be notified by the government from time to time,” a provision that is repeatedly exploited to defeat the very purpose of the Act. According to details provided by Chief Minister Basavaraj Bommai to the Legislative Council recently, the works included Shivamogga and Vijayapura airports, construction of four three-star hotels and laying of roads. While the purpose of the exceptions is to meet certain exigencies like natural calamities, exemptions have been granted for the purchase of an LED screen worth Rs 88 lakh at the Chief Minister’s official residence (exact year not specified) and vehicles for elected representatives, highlighting how the provisions are blatantly abused.
This is not the first time that the government has sought to skirt the Act. Some time ago, the Act was amended to give the Karnataka Rural Infrastructure Development Corporation Ltd (KRIDL) a blanket exemption from calling for tenders for all types of works not exceeding Rs 2 crore. In the past, a certain portion of tenders with a value of Rs 50 lakh was reserved for the SC/ST community, and the increase in the ceiling had led to allegations that the actual aim was to help the big fish from the cities at the cost of small rural-based contractors. A study conducted by Bengaluru NavaNirmana Party last year had found that works worth Rs 4,721 crore were awarded by Bruhat Bengaluru Mahanagara Palike to a single contractor without calling for tenders. Often, large projects are broken down into small pieces and awarded to several contractors without tenders to escape the provisions of the KTPP Act. This naturally paves the way for corruption and favouritism.
The opaqueness in the awarding of contracts and procurement of goods and services has rendered redundant the KTPP Act the aim of which was to ensure transparency in public expenses. The government should demonstrate that it is above board by amending the Act to ensure that the exemptions provided in good faith, especially under Clause 4 (G) are not misused. Accountability and transparency, rather than culpability and opacity, should be the cornerstones of good governance.