Kannur International Airport Limited (KIAL) has clarified that the company has appointed private auditors after proper legal consultation and abiding by the Companies Act.
The clarification came in the wake of allegations raised by the media against KIAL for not allowing the Comptroller and Auditor General (CAG) to carry out an audit report.
In a press release, the company clarified that the auditing during 2017-18 was done by the auditing firm appointed by the CAG. The decision to hand over auditing to a private firm in 2018-19 was taken at the annual general body meeting after due legal consultations by the director board and major shareholders.
The decision to appoint private auditors was taken as per the Companies act.
KIAL further said Kannur airport was a private facility, and that it had been clearly mentioned in the government letter dated January 5, 2018. The release cited that the Central government has no share capital, while the State has just 35% of the share capital.
In the case of Kannur airport, neither the State or the Centre has a share capital of 51% to declare it as a government airport. The airport is hence a private airport, clarified the release.