Kerala Chief Minister vows investigation into KIIFB financial irregularities

Kerala Chief Minister V. D. Satheesan has announced that all alleged irregularities regarding the Kerala Infrastructure Investment Fund Board (KIIFB) will be investigated. Addressing the State Assembly, Satheesan claimed the board had functioned as a separate entity, bypassing the Finance Department and government controls to borrow money at high interest rates, thereby creating significant liabilities for the state.

Satheesan cited an expert committee report raising concerns over KIIFB’s operations, including land acquisition, borrowings, and expenditures. He noted that projects implemented through KIIFB allegedly resulted in excess expenditure of approximately Rs 13,103 crore compared to costs if executed directly by government departments like the Public Works or Irrigation departments.

The Chief Minister further stated that a detailed audit by the Comptroller and Auditor General (CAG) could lead to legal consequences for those involved. While acknowledging that projects worth Rs 25,000 crore have been completed and work worth Rs 31,761 crore is ongoing, he emphasized that the board lacks revenue-generating projects to meet its commitments and that the board will now function under the direct control of the Finance Department.