KOCHI: Alleging widespread irregularities in the state government’s attempt to avoid Comptroller and Auditor General’s (CAG) audit in Kerala Infrastructure Investment Fund Board (KIIFB) and Kannur International Airport Ltd (KIAL), V D Satheesan, MLA, demanded an in-depth audit into the financial transactions of both institutions.
“The state government is trying to hide the financial irregularities in KIAL and KIIFB by preventing the CAG audit into the decisions taken by both institutions. KIAL has 16 per cent private share whereas KIIFB is funded by the Motor Vehicle Department, petroleum cess, loans and bonds taken from different agencies. The state government offers a sovereign guarantee to every bonds and loan taken by KIIFB. As CAG will look into the legalities of financial transactions, the government fears the administrative irregularities will be brought to light,” Satheesan told media persons here on Friday.
The public accounts committee chairman also alleged that the state government had continuously ignored the requests from CAG for auditing the institutions. “Despite receiving several requests from CAG, KIAL director board has decided not to allow the audits. Their letters to the Chief Minister and the Chief Secretary have also not yielded any results. Surprisingly, CAG audit at KIAL in 2015-16 found many irregularities and decided to continue with internal audit.
The government prevented the audit by saying that KIAL was a private firm. In reality, it has only 16 per cent private shares and the government itself holds the majority of shares. Under these circumstances, an in-depth CAG audit is needed in both KIAL and KIIFB,” said Satheesan. The MLA also added that avoiding the audit in two major state institution will set the wrong precedent.