Nagaland Governor urged to end ‘illegal deductions’ of up to 15%

DIMAPUR — A social activist from Mokokchung has sought the urgent intervention of Nagaland Governor on the issue of ‘illegal deductions’ from contractors and suppliers in the state.

It came about two months after the Nagaland Finance Department (Revenue Branch) had said that there is no legal provision authorising deductions from contract/supply work for ministers/advisors, party funds or mobilisation funds.

Earlier, on May 3 this year, the activist had filed an RTI seeking details about the legal basis for deductions of “10% for Ministers/Advisors, 5% for party funds and 5% for mobilisation fund from contract/supply work”.

In response to the RTI, the Finance department clarified on June 12 that there are no legal provisions authorising deductions from contract or supply work for ministers/advisors and party funds.

Meanwhile, the petition to the governor, dated Aug.14, claimed that despite the Finance Department’s clarification, contractors and suppliers face unauthorised deductions of 10% by ministers/advisors and 5% for party funds, taking the cumulative deduction up to 15%.

“In some instances, these deductions would rise to as much as 40% to 45% from the work order, thereby leaving only 55% (approx.) to do the work, which affects the quality of workmanship,” read the petition.

Such unauthorised compulsory deductions compels the contractors to undercut the execution of works and use inferior materials, severely compromising the quality of their work and adversely impacting public trust in the system and impede on the state’s developmental works, the activist maintained.

The Nagaland Contractors and Suppliers’ Union had also highlighted the same grievances through the local media on May 8, 2024, it informed.

While requesting the state governor to address the issue urgently and put an immediate stop to illegal deductions, the social activist said his intervention “is indispensable to resolve this burning social problem of corruption at high places and ensure fair and transparent governance”.