Karnataka govt suspends two officials of Valmiki Corporation in illegal money transfer case
Bengaluru, May 29: The State government on Wednesday suspended the Managing Director and an official of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd over allegations of an illegal money transfer.
The unauthorised transfer of Rs 88.62 crore from the corporation’s bank account came to light after an Accounts Superintendent of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, Chandrashekhar, died by suicide on Sunday evening, leaving behind a note.
He has named the corporation's Managing Director J G Padmanabh, Accounts Officer Parashuram G Durugannavar and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that minister in charge had issued oral orders for transferring the funds.
The opposition BJP has demanded the resignation of Scheduled Tribes Welfare Minister B Nagendra, following the allegations.
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Padmanabh and Durgannanavar have been suspended as they allegedly overlooked the creation of a new bank account that facilitated unauthorised transfer of funds.
They have been suspended pending inquiry on charges of dereliction of duty, negligence and violation of financial rules, their suspension orders said.
According to the government, the corporation had its savings bank account in the Vasanth Nagar branch of the Union Bank of India, but another account was opened in the MG Road branch of the bank without authorisation, and funds to the tune of Rs 187 crore was moved to the new account "illegally".
Further stating that between March 5 and 23, Rs 88.62 crore was withdrawn from the MG Road branch account by anonymous persons, the suspension orders of both officials said that they did not act on it and held them responsible.
Pointing out that the money was moved to 14 "anonymous accounts" using "forged" cheques and RTGS letters, and an unknown number was entered instead of the registered mobile number for this purpose, the government said that it was also ensured that the intimation of the transaction did not reach the corporation’s registered email address.
It was found that through 14 "virtual accounts", money went to accounts in the name of well-known IT companies and a Hyderabad-based cooperative bank, the government said, adding, "These accounts were frozen and Rs 5 crore was returned to the corporation, and efforts are on to to ensure the return of the remaining amount."
Noting that Padmanabh, despite getting to know about the illegal transfer of money to 14 different bank accounts on May 22, submitted a report to the government only on May 27, a day after Chandrashekhar died by suicide leaving a note naming officials involved in the scam, the government said.
The report was submitted after it asked for it, following allegations, and the delay on his part in reporting the matter amounted to dereliction of duty, the government added.
Durgannanavar has been found to have failed in his duty in managing the bank accounts and financial transactions of the corporation, and in bringing it to the notice of higher officials, it added.
Following Padmanabh’s suspension, the government has given additional charge to ST Welfare Department’s Joint Director K R Rajkumar as the Managing Director of the Corporation, official sources said.
Earlier in the day, Home Minister G Parameshwara said that a CID probe is on and the truth will be known from the probe.
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China raises its retaliatory tariff on the US to 84% as it vows to 'fight to the end'
Bangkok, Apr 9 (AP): China again vowed to "fight to the end" Wednesday in an escalating trade war with the US as it announced it would raise tariffs on American goods to 84% from Thursday.
Beijing also added an array of countermeasures after US President Donald Trump raised the total tariff on imports from China to 104%. Beijing said it was launching an additional suit against the US at the World Trade Organization and placed further restrictions on American companies' trade with Chinese companies.
"If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” the Ministry of Commerce wrote in a statement introducing its white paper on trade with the US.
The government declined to say whether it would negotiate with the White House, as many other countries have started doing.
On Friday, China announced a 34% tariff on all goods imported from the US, export controls on rare earths minerals, and a slew of other measures in response to Trump's “Liberation Day” tariffs. Trump then added an additional 50% tariff on goods from China, saying negotiations with them were terminated.
Wednesday's newest measures include adding 11 American companies to a so-called “unreliable entities” list that would bar Chinese companies from selling them dual-use goods. Among the companies are American Photonics, and SYNEXXUS, both of whom work with the American military.
So far, China has not appeared interested in bargaining. “If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Ministry of Foreign Affairs spokesman Lin Jian Wednesday.
The paper says that the US has not honoured the promises it made in the phase 1 trade deal concluded during Trump's first term. As an example, it said that a US law that would ban TikTok unless it is sold by its Chinese parent company violates a promise that neither would "pressure the other party to transfer technology to its own individuals."
Trump signed an order to keep TikTok running for another 75 days last week after a potential deal to sell the app to American owners was put on ice. ByteDance representatives called the White House to indicate that China would no longer approve the deal until there could be negotiations about trade and tariffs.
The paper also argued that taking into account trade in services and US companies' domestic Chinese branches, economic exchange between the two countries is “roughly in balance.”
It says that China had a trade in services deficit with the US of $26.57 billion in 2023, which is composed of industries like insurance, banking and accounting. Trump's tariffs were designed to close trade deficits with foreign countries, but those were calculated only based on trades in physical, tangible goods.
“History and facts have proven that the United States' increase in tariffs will not solve its own problems,” said the statement from the Chinese commerce ministry. "Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself."
