Hyderabad: BRS Assembly deputy floor leader T. Harish Rao on Friday alleged a scam in the government giving out contracts for rural roads under the hybrid annuity model (HAM) system. He said the BRS had sounded a warning on the matter during the last Assembly sessions, stating that those submitting tenders would quote 25 per cent in excess of cost proposed by the government.
“This has now come true with tender bids submitted in response to calls by panchayat raj and roads and buildings departments. There is large-scale corruption going on,” he alleged while speaking with reporters.
Harish Rao said while the R&B department called for tenders for works totalling Rs 11,000 crore, the bids were for Rs 15,000 crore. The government had prepared plans to fund the project with 60 per cent of the required funds through loans from banks to be repaid over 15 years with interest. This will place an enormous financial burden on the government now and in the future, he said.
Demanding that the tenders for HAM road projects be cancelled, Harish Rao claimed, “the government is also gearing up to pay 10 per cent of the project cost as mobilisation advances, a system that BRS, after coming to power in 2014, cancelled. Revanth Reddy has brought it back again, opening the door for massive corruption.”
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