Karnataka Cabinet sets up committee to review Covid-19 fund misuse report

Bengaluru: The Karnataka Cabinet has decided to form a high-level committee of senior officials to study and analyse a judicial inquiry report that highlights alleged misappropriation of “hundreds of crores” during the Covid-19 pandemic, when the Bharatiya Janata Party (BJP) was in power. The interim report, submitted by a commission led by former Karnataka High Court Justice John Michael Cunha, was presented to Chief Minister Siddaramaiah on August 31.

Key Findings and Formation of the Committee
The commission, formed in August 2023, has been tasked with probing alleged irregularities in the management of Covid-19 relief and expenditures from March 2020 to December 2022. In its 1,722-page interim report, the commission has reportedly uncovered misappropriation amounting to ₹1,120 crore. According to Law and Parliamentary Affairs Minister H K Patil, the report also noted the absence of key files, despite repeated instructions from the commission to produce them.

In response, the Cabinet has decided to form a committee of senior officers, including Chief Secretary Shalini Rajneesh and Additional Chief Secretary (Finance) LK Atheeq, to examine the findings. The committee will have one month to review the report and recommend further action. Minister Patil stated that the team would identify the officials responsible for dereliction of duty, based on the contents of the report.

Scope of the Inquiry and Missing Files
The commission’s investigation focused on the ₹7,223 crore spent on Covid-19 management during the specified period, with particular scrutiny of the procurement of medical equipment and drugs. The Public Accounts Committee, headed by H K Patil during the pandemic, had raised concerns about these procurements. According to sources, the missing documents, which were not presented despite multiple requests, have further complicated the inquiry process.

The Justice Cunha Commission has also been granted a six-month extension to continue its investigation, allowing the panel to thoroughly examine all remaining aspects of the Covid-19 expenditure.

Reactions and Political Fallout
The interim findings have sparked a political controversy, particularly between the ruling Congress party and the BJP. Former Health Minister Dr K Sudhakar, who oversaw Covid-19 management and is now a BJP MP, has dismissed the report as “politically-motivated” and accused the Congress government of engaging in “vendetta politics.” Sudhakar has been a prominent figure in the state’s handling of the pandemic, and during the Lok Sabha election campaign, Chief Minister Siddaramaiah had accused him of corruption, declaring that he would “go to jail 100 per cent.”

Justice Cunha Commission and Its Mandate
The Justice Cunha Commission was established to investigate the allegations of financial irregularities in the state’s Covid-19 management, specifically covering the period from the first lockdown in March 2020 until the end of December 2022. The report submitted to the Chief Minister is only the first phase of the commission’s findings, consisting of 11 parts.

The extension granted to the commission will allow it to further scrutinise the remaining expenditures and probe deeper into the irregularities uncovered. The interim report has already highlighted substantial financial discrepancies, pointing to mismanagement of funds allocated for pandemic relief measures.

Next Steps
With the submission of the report and the formation of the committee, the Karnataka government is poised to take further steps based on the recommendations. This process could lead to investigations into the conduct of officials involved in Covid-19 management during the pandemic. The government’s handling of the situation is likely to have a significant impact on state politics, particularly given the accusations of corruption and political vendetta.

Conclusion
The revelation of large-scale financial misappropriation during the Covid-19 pandemic in Karnataka has brought the issue of accountability in crisis management to the forefront. The findings of the Justice Cunha Commission will likely play a crucial role in shaping future administrative decisions and could lead to legal action against those implicated in the report. As the Cabinet waits for the senior officials’ committee to submit its analysis within the next month, the political tension between Congress and the BJP continues to intensify over the alleged irregularities.