Opposition walks out over KIIFB issue

The Opposition walked out of the Assembly on Wednesday accusing the government of non-transparency in the investment of KIIFB (Kerala Infrastructure Investment Fund Board) funds.

The dissent came at the fag end of the discussion on the Kerala Fiscal Responsibility Amendment Bill, 2018.

Leader of the Opposition Ramesh Chennithala said the government was at a loss to explain why it sidelined reliable nationalised banks and chose shaky new generation ones to park KIIFB funds amounting to ₹1,227 crore.

He asked why the government had excluded the State Bank of India and deposited KIIFB funds in Kotak Mahindra Bank. On January 29, KIIFB also deposited large amounts in two private banks with different interest rates. Finance Minister T.M. Thomas Isaac countered the Opposition by stating the KIIFB law allowed prudent investment in entities authenticated by regulatory bodies to have the highest credit rating.

Higher interest rate

KIIFB preferred Kotak Mahindra over SBI because the former offered a higher interest rate. Moreover, the bank had fully integrated its financial transfer system with that of KIIFB.

Different banks

KIIFB did not put all its eggs in one basket. Hence, it chose different banks, sometimes on the same day, to deposit its funds.

KIIFB earned sizeable interest from its bank deposits. The money could not be left idle till the government channelised it for various projects. The Opposition could audit KIIFB operations at any time.