THIRUVANANTHAPURAM: Mounting attack on state government for its reluctance to allow the CAG to audit Kannur International Airport, Opposition Leader Ramesh Chennithala wrote to Chief Minister Pinarayi Vijayan expressing strong protest.
The Left government is afraid that the corruption and illegal appointments to KIAL would come out through the audit. The previous CAG inspection report had severely criticised the airport company for providing financial support to the LDF and demanded action. The government is worried that such corruption would come out, Ramesh said. He termed it strange that the government claim that KIAL - in which the state government and PSUs hold 85 pc stakes - is not a government company.
As per the 1956 Company Act, companies where government and PSUs together hold more than 51 pc of shares, are termed ‘deemed government companies.’ CAG audit has been made mandatory for these companies.