CAG Exposes KEONICS Procurement Scandal

The Comptroller and Auditor General's report revealed that Karnataka State Electronics Development Corporation Limited (KEONICS) procured materials at inflated prices, causing a financial burden of Rs 47.97 crore. Violations included lack of transparency, unauthorized procurements, and fraudulent payments without thorough verification.

A damning report by the Comptroller and Auditor General (CAG) has exposed significant irregularities within the Karnataka State Electronics Development Corporation Limited (KEONICS). The report, tabled in the state government, outlines procurement malpractice resulting in a Rs 47.97 crore loss to the public exchequer.

The CAG detailed that KEONICS inflated procurement costs to a staggering Rs 75.81 crore, while market rates stood at just Rs 27.84 crore. Moreover, there was a lack of transparency in Business Associates' (BA) enrollment, bypassing government-mandated procedures.

Alarmingly, payments amounting to Rs 9.36 crore were made on the basis of fake delivery and verification documents. An audit uncovered that in 155 out of 347 cases, payments totaling Rs 85.98 crore bypassed Third Party Verification, casting shadows on the integrity of public sector procurement processes.

(With inputs from agencies.)