The Karnataka government has suspended IAS Sangappa, a 2016 batch officer, serving as managing director of Karnataka Electronics Development Corporation Ltd (KEONICS). Sangappa has been accused of demanding a bribe of Rs 30-36 crore against release of a payment of Rs 300 crore.
Sangappa was demanding 10-12% commission from vendors supplying goods to KEONICS, a PSU run by Karnataka government.
The president of KEONICS contractors' association Vasant Bangera has levelled corruption charges against Sangappa.
“He (Sangappa) justified his demand by claiming that he spent Rs 3-4 crore for the MD post and needed to provide money to officials at the top,” Bangera said.
Over 450 contractors are reportedly awaiting payment from KEONICS. Sangappa had said that the pending payment would be released by the 21st of October but the dues reportedly remain outstanding.
The KEONICS is headed by the chairman Priyank Kharge, who is also IT minister and son of Congress president Mallikarjun Kharge.
Priyank Kharge
According to KEONICS vendors association, one of the contractors also attempted suicide by consuming poison. The contractor, named Syed, is reportedly awaiting a pending payment of Rs 60 lakh. While Syed was saved, other contractors warned that they would only be left with the option to consume poison if their demand was not met.
The Karnataka government has constituted an inquiry into the entire case and has asked IT minister Kharge to take complete control of the situation.
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