Why make a fuss over Kerala chit fund probe?
Kerala finance minister T M Thomas Isaac is a troubled man these days, hounded by both his party and the opposition. The economist-politician was first ticked off by the CPM and a few Cabinet colleagues, including the chief minister, for his open declaration of outrage at the vigilance scrutiny of Kerala State Financial Enterprises (KSFE), a public sector chit fund company under his department.
Next, he was asked by the Speaker to face the Assembly’s ethics and privileges committee after the opposition lodged a breach of privilege complaint against him for disclosing the details of a CAG audit of Kerala Infrastructure Investment Fund Board (KIIFB), another financial institution under his ministry, before the report was tabled in the House. Needless to say, the opposition wants his ouster from the Cabinet, now more than ever.
Prima facie, he appears to have crossed the line with regard to the CAG report and will have to face the consequences. On the KSFE raids, his sense of frustration, especially at not being informed, is understandable, but not his public outburst. And of course, the choice of words could have been better. More importantly, by kicking up a fuss, he may have unwittingly acted against the interests of lakhs of investors. KSFE is a well-trusted institution with an investor base of more than 33 lakh and a turnover of over Rs 40,000 crore.
Irregularities in the organisation, if any, must be brought out and its affairs straightened. The apprehension is that the political storm surrounding the raids may hamper the probe and compromise its outcome. Political conspiracy theories apart, it is also said the raids were conducted based on information about certain wrongdoings, including money laundering. An earlier CAG report had pointed out some of the malpractices, but not much was done to address them.
The latest investigation too may not yield much, especially after the controversy it created. The CPM has already made it clear it no longer wants to discuss the issue. Financial institutions that deal with public money should always be open to scrutiny. The minister, instead of cribbing about the timing, motive and protocol, should have welcomed the probe and shown willingness to address the issues that could undermine the institution.