The Vigilance and Anti-Corruption Bureau (VACB) on Monday indicted M. Sivasankar, former Principal Secretary to Kerala Chief Minister Pinarayi Vijayan, for accepting a sizeable sum as bribe from a builder for nudging a government construction contract in his direction.
In a court filing, the VACB stated that Mr. Sivasankar had persuaded officials of Life Mission to award the contract to construct 144 apartments for the homeless poor in Thrissur to the business person.
Also read: Sivasankar guilty of offence of money laundering, says ED
Life Mission is the Kerala government’s flagship programme for providing modern housing for the homeless.
Life Mission-Red Crescent deal
In 2019, the UAE Red Crescent had entered into a contract with Life Mission to fund the construction of 199 flats for needy families in Thrissur.
Also read: LIFE Mission has no direct dealing with Red Crescent: Pinarayi
The understanding was that Red Crescent would build the dwellings at an estimated cost of ₹20 crore and handover the apartments to Life Mission.
According to VACB, Life Mission excluded another builder to secure the contract for the businessperson “recommended” by Mr. Sivasankar.
Also read: Sivasankar cheated govt., says Minister
Investigators said UAE Red Crescent deposited an estimated ₹14 crore in the account of the builder. By his admission in the High Court, the builder stated that he had paid ₹4 crore as bribe to bag the contract.
As a set-off against the bribe, Life Mission whittled down the number of dwellings from 199 to 144, thereby causing loss to the government and undue pecuniary advantage to the builder, the VACB stated.
Gold smuggling link
The agency has also named UAE consulate-linked gold smuggling case suspects Sandeep Nair, Swapna Suresh and P. Sarith as accused in the case.
At the time of the award of the contract, Mr. Sarith and Ms. Swapna held influential posts in the UAE consulate. The VACB said Mr. Sandeep had introduced the builder to Ms. Suresh who allegedly referred him to Mr. Sivasankar. The builder wired Mr. Sandeep ₹60 lakhs from his account as a bribe. The rest he gave him as cash purportedly to pay off UAE consulate officials.
Later, Ms. Suresh told the court that the ₹36 lakhs Customs had found in her bank locker was the brokerage she received from the builder and not proceeds from gold smuggling as suspected.
Ms. Suresh held the locker jointly with a chartered accountant. The auditor told Customs that he had opened the safe along with Ms. Suresh on the direction of Mr. Sivasankar.
CBI probe
The Central Bureau of Investigation (CBI) was also probing Life Mission officials and the builder on the charge of violating the Foreign Contribution (Regulation) Act. The government has challenged the CBI’s move in the High Court.
The State has deposed that Life Mission had not accepted any foreign contribution from Red Crescent and the UAE consulate was responsible for the execution of the contract.
Swapna examined
The VACB has questioned Life Mission CEO U. V. Jose, IAS. The agency was yet to name Mr. Jose as accused. It also examined Ms. Suresh at the Special Jail for Women, Attakulangara, where she is under preventive detention under COFEPOSA.
The VACB stated that the expensive smartphone Mr. Sivasankar allegedly accepted as a gift from the builder tantamount to corruption.
ED custody
Mr. Sivasankar is currently in Enforcement Directorate (ED) custody.
The ED was investigating Mr. Sivasankar on the charge of helping Ms. Suresh stash away the proceeds of gold smuggling and legitimise the wealth in stages (layering).
In a court filing, the ED had said that Mr. Sivasankar had used the heft of his office to help Ms. Suresh regularly clear air freight addressed to the UAE consulate here without examination by the Customs.
