Kottayam, Keralam Legislative Assembly Speaker Thiruvanchoor Radhakrishnan on Monday defended the UDF administration's stand on KIIFB, saying that when a new government comes to power, it might have policies different from the previous one.
Radhakrishnan was responding to reporters' queries regarding the recommendations by an expert panel to end the role of the Kerala Infrastructure Investment Fund Board as a separate fund-raising and project-financing body, calling into question the financial model that has underpinned the state's infrastructure spending.
"We cannot expect a new government to follow the steps of the previous administration. The new government will have its own policies different from that of the previous one," he said.
In its report tabled in the Keralam Assembly on Thursday, the committee, headed by retired IAS officer Sudha Pillai, said KIIFB's original rationale of raising funds without using the state's borrowing space had lost its relevance, as its borrowings are now counted against that space.
The same day Chief Minister V D Satheesan said that the panel has flagged serious financial irregularities, violations of rules and huge financial liabilities on the part of KIIFB.
Alleging that KIIFB was functioning as a 'separate empire', the CM had said the state government would examine the findings of the expert panel report and decide on further action.
He had also alleged that large amounts of KIIFB funds were used in Kannur district for acquiring huge tracts of land at exorbitant rates and most of it was lying unutilised.
Leader of Opposition in the state assembly Pinarayi Vijayan had on Sunday hit back at Satheesan and the government asking what was wrong with KIIFB funds being spent in Kannur.
"Is Kannur not in Keralam?" he had asked and alleged that the current UDF administration was trying to sabotage the development in the state.
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