KMF SCAM

Scams are everywhere, now it was the turn of the Karnataka Cooperative Milk Federation (KMF). KMF was considered the only government organization which was free of scam.

The organization had approved for the purchase of large quantities of cottonseed cake (used for the manufacture of cattle feed) at an inflated price. As per the reports in the national newspaper, the KMF which requires only about 3500 MT of cottonseed cake per month procured about 28000 MT of cottonseed cake (who wanted to consume it?) from a dealer in Andhra Pradesh at a cost of Rs. 30 crore.  The purchase was made last July.

While the average price of the cottonseed cake range from Rs. 11000 to 14000 per MT, about 14600 MT was of cottonseed cake was purchased at a price of Rs. 27100 per MT (double the actual price). The federation has spent about 30 crore for the purchase during July while the annual expenditure on the procurement of the cottonseed is about 30 crore. Thanks to the directors of the KMF who have submitted a memo to the government to probe into the illegal purchases.

Hope that the concerned authorities come with a novel ways to check these kinds of scams. There should be a system where in the maximum price limit for procurement of raw materials should be set by the government authorities. Any dealings which exceed the set price limit should be considered as void. Also there should be some kind of rules and regulations formulated and implemented while recognizing the vendors.