Stories
CPI M Leader Vasavan Accuses UDF Govt Of Attempting To Divert KIIFB Funds
- •Senior CPI M leader V N Vasavan accused the UDF government of attempting to divert KIIFB funds to address the state financial crisis.
- •Vasavan warned that dismantling or diverting funds from KIIFB would be like slaughtering a hen that lays golden eggs.
- •He noted that KIIFB has a balance of Rs 30,000 crore and credited the institution for major infrastructure and welfare projects over the past decade.
- •The remarks come amid a political row sparked by an expert panel report headed by Sudha Pillai, which flagged serious financial irregularities in KIIFB.
Key Questions Answered
Senior CPI(M) leader V N Vasavan accused the UDF government of attempting to divert KIIFB funds to address the state's financial crisis. He warned that diverting the institution's estimated Rs 30,000 crore balance would undermine KIIFB, which has financed major infrastructure, education, and healthcare projects over the past decade.
An expert panel review led by Sudha Pillai flagged serious financial irregularities, rule violations, and massive financial liabilities within KIIFB. The report stated that KIIFB's borrowing model has lost relevance because its debts count against state borrowing space and carry higher costs than direct government borrowing.
CPI(M) MLA and former finance minister K N Balagopal expressed concern that restructuring KIIFB could halt crucial public works, such as the MC Road development, and questioned whether profitable infrastructure sectors like schools and hospitals would be handed over to private entities.
