Preliminary probe on against Minister

Complainant alleges loss of Rs.10.34 crore to govt. in cashew import

January 03, 2017 12:11 am | Updated 08:55 am IST - Thiruvananthapuram:

The Vigilance and Anti-Corruption Bureau (VACB) has opened a preliminary inquiry against Fisheries and Cashew Industries Minister J. Mercykutty Amma on the suspicion of large-scale corruption in the import of raw cashew for factories run by the Kerala State Cashew Development Corporation (KSCDC) and the Kerala State Cashew Workers Apex Industrial Cooperative Society (Capex).

Officials said the inquiry pertained to the controversial import of 5,900 tonnes of raw cashew to provide a few days of employment to thousands of workers, chiefly women, in the ailing traditional industry during the run-up to Onam this year.

Last week, the agency recorded the statement of P. Rahim, president of the Kerala Lawyers Congress and the de-facto complainant in the case. The VACB’s admission that a precursory inquiry was on against the Minister came barely days before an anti-corruption court here was scheduled to hear Mr. Rahim’s complaint.

Mr. Rahim alleged procedural violations, opacity in tender procedures, and attempts to fix bids at the Minister’s level in the procurement of 5,900 tonnes of raw nut by the KSCDC and Capex.

Lower bids rejected

He stated that the public sector entities had rejected tenders by two companies to procure cashew at the rate of $1,584 and $1,689 per tonne respectively. The managements, allegedly at the instance of the Minister and her husband, procured raw cashew at a higher rate of $1,858 from a third firm. Mr. Rahim pegged the suspected loss to the government at Rs.10.34 crore. Investigators said Ms. Mercykutty Amma’s husband Thulasidharan Nair, a former director board member of Capex, and managing director T.F. Xavier also came under the ambit of the inquiry. Congress Chief Whip V.D. Satheeshan had made similar allegations against the Minister in the Assembly recently. She had since denied them as politically motivated.

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