The opposition UDF on Wednesday backed the CAG report, which criticised the state- owned KIIFB’s external borrowings through “Masala Bonds”, in the Kerala Assembly and alleged that Finance Minister T M Thomas Isaac was lying and misleading the House. However, the members of the ruling LDF defended the Finance Minister and Kerala Infrastructure Investment Fund Board (KIIFB) strongly, saying the CAG report was a ‘conspiracy’ against the Left government in the state.
The Assembly witnessed heated arguments between the treasury and opposition benches during a two-hour-long discussion on the adjournment motion, moved by the latter. When Congress’s V D Satheesan moved notice for an adjournment motion over the CAG report, tabled in the House on Monday, Speaker P Sreeramakrishnan granted permission for the discussion based on the request of Isaac.
Unleashing a scathing attack against Isaac, the opposition said the minister’s argument that the CAG had criticised the KIIFB was wrong and the agency was empowered to conduct constitutional audit. They also alleged that the KIIFB had violated the Article 293 of the Constitution.
“As per the Article 293, KIIFB could not borrow from abroad. The…