Kerala - Kollam   

CITU leader alleges graft in KMML

Staff Reporter

Government intervention sought to revive the public sector undertaking

KOLLAM: CITU general secretary P.K. Gurudasan on Monday alleged that mismanagement and corruption in Kerala Minerals and Metals Limted (KMML) was taking the public sector company to its doom.

In a statement here, Mr. Gurudasan alleged that more than efforts to augment production, the company authorities seemed keen on carrying forward non- productive civil construction activities.

The CITU leader said his allegations were based on the financial report of the company.

As per the report, the profit figure during the year 2004-2005 was Rs. 39 crores, of which, profit from titanium pigment was only Rs.8 crores.

"A company that had made profit of Rs.128 crores during the year 2000-2001 had come to such a plight."

In contrast to the dipping profit, since the past couple of years, the company has registered increase in sales.

Mismanagement and corruption are the main reasons for the fall in profits, he alleged.

While the manufacturing cost of 1 tonne of titanium pigment was Rs. 68,651 in 2000-2001, last year it climbed to Rs.81,108.

But, returns from the sale of the product during the corresponding period dropped from Rs.1, 16,728 to Rs. 86,061.

He said one reason could be that the company was keener on exporting its products rather than selling them in the domestic market.

This was in spite of the fact that the domestic market offered better price than the export market.

The CITU leader said the Government should take efforts to bring down manufacturing costs and the domestic market should be given more importance over export.

The civil construction activities of the company should be brought under the purview of an audit. Stern action should be initiated against those found guilty of corruption through such audit. The director board of the company should be reconstituted by including technical experts.

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