CAG report finds KEONICS’ violations in procurement and supply of materials
The HinduThe Comptroller and Auditor General of India in its report on State Public Sector Enterprises has cited violations by Karnataka State Electronics Development Corporation Ltd. in procurement and supply of materials. In the report on SPSE’s for the period that ended in March, 2023, which was tabled in the ongoing session legislative session it was pointed out that the procuring departments and KEONICS violated the exemption graded by the State government under the Karnataka Transparency in Public Procurements Act by procuring non-IT equipment. Inflated rates It said that KEONICS procured and supplied equipment worth ₹75.81 crore to three user departments and institutions at highly inflated rates than the prevailing market price of ₹27.84 crore causing extra financial burden of ₹47.97 crore to the public exchequer. “Three hundred and forty seven purchase orders amounting to ₹240.25 crore revealed that 18 orders of four procuring entities valuing ₹154.44 croe were split into 195 purchase orders of less than ₹ 1 crore to avail 4 exemption and to entrust supply orders directly to KEONICS,” the report highlighted.
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KEONICS payment issue: Priyank releases audit document to say State incurred a loss of ₹48 crore during 2018-’23
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