THIRUVANANTHAPURAM: Finance Minister Thomas Isaac has termed the findings by the Comptroller and Auditor General (CAG) on the masala bonds issued by KIIFB as ‘utter nonsense’. He said the bonds were issued on the basis of NOC from RBI, which is empowered to take action in case any violation of Foreign Exchange Management Act (FEMA) is detected.
The minister’s response came a day after the CAG report, with a number of adverse remarks against KIIFB’s functioning, was tabled in the assembly. Isaac told reporters that the CAG report should be seen as an “attempt to wage a battle against the state government by the then AG with malafide intention”.
Isaac clarified that since KIIFB was a ‘body corporate’, the loans taken by it cannot be called as government loan. A specific law has been enacted regarding government guarantee for KIIFB loans. He said these loans were similar to the ones availed by various PSUs, CIAL and Kochi Metro. He said a number of states have agencies similar to KIIFB but the CAG has not passed any adverse remarks against such entities.
Isaac clarified that around 25 per cent of the loans taken by KIIFB has to be promptly repaid within a specified time-frame. The finance minister said that the CAG report amounts to political interference in the affairs of the state government during the election season. He reminded that the CAG has conducted audit on KIIFB eight times earlier. “Surely, such moves against the development initiatives of the state government will be discussed in the upcoming election. We will answer it politically,” Isaac said.
He alleged that all constitutional bodies are being denigrated and misused during the BJP rule at the Centre. The CAG report can be also seen as an example of such an interference, he added.