Heated exchanges in assembly over CAG report; oppn UDF demands

The Kerala Assembly onWednesday witnessed heated exchanges over the CAG report onexternal borrowings by KIIFB with opposition Congress led UDFalleging wrongdoing by the LDF government and demanding theresignation of Finance Minister T M Thomas Issac beforestaging a walkout.

However, the treasury benches defended the FinanceMinister and the Kerala Infrastructure Investment Fund Board,saying that the CAG report was a 'conspiracy' against theLeft government in the state.

The UDF members staged a walkout as Speaker PSreeramakrishnan disallowed an adjournment motion sought to bemoved by the opposition over the issue after over a two hourlong discussion in the house.

The discussion began after Congress's V D Satheesan movednotice for an adjournment motion over the report, tabled inthe House on Monday and the Speaker granted permission for thediscussion on Isaac's request.

Unleashing a scathing attack on Isaac,Satheeshan said theminister's argument that the CAG was wrong in criticising theKIIFB and noted that the agency was empowered to conduct anaudit under theConstitution.

''In 2017-18, the CAG tabled a report in Parliament inwhich it had strongly criticised the Modi government.

If the agency can do so, why can't they criticise thePinarayi Vijayan government?'' Satheeshan asked.

The opposition also alleged that the KIIFB had violatedArticle 293(1) of the Constitution.

''As per Article 293(1), KIIFB cannot borrow from abroad.

The board had taken loans from abroad, violating theconstitutional norms, which has been pointed out by CAG ''Satheesan said.

Defending the borrowing, Isaac said Article 293(1) quotedby the opposition deals with borrowings of the government.

However KIIFB does not fall under the purview of this Article,and it is a body corporate, he said.

The FM alleged that certain statements made in the CAGreport were not correct.

''There was no reference to off-budget borrowings of theKIIFB in the draft CAG report. But it was added in the finalreport.

A democratically elected government has the right toreject the CAG report,'' Isaac said.

He also added that the borrowings of KIIFB was acontingent liability.

The Finance minister said the government used theopportunity to list KIIFB in the London Stock Exchange,sending out a message that an infrastructure company from asmall state like Kerala has the competency to borrow fundsfrom an institution like the LSE Leader of the Opposition Ramesh Chennithala alleged thegovernment has done wrong while borrowing funds from abroadand leaking the report before it was tabled in the Assembly.

''The minister has blatantly violated the constitutionalprovisions and we are not satisfied with his explanation. Wedemand his resignation,'' Chennithala said.

He also alleged that the KIIFB fund through Masala Bondwas not used at all, but the government had paid an interestof over Rs 300 crore.

CPI(M) legislator James Mathew sought to know why theCentre was not taking any action against the state governmentif the KIIFB borrowing was unconstitutional.

''If it is unconstitutional, won't the Centre dissolve thestate government?This a joint conspiracy by Congress and BJP.'' In the recent report, CAG had said the off-budgetborrowings through KIIFB, which mobilises funds forinfrastructure development from outside the state revenue,were not in accordance with Article 293(1) of the Constitutionand ''bypasses the limits set on Government borrowings''.

''These borrowings are not taken into the disclosurestatements in the budget documents or in the accounts andhence such borrowings do not have legislative approval,'' itstated.