Senior Congress leader Cherian Philip slammed Kerala’s Infrastructure Investment Fund Board (KIIFB) on Tuesday, calling the agency a “white elephant” that has dragged the state into a deep financial crisis.
The criticism came as the Pinarayi Vijayan‑led Left government celebrated KIIFB’s 25‑year anniversary. The party has long accused the board of misusing public funds, especially after economics‑expert Thomas Issac turned it into a major investment vehicle during his time as state finance minister. Since 2016, the government has pushed KIIFB harder, touting 90,562 crore rupees of development projects.
Philip said KIIFB’s accounts have never been audited or properly presented to the Kerala Assembly, casting doubt on transparency. “The board pushes Kerala into massive debt and hides its irregularities behind a black curtain,” he said. He demanded that the government reveal the real debt KIIFB has incurred and explain how it plans to pay it back.
He also accused the state of diverting fuel and motor vehicle taxes—taxes that should go to the public exchequer—into the KIIFB fund. The chairman pointed out that the government raised money through Masala Bonds on the London Stock Exchange, a move that critics say breaks foreign-exchange rules. “KIIFB taps huge sums from bonds and loans, paying over nine percent interest,” he added.
Calling the strategy reckless, Philip warned that the state is handing future governments a huge repayment burden. “None of KIIFB’s projects bring revenue. Borrowing for development without returns is like pouring water into the sea,” he said.
Reports from the Comptroller and Auditor General (CAG) have repeatedly highlighted KIIFB’s mismanagement and its operation outside the state budget. Instead of addressing these findings, the government passed a resolution in the Assembly to defend the agency, Philip noted.
He summed up the criticism: “KIIFB has become a parallel system of borrowing and spending that is unaccountable to the people or the legislature.”
Source: ianslive
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