THIRUVANANTHAPURAM: Andhra rice scandal, which had shaken the first EMS Ministry, will be the model for the CPM in dealing with the present crisis evolving out of the SNC-Lavalin scandal. The Pinarayi group in the party feels that Vijayan can deal with the issue in the same way in which K.C.George, who was the Food Minister in the first EMS Ministry, had dealt with the crisis.
The statement issued by the CPM state secretariat here on Friday referred to the Andhra rice scandal and tried to equate it with the SNCLavalin scandal. The CPM mouthpiece, Deshabhimani, also raised the Andhra rice controversy in its Friday’s issue in a bid to build a strong defence for Pinarayi Vijayan.
The allegation of corruption against the purchase of rice from Andhra Pradesh was raised by T.O.Bava of the Congress in the Budget session of the First Kerala Assembly in February, 1958. He alleged that the purchase of rice from Andhra Pradesh without inviting tenders had caused a loss of Rs.16.50 lakh to the exchequer.
The EMS Government had decided to buy bulk quantities of rice from merchants T.Sriramalu and P.Suryanarayanan and Company in 1957 in a bid to solve the severe foodgrain shortage in the State. The contract was signed without inviting competitive tenders.
The allegation of corruption, the first in the history of Kerala, had shaken the Communist Party. Opposition Leader P.T.Chacko demanded the Government to conduct an inquiry into the allegations. Chief Minister EMS Namboodiripad decided to order an inquiry under the Commission of Inquires Act, 1952.
Justice P.T.Raman Nair was appointed the inquiry commission. In his report, Raman Nair pointed out that owing to the unnecessary haste in the deal, the State exchequer had lost a sum of Rs.16.50 lakh. But, he pointed out that there was no monetary gain for anyone in the Ministry from the deal.
The Government refused to divulge the details of the report even after several months. On March 6, 1959, the Opposition staged a walkout from the Assembly demanding that the Raman Nair Commission report be tabled. On March 10, EMS tabled the report in the Assembly with a dissenting note.
The Chief Minister and Communist party state secretary M.N.Govindan Nair were of the opinion that Minister K.C.George need not resign from the cabinet.
The leaders were confident that George, who was an embodiment of simplicity, would never resort to corruption. Moreover, bringing rice from Andhra Pradesh had solved the food crisis in the State. Thus George continued to be the Minister.
What the CPM now trying is to equate Pinarayi Vijayan’s action with that of George.