KOCHI: The LDF government has once again been caught on a sticky wicket a month ahead of the assembly elections as the CBI has informed the Supreme Court that Unitac Builders and Sane Ventures were proxy firms for receiving foreign funds for the LIFE Mission project.
This was stated in an affidavit submitted at the apex court on Monday to counter the state government’s appeal against the Kerala High Court decision allowing CBI to continue its probe into the Foreign Contribution (Regulation) Act (FCRA) violation in the LIFE Mission project. The affidavit was filed before a bench comprising Justice Ashok Bhushan, Justice Hemant Gupta and Justice R Subhash Reddy.
The LDF and state government have always been saying there was no corruption involved in the Wadakkanchery project and Congress MLA Anil Akkara, by giving the petition seeking a CBI probe in the High Court, has blocked the families rendered homeless in the flood from getting safe homes.
According to CBI, the MoU between LIFE Mission and UAE Red Crescent was signed on July 11, 2019, to pump in 10 million UAE dirhams (AED) (approximately Rs 20.4 crore) of which AED 7 million (Rs 14.3 crore) was agreed to be spent on constructing homes for the homeless and the remaining AED 3 million (Rs 6.1 crore) on building a health centre at Wadakkanchery. The MoU did not mention Unitac Builders and Sane Ventures as the contractors of the project.
Later, first accused Santhosh Eapen, managing partner of Unitac Builders, conspired with unidentified officials of LIFE Mission and entered into two contractual agreements on July 31, 2019 with the UAE consul-general in Thiruvananthapuram for building the apartment tower and hospital building. The fund was transferred to Unitac Builders, of which Rs 4.5 crore was given as kickbacks.
CBI: Govt avoided CAG audit by appointing proxy firm for LIFE
“The evidence reveals that Unitac is a proxy firm of LIFE Mission used for receiving foreign contribution from the UAE on behalf of the LIFE Mission project. By receiving funds in this manner, the CAG audit, government formalities and rigours of FCRA were avoided so that kickbacks could be received. If the foreign contribution of AED 10 million was received directly in the Kerala government’s account for the project from Red Crescent, it would have attracted scrutiny from the audit agencies and LIFE Mission would have been compelled to award the contract for construction through an open tender,” CBI said.
“Similarly, Sane Ventures had never entered into a contract agreement with either signatory of the MoU, which reveals that it was also a proxy firm for receiving foreign contribution. After completing the construction of the building, LIFE Mission had requested the state health department to take it over to set up the health centre. This too reveals that the foreign contribution received in Sane Ventures’ account was for the construction of the health centre as mentioned in the MoU,” CBI stated.
The CBI also pointed out that a letter signed by the CEO of LIFE Mission on August 18, 2020 and addressed to principal secretary, local self-government department, reveals that the property wherein the project is coming up is government land. A payment of `2,79,413 to KSEB for electricity connection to the LIFE tower was remitted by Wadakkanchery municipality on the instruction of LIFE Mission officials on behalf of Unitac Builders.
According to CBI, Eapen had claimed that he paid `4.48 crore and gave seven iPhones as commission to various persons. Of this, `3.8 crore was converted into US dollars and given to UAE Consulate finance head Khalid Al Shoukry and `68 lakh was transferred to the bank account of gold smuggling accused Sandeep Nair. LIFE Mission is not constituted either under any Central or state Act but as per government order No. 41/2016/LSGD and it cannot claim FCRA exemption. Besides, the state government had accorded consent to CBI to investigate the offences punishable under the FCRA, it said.
CORRUPTION & CONSPIRACY
1) LDF and state government have said there was no corruption involved in the Wadakkanchery project
2)Congress MLA Anil Akkara had moved the High Court seeking CBI probe
3)CBI says Unitac managing director Santhosh Eapen conspired with unidentified officials of LIFE Mission