‘CDPQ got undue favour’

Thiruvananthapuram: Opposition leader Ramesh Chennithala has alleged that four SNC-Lavalin representatives were in the state capital from March 23 to March 27 to hold talks with state government and KIIFB officials.
The Congress has been alleging that CDPQ, the Canadian company which bought the masala bonds issued by KIIFB, has close connections with SNC Lavalin, the firm which is facing corruption charges over a contract involving three hydroelectric projects in Kerala when CM Pinarayi Vijayan was the power minister.

“The government has provided masala bonds to CDPQ at a higher interest rate. This is nothing but a special consideration to the company which had helped the CPM in the past. By providing the bonds to this company at a very high interest rate, there is a clear amount of corruption involved,” Chennithala alleged.

The masala bond was purchased by CDPQ for Rs 2,150 crore at an interest rate of 9.8% which is higher than any other international agencies listed in the London Stock Exchange.

At the interest rate fixed by the KIIFB, the government will have to pay Rs 209 crore per year for 25 years to CDPQ. The interest alone would amount to Rs 5,224.50, which is a big loss for the state exchequer, he said.

“When the government itself is facing bankruptcy, what was the need for paying such huge interest,” he asked.

For Kochi Metro, the French agency AADF had given Rs 1,350 crore at an interest rate of 1.35% for 25 years. Even international financial agencies offer lesser interests than what KIIFB has fixed for this company, he said.

He also alleged that CDPQ has 20% share in the SNC-Lavalin and the director board members of both companies are the same. tnn