Angered by the delay in disbursal of their outstanding dues, government contractors in the State have decided to suspend all ongoing works from Wednesday onwards.
Their stance is expected to bring development projects undertaken by the government to a standstill.
The decision comes in the wake of failure of talks held with Finance Minister K.M. Mani.
The Minister promised that bills for works undertaken by the Ports and the Water Resources departments would be cleared by April 30, but refused to accept the contractors’ demand for disbursal of dues for works completed for the roads and building wings of the Public Works Department (PWD).
The contractors, for their part, refused to accept the Minister’s assurance for disbursal of the dues of 15 months in a phased manner.
At a press conference here on Tuesday, Kerala Government Contractors Association president Varghese Kannampally said the contractors would boycott tenders and stay away from inaugural functions from April 1 in protest against the alleged apathy of the government.
He said the delay in clearing the bills of small-scale contractors was owing to the fact that the PWD funds were diverted for the Kochi Metro Rail project, the Kerala State Transport Project, and the Kerala State Construction Corporation. Such actions amounted to violation of court directives and budget norms.
He accused the Minister concerned and the department Secretary of facilitating the diversion of funds.
The issue would be raised before the Lok Ayukta, he said.
Mr. Kannampally said the contractors would hold demonstrations during the Chief Minister’s mass contact programmes.
Talks held with Finance Minister fail
Contractors allege fund diversion
