Home India Isaac scandalising CAG draft report: Chennithala

    Isaac scandalising CAG draft report: Chennithala


    Isaac scandalising CAG draft report: Chennithala

    Oppn. needs anti-corruption probe into KIIFB.

    Oppn. needs anti-corruption probe into KIIFB.

    Leader of the Opposition Ramesh Chennithala on Sunday said Kerala Facilities Investment Fund Board (KIIFB) had violated its constitutional bounds by releasing sovereign bonds to obtain from the foreign market.

    Finance Minister T.M. Thomas Isaac had actually turned his ire against the Comptroller and Auditor General (CAG) for explaining the anomaly in a draft report, he said.

    The CAG had said that borrowings by the KIIFB ran versus the grain of Post 293 (1) of the Constitution. It related to ensure offered by State federal governments to lenders for instruments of financial obligation provided versus the consolidated fund.

    Mr. Chennithala said the CAG had mentioned that the State could mobilise funds from the domestic market by drifting sovereign bonds. Nevertheless, it might not provide “masala bonds” outside India to raise funds from foreign investors.

    For one, the government had offered instruments of debt amounting to 2,150 crore to CDPQ, a subsidiary of SNC-Lavalin.

    ( The CBI had actually accused the Canadian company of paying a big allurement to bag the contract to renovate 3 hydel tasks in the State during the 1996-97 duration. Chief Minister Pinarayi Vijayan was Power Minister at the time.)

    Mr. Chennithala said CDPQ bought the masala bonds based on a private understanding and for an exaggerated interest rate of 9.72% when the KIFFB listed them at the London Stock Market (LSE).

    The interest to be paid to CDPQ by the federal government was extortionate and unheard off, he said. The federal government had accorded the foreign entity undue budgeting advantage and matching loss to the public exchequer. Mr. Chennithala required an anti-corruption examination into the KIIFB.

    Mr. Chennithala accused Dr. Isaac of scandalising the “draft report” sent by the CAG. He said Dr. Isaac had sought to divert public attention from the scandals pestering the government by targeting the constitutional workplace of the CAG.

    The federal government had allowed only a partial audit of the KIIFB accounts. It had denied the CAG consent to carry out an extensive audit. Mr. Chennithala had actually moved the court to enable the CAG to examine the monetary statements of the Kannur airport.

    Dr. Isaac feared an audit of the KIIFB by the CAG. The federal government had numerous shenanigans to hide from the general public. The Financing Minister was stressed that the skeletons in the closet would come tumbling out if the CAG took a look at the accounts closely, Mr. Chennithala stated.

    ( the heading, this story has actually not been published by Crucial India News personnel and is published from a syndicated feed.).


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