THIRUVANANTHAPURAM: The government has sacked K N Satheesh from the post of SupplyCo MD following the finding of large-scale irregularities in SupplyCo dealings.

In a bizarre settlement, a company which asked for Rs 6.91 compensation for excluding it from coffee powder distribution was given Rs 2 crore. In the probe ordered by the Food department secretary into the incident, the SupplyCo MD was found to have facilitated the fraud deal.
The strong action against Satheesh was taken on the basis of this finding.

The company in question is Wayanad-based San Spices Company, which was given the contract in 2007 and later it was banned for not keeping time.

When there was only condition for paying back the fine, the company approached Micro Small and Medium Enterprises Facilitation Council for Rs 6.91 lakh.

In 2016, it ordered to pay back about Rs 38 lakh and the SupplyCo got the stay against it from the high court. Following the vacation of the stay, the MD decided to pay Rs 2 crore even though company demanded Rs One crore, including a year’s interest.

Though the Finance department held back the file concerned, the amount was allotted as there was strong instruction from the MD. The MD had reached the settlement without informing the head office management committee, SupplyCo or legal department.

Soon after receiving information about this, Minister P Thilothaman assigned Secretary Venugopal to inquire into the irregularity. The Food department has also decided to probe all dealing done during the tenure of Satheesh.

Meanwhile, K N Satheesh said he had not done any irregularity and he was ready to face any probe.