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Thiruvananthapuram, Nov 4 (IANS) Senior Congress leader and political commentator Cheriyan Philip on Tuesday sharply criticized the Kerala Infrastructure Investment Fund Board (KIIFB), calling it a “white elephant” that has plunged the state into a deep financial crisis.
His statement comes on a day when the Pinarayi Vijayan-led Left government has given a full-page advertisement on how it has reshaped Kerala through the project, as it celebrates its silver jubilee.
Incidentally, it was during the tenure of economist-turned-then state finance minister Thomas Isaac (2006-11) when the KIIFB was given a redesign, and during his tenure and since Vijayan took charge in 2016, it was given more emphasis. Although the Congress party is criticizing it.
Philip alleged that the income and expenditure accounts of KIIFB were neither audited nor presented before the state assembly on time, raising serious questions on transparency and accountability.
“KIIFB, which has pushed Kerala into massive debt, is rife with irregularities. Its financial transactions through special purpose vehicles (SPVs) and contractual arrangements are hidden behind an iron curtain,” he said.
He further demanded that the government reveal how much loan KIIFB has actually taken and how it plans to repay it, while it claims to be implementing development projects worth Rs 90,562 crore.
“Fuel tax and motor vehicle tax, which should go to the public treasury, are being diverted to the KIIFB fund,” Philip alleged.
Criticizing the government’s decision to raise funds through Masala bonds on the London Stock Exchange, Philip said the move was in violation of foreign exchange rules.
“Despite this, no action was taken. KIIFB has raised huge sums of money through various bonds and loans from financial institutions like NABARD, for which the state has to pay more than nine per cent interest,” he said.
Calling it a reckless fiscal approach, Philip accused the ruling government of shifting the burden of repayment on future governments.
“None of the KIIFB projects is revenue generating. Borrowing in the name of development and spending without returns is like pouring water into the ocean,” he said.
Philip pointed out that several reports of the Comptroller and Auditor General (CAG) have criticized KIIFB for mismanagement and working outside the scope of the state budget.
“Instead of addressing these findings, the government responded by passing a resolution in the Assembly to defend the agency,” he said.
“KIIFB has become a parallel structure of borrowing and spending, which is not accountable to the legislature or the people,” Philip said.
–IANS
SG/DPB