25 officials of KAIC face action

By T. S. Ranganna

BANGALORE, OCT. 2. The State Government has taken action against 25 officials of the Karnataka Agro Industries Corporation (KAIC) who were indicted by the Karnataka State Bureau of Public Enterprises (KSBPE) on charges of financial irregularities to the tune of Rs. 96.98 lakhs. The Corps of Detectives (CoD) is also investigating the charges.

Interestingly, the Comptroller and Auditor General of India and the Public Accounts Committee of the Legislative Assembly had conducted investigations and submitted their reports to the Government. As many as 31 officers, against whom the charges of various types of financial embezzlement were made, had faced enquiry by the KSBPE. The corporation dismissed four employees. On February 22, the KAIC Managing Director took a stand that the company could not initiate action against five of the accused officials as it did not accept the KSBPE report and as the decisions were illegal and against company rules. In this case, the KAIC had lost Rs. 6.24 lakhs in the export of flowers to Paris.

Mr. T.V.Reddy, Special Officer and former Managing Director, was one of those who benefited from this opinion. In another case involving a loss of Rs. four lakhs in the supply of food products to Karnataka Agro Corn Products, the KAIC has recommended action against another former MD. The Spices Trading Corporation has been asked to take action against Mr. A.Muniraju, Consultant, on the same charge.

A major charge related to financial irregularities to the tune of Rs. 42 lakhs allegedly involving eight officers, Mr. H.S.Narayana, General Manager, Mr. V.Shankara Setty, Accounts Assistant, Mr. K.Ramachandra Setty, Manager, Mr. K.V.Natarajan, Deputy Manager, Mr. P.Ramachandra Hegde, Deputy Chief Accounts Officer, Mr. J.N.Prasanna Kumar, Financial Advisor and Chief Accounts Officer, Mr. Mahadeva Bhatta, Mr. S.M.Rafiullah, Internal Auditor, and Mr. A.Narayana Reddy, Joint General Manager.

The CoD is inquiring into these charges even as criminal and civil cases are pending. Five officers and a former Managing Director were held responsible for the losses in giving a letter of credit for importing fertilizer worth Rs. 17.36 lakhs from Durga Bhavani Company. According to the written reply given by the Agriculture Minister, Mr. T.B.Jayachandra, to the senior Janata Dal(U) leader and MLC, Dr. M.P.Nadagouda, the officers were either retired or were no longer working with it. However, the KAIC has recommended to the Government to take action against them. These officers are: Mr. D.H.Jagadish, Financial Advisor, Mr. A.Narayana Reddy, Joint General Manager, and Mr. S.Gurappaji and Mr. H.S.Prakash, Chief General Managers.

The four officials who were dismissed are: Mr. V.S.Murthy, Junior Marketing Officer, and Mr. P.R.Jayaprakash, Junior Assistant, for irregularities in fruit processing unit and Mr. Jamaadar, Junior Assistant, and Mr. A.R.Kavi, Junior Sales Assistant, for shortage in spare parts in Hubli (Rs. 2.22 lakhs) and financial irregularity and misuse of stocks at Afzalpur Agro Centre (Rs. 3.96 lakhs).

In the case of Mr. G.Mariswamy, District Manager, and Mr. K. Vithaldas, Manager, their salaries have been brought down to the lowest in their pay scale. The enquiry into the cases of Mr. S.G.Vasandavar, District Manager, Mr. M.Nagendrappa, and Mr. Maya Gowda, Junior Sales Assistants, is on.

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