KOCHI/T’PURAM: A day after he condemned the Comptroller and Auditor General’s (CAG) draft report that questioned the Kerala Infrastructure Investment Fund Board's (KIIFB) borrowings, Finance Minister Thomas Isaac on Sunday accused the BJP of using central agencies to threaten the state government and the UDF of extending support to the move.
Isaac said the BJP was trying to play the same trick that it had recently played with the help of the Enforcement Directorate (ED) and other agencies in some other cases. He said that by supporting the BJP in this effort and trying to kill the right to borrow, Opposition Leader Ramesh Chennithala was harming the state.
"The BJP is trying to play the same tricks which it has played in the state with the help of ED in this case. That plan won’t work in Kerala. They can try it somewhere in northern India, not here. This is Kerala," Isaac said.
Addressing a press conference along with UDF convenor MM Hassan in the state capital an hour later, Chennithala reiterated that Isaac does not have the right to continue in office as he has leaked the details of the CAG draft report on KIIFB even before it was tabled in the assembly or discussed by the cabinet.
BJP state chief K Surendran, meanwhile, demanded a probe by ED into the KIIFB fund utilisation citing links with the gold smuggling case. He also alleged that Isaac had closely interacted with gold smuggling accused Swapna Suresh and the former should clarify it.Isaac termed the allegations baseless.
"Everything in KIIFB is transparent. The BJP president doesn’t even know the basics of the functioning of KIIFB. That’s why he’s coming up with such childish remarks," said Isaac. He added the state government was preparing a detailed 100-page report to clarify the assets and liabilities of KIIFB.
"The report will be submitted to the CAG through the chief secretary. A copy of the same will be made available to the public. Everything is transparent in KIIFB," said Isaac. Reacting to Chennithala’s criticism of the CAG query, Isaac said the Oommen Chandy-led UDF government had taken a stance in 2006 that there was no need for a CAG audit in KIIFB.
"In a letter submitted by the then fund manager, Alok Sheel, to the principal accountant general, the then government explained that as per the KIIFB Scheme 1999, the accounts of the board shall be audited by a chartered accountant appointed by the board," he said.
The accounts audited by the chartered accountant, along with the audit report, is forwarded annually to the finance department principal secretary, state government and CAG for their comments, Isaac said.
“That was the practice. It was followed by the UDF government. Even Chennithala knows that it’s the usual practice. If he didn’t know about KIIFB, then better ask Oommen Chandy before coming up with allegations against an institution which is functioning in the right direction,” he said.
Masala Bonds
On the Masala Bonds — issued by an Indian entity or corporate to raise funds overseas — Isaac said KIIFB was not the first institution to do so. "NTPC collected B2,000 crore in August 2016 through Masala Bonds. NHAI approached the London Stock Exchange in May 2017 for issuing Masala Bonds to raise B5,000 crore. Did any CAG show the courage then to mention in their reports that it was against constitutional provisions? If they think that they can do whatever they like when it comes to Kerala and its financial issues, they are wrong," he said.