Kerafed processed 4,430 tonnes of poor quality copra, unfit for producing coconut oil. The oil produced using copra laced with ghee, which Marketfed collected from Sabarimala, at the Karunagapally plant was used for adulteration. Instances of procedural lapses, financial irregularities and nepotism in several deals, including the purchase of machinery for capacity augmentation of oil complexes at Karunagapally and Naduvannoor, were also unearthed.
The report recommended that Ashok Kumar Thekkan, the Director of Agriculture Department, A.S. Muhammad Sherief (Director, Projects), Shamers Philip (Director, Finance), Joseph Cherian (manager, projects) and Subhash Babu (north zone manger) shall be suspended from service. G. Suresh, the manager of the Karunagapally plant, shall be transferred, it was recommended.
The Rs.70.10-lakh loss sustained on account of establishing seven drier units shall be recovered from Mr. Thekkan, Mr. Sherief, and Mr. Philip. The Rs.58.57-lakh loss sustained due to the procurement of low quality kernel shall be recovered from Mr. Thekkan and Mr. Babu, it suggested.
