CAG row: BJP alleges Kerala Govt used KIIFB as its source of income; calls for CBI probe

Amid the ongoing controversy over the Comptroller and Auditor General's report on the state-run Kerala Infrastructure Investment Fund Board, state BJP president K Surendran has now alleged that the CPI(M) government used the KIIFB fund as a “source to earn money” and called for CBI investigation into the same.  

"The state government used KIIFB as a source to earn money. KIIFB deals are not transparent so there is a chance for corruption. CAG report backs our stand now. CBI should investigate deals in KIIFB. Unless the government has done nothing wrong, then why should they fear inquiry?" Surendran asked.

The BJP leader also alleged that the ruling CPI(M) is fielding those candidates in local body elections who have alleged nexus in the gold smuggling case, which proves its connection with gold smuggling.

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The accusations came against the backdrop of Kerala Finance Minister Thomas Isaac's allegation that the Union government is using central agencies and the CAG office to sabotage developmental activities in the state.

Earlier, the United Democratic Front (UDF) also alleged that Kerala Finance Minister Thomas Isaac was deliberately trying to create controversy over the CAG report on KIIFB in order to “divert public attention” from the crisis faced by the state government over gold smuggling and money laundering cases.

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Kerala Minister defends KIIFB, attacks Opposition

On Saturday, Issac had alleged that the CAG report is an attempt to “falsely prove” that KIIFB loans are unconstitutional.

"Vested-interest parties are using the CAG for destroying Kerala's developmental projects. Congress and BJP are engaged in a big conspiracy against the developmental activities in Kerala with the support of the central government," he said.

With several projects of the state government including KFONE coming under the scanner of the central agencies including the Enforcement Directorate following the probe into the Kerala gold smuggling case, the CPI(M) sees red in the draft CAG report, prompting Isaac to cast doubts over the Centre’s intention. He alleged that certain contents of the draft report were "politically motivated".

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(With inputs from agency)