Kerala passes resolution against CAG’s audit report

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January 23, 2021 12:30 AM

KIIFB is a government-owned financial institution formed to mobilise funds for infrastructure development from outside the state revenue. It has also raised money from the international bond market.

The resolution rejected the remarks regarding Kerala Infrastructure Investment Fund Board (KIIFB ) from Page no 41 to 43 of the state financial audit report of the CAG.The resolution rejected the remarks regarding Kerala Infrastructure Investment Fund Board (KIIFB ) from Page no 41 to 43 of the state financial audit report of the CAG.

Kerala on Friday passed a resolution against the Comptroller and Auditor General’s (CAG) audit report that had adverse remarks against the Kerala Infrastructure Investment Fund Board (KIIFB).

KIIFB is a government-owned financial institution formed to mobilise funds for infrastructure development from outside the state revenue. It has also raised money from the international bond market.

The resolution was moved by the Left Front after CAG rapped the state government over borrowings by KIIFB. The CAG report had said that the loans were taken by bypassing the cap set on external borrowings and that was done by flouting Constitutional norms. The report also expressed concerns that the loans would finally end up as a state liability.

The resolution rejected the remarks regarding Kerala Infrastructure Investment Fund Board (KIIFB ) from Page no 41 to 43 of the state financial audit report of the CAG.

Moving the resolution under Rule 118 in the Kerala Assembly, chief minister Pinarayi Vijayan said the due procedures were not followed by CAG during auditing.

He said, “There are some parts of the final report that have not been included in the draft report. In short, the concerned department has been denied natural justice. The basic principle of natural justice is that the affected person or institution should also be heard before making a decision. The very basis of conducting a CAG audit has been violated.”

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