KIIFB accounts should have been audited by CAG, says Kerala High Court

KOCHI The previous State government’s decision not to entrust the audit of the Kerala Infrastructure Investment Fund Board (KIIFB) to the Comptroller and Auditor General (CAG) is more than concerning, observed the Kerala High Court. The Division Bench of Chief Justice Soumen Sen and Justice V.M. Syam Kumar stated that the previous government should have allowed the audit, especially with regard to the “enormous discrepancies” noticed in the preliminary report.

The court held that transparency must be maintained in the accounts and functioning of the KIIFB since it was funded by the State, which furnished guarantees for its borrowings. The court also expressed displeasure at KIIFB’s adverse stance against the CAG audit. Present govt.’s stance The court noted that the present government had resolved to restructure KIIFB and as per the recommendations of an expert committee, have the CAG audit the KIIFB accounts comprehensively.

The court was considering a public interest litigation by P. Anilkumar of Kasaragod, seeking a CAG audit of KIIFB accounts.