Bangalore, Nov 14 (IANS): As the government and civil society groups wrangle over the proposed anti-corruption panel Lokpal, Karnataka, the first Indian state to set up a Lokayukta (ombudsman), is caught in an ugly spectacle over its role.

Various controversies have begun to dog the institution, formed in 1986 -- from appointing a new head to allegations of widespread corruption within the set up and even whether the anti-corruption watchdog should continue at all.

The Bharatiya Janata Party (BJP) government headed by D.V. Sadananda Gowda and Governor H.R. Bhardwaj, a former central minister and a staunch Congressman, are publicly sparring over the appointment of a new Lokayukta.

Even as the row over this continued, a senior police officer, K. Madhukar Shetty of the 1999 batch of the Indian Police Service (IPS), who worked in Lokayukta for over two years, has said the setup was steeped in corruption and he felt relieved to leave it.

"Madhukar Shetty's revelations show that Lokayukta has become an institution of thieves set up to catch thieves," BJP's state unit chief K.S. Eswharappa told reporters in his home town Shimoga, about 280 kms from here.

The claims were made by Shetty in an interview to a leading Kannada daily. Shetty is now on a sabbatical in the US.

Former chief minister H.D. Kumaraswamy is using Shetty's allegations to take pot shots at former Lokayukta N. Santosh Hegde, now a prominent member of Team Anna campaigning for a strong Lokpal.

"Santosh Hegde has no moral right to talk about corruption when he failed to check it in Lokayukta," said Kumaraswamy, son of former prime minister H.D. Deve Gowda.

Shetty was the superintendent of police attached to Lokayukta for over two years when Santosh Hegde was the Lokayukta. Hegde's five-year term ended Aug 2 and Shetty went on sabbatical a month earlier.

Deve Gowda, who is caught in a row over his alleged threat to another senior police officer of the Lokayukta, Monday joined Eshwarappa in questioning the usefulness of the institution.

"I welcome the statement and will raise the issue in parliament," Gowda, a Lok Sabha member from his home district Hassan, about 200 kms from here, told reporters in Mysore.

Gowda had called Jeevan Kumar Gaonkar, additional director general of police, Nov 7 and told him he was acting like a "slave" of former chief minister B.S. Yeddyurappa, who quit July 31 after Hegde sought his trial for corruption in an illegal mining scam.

Gaonkar was supervising investigation into cases against Yeddyurappa and also Deve Gowda's eldest son H.D. Balakrishna Gowda, a former Karnataka government official, who has been accused of amassing assets worth Rs.500 crore.

According to Gaonkar, Gowda also warned him that he was mistaken if he thought that Yeddyurappa would save him.

Gaonkar gave these details in a letter to the government. He was transferred out of the Lokayukta Nov 10.

His transfer has also become controversial with Bhardwaj, Hegde and the Congress party questioning the move as it came just two days after Yeddyurappa was released on bail from jail in two corruption cases.

These controversies have come at a time when the Lokaykta is headless as Hegde's successor Shivaraj V. Patil quit Sept 19 following a row over acquiring two plots from two housing societies in Bangalore.

The Sadananda Gowda government is insisting on the appointment of former Kerala high court chief justice S.R. Bannurmath, though he too is caught in a controversy over acquiring a plot meant for civic amenities - generally parks or buildings for community use.

Bhardwaj has declined to appoint Bannurmath and has suggested names of several former Supreme Court judges. He has, however, not revealed the names to the media.

Gowda is taking the stand that Bhardwaj has not formally rejected Bannurmath's appointment and hence his government will not suggest any other name.

The Congress party in the state, which had often been high critical of Hegde in the past, Monday joined the row threatening to launch agitation if any attempt is made to wind up the Lokayutka or even curtail its powers.

"We will not allow it. There is no question of winding up or even reduction in Lokayukta powers. We will launch an agitation if any attempt is made by the BJP government," state Congress chief G. Parameshwara told reporters.