We've proof of DMK kickbacks: Ponnaiyan

By Our Staff Reporter

COIMBATORE, AUG. 5. The Government has evidence on hand to prove that 15 per cent kickbacks were received at various levels during the DMK rule for awarding contracts to Mumbai-based companies for construction of roads, bridges and overhead tanks, the Minister for Finance and Law, Mr. C. Ponnaiyan, asserted here today.

Though rules provided for funding these constructions only through a budgetary allocation, the previous Government bypassed this procedure to award the contracts. Without going into the details, he said there was ``adequate evidence to prove this (kickbacks)''.

Flawed policies were followed at the cost of the State's interests. Not only empty coffers but a Rs. 700-crore loan burden were left behind by the previous Government. ``Extravagance and irregularities have brought about this situation,'' Mr. Ponnaiyan said, participating in a function.

These policies resulted in a loss of Rs. 2,200 crores to the State-owned transport corporations during the last five years and also inflicted an annual recurring loss of Rs. 4,800 crores on the Tamil Nadu Electricity Board.

Attributing this to the GO 75 of the previous Government, the Minister said the order branded the products of small and tiny industries, mostly automobile components from Coimbatore, inferior and provided for purchase from other States. Consequently, the local units suffered and many people lost jobs.

When the AIADMK was in power (1991-96), certain ``social concepts'' aimed at the people's welfare cost only Rs. 15 crores to the transport corporations. But during the DMK rule, even after three fare hikes and a ``meagre'' diesel price rise, the corporations run into a huge loss.

Karnataka, Andhra Pradesh, Maharashtra, Gujarat and some other States issued GOs making purchase from the local industry mandatory for all government departments. Tamil Nadu was the only State which incurred a huge loss by adopting a wrong policy.

The AIADMK Government scrapped GO 75 as a step towards putting the small and tiny industries back on the rails. As in the other States, Government departments here would be asked to make purchases only from the local industry.

The textile industry had been ``totally jeopardised'' by the policies of the Centre. The Chief Minister, Ms. Jayalalithaa, wrote to the Union Government calling for revival measures. The agriculture sector was also affected as technology had not reached a majority of the farmers. The Government's focus for the next five years would be on increasing agricultural productivity.

In an effort at creating more self-employment opportunities to rural women and giving them an economic status, the Government planned to form 50,000 Women Self-Employment Groups. These groups would be given encouragement and facilities to market their products.

The Government found that the number of unemployed, yet capable manpower, was huge in the State. To provide a source of income to the youth the Government planned a self-employment Scheme.

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