The Hindu : State on the brink of bankruptcy: Sindhia

Online edition of India's National Newspaper
Tuesday, Jun 18, 2002

Southern States

Southern States - Karnataka

State on the brink of bankruptcy: Sindhia

By Our Staff Correspondent

CHITRADURGA JUNE 17. The Janata Dal (United) leader, P. G. R. Sindhia, has said that the State is on the verge of bankruptcy.

Addressing activists of both the factions of the Janata Dal here today, he claimed that the Government had no money even to pay salaries to its employees.

Mr. Sindhia said that the World Bank had sanctioned the Government Rs. 5,000 crore as loan. In that, it released Rs. 1,250 crore a few months ago. If it did not release the next instalment soon, the Government would have no money to pay the salaries of its staff, he said.

He alleged that the Government had breached the rules of transfers after availing the World Bank loan. It had bowed to pressure exerted by MLAs on the transfer issue, he said.

Mr. Sindhia alleged that the Government had transferred 1,200 teachers in Bangalore alone. Each of them had paid between Rs. 15,000 and Rs. 20,000 as bribe to MLAs or ministers, he charged. The JD (U) leader alleged that the Minor Irrigation Department had not undertaken any new work in the past two-and-a-half years as it owed the contractors Rs. 400 crore. Later talking to presspersons, Mr. Sindhia said that the merger of the two factions of the Janata Dal was inevitable.

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