Even Secretariat would have faced attachment if KIIFB had continued functioning in same manner: CM

THIRUVANANTHAPURAM: Chief Minister V.D. Satheesan told the Assembly that if the Kerala Infrastructure Investment Fund Board (KIIFB) had continued functioning in the same manner, even the Secretariat and Collectorates across the state would have faced attachment over mounting liabilities.

"KIIFB had borrowed money at high interest rates and invested it at lower rates. It also awarded construction contracts to the Uralungal Labour Contract Cooperative Society at rates of its choice without inviting tenders. Several people were appointed with salaries higher than that of the Chief Secretary, while multiple members of the same family were given jobs without following any clear criteria," the Chief Minister alleged.

The Chief Minister further accused KIIFB of purchasing unusable land at five times its actual value. He warned that the huge debt burden created by such practices would eventually lead to property attachment.

The additional interest liability alone stood at Rs 400 crore, he said. KIIFB had also borrowed money at high interest rates and spent Rs 203 crore on advertisements. Projects worth Rs 45,000 crore were executed at a cost of Rs 61,000 crore, he added.

Satheesan said the Comptroller and Auditor General (CAG) would audit KIIFB's activities over the past 10 years. An investigation would also be conducted into irregularities in land acquisition in Kannur.

The Chief Minister also spoke about the demands raised by Public Service Commission (PSC) rank holders staging a protest in front of the Secretariat. He said the government had held eight rounds of discussions with them and accepted four of their five demands.

The demand to reduce the student-teacher ratio in schools to 25 was not accepted, as it would create serious financial and administrative difficulties, he said.

Regarding appointments from the Kerala Administrative Service (KAS) rank list, Satheesan said only two vacancies were available. He alleged that the previous government had artificially shown 31 vacancies by sending employees on deputation.

He also blamed irregularities in the tender process under the previous government for the shortage of medicines in the state. Expired medicines were also distributed in return for commissions, he alleged.

On the Nedumbassery Mini Cooper accident case, the Chief Minister said there had been no lapses on the part of the police. However, he said that police officers who failed to act properly in the Cheranalloor case have been suspended. The Assembly passed supplementary demands for grants amounting to Rs 928 crore.