The Vigilance and Anti-Corruption Bureau (VACB) on Friday stopped short of opening a criminal inquiry against Fisheries and Cashew Minister J. Mercykutty on the suspicion of corruption in the import of raw cashew for factories run by the Kerala State Cashew Development Corporation (KSCDC) and Kerala State Cashew Workers Apex Industrial Cooperative Society (CAPEX).
In a report filed in its special court here, the agency said that a cursory inquiry, conducted at the behest of the bench, had found no “malafide intention” in the controversial import of 5,900 tonnes of raw cashew at higher than market rates ostensibly to provide employment for thousands of workers, chiefly women, in the ailing traditional sector during the run up to Onam in 2016.
Worker’s welfare and not corruption had motivated the Minister’s action, the report said. The VACB’s findings have come as reprieve for the government, which had seen the resignation of Minister E.P. Jayarajan, on the charge of nepotism in top appointments in the Industries Department.
Nevertheless, the VACB appeared to have seen some merit in the complainant’s allegation that procedural violations, opacity in tender procedures and attempts to fix bids at the Minister’s level was evident in the procurement of raw cashew.
The petitioner had alleged that percentage of defective nuts permissible in consignments was increased to favour suppliers. Vendors with expired sales tax registration were allowed to participate in the bid.
Lowest bidder was excluded citing “unspecified technical reasons” and the government facilitated cartel formation by allowing three bidders to agree on a higher than market price for supplying raw cashew. He had pegged the suspected loss to the government at an estimated ₹10.14 crore.
The agency pointedly noted that the State “take remedial measures to prevent the recurrence of the allegation.” It frowned on the questionable tender conditions and suggested that they “shall not be extended beyond the six-months period and a proper, transparent and cost-effective procurement system shall be evolved.”
The report said the government should examine the reasons why the public sector cashew processing industry was “making consistent losses” and “competent” persons should be accommodated on the board of directors of KSCDC and CAPEX.
Inquiry Commissioner and Special Judge A. Baharudeen gave the complainant’s counsel and former deputy director of prosecution, VACB, G. Saseendran a month’s time to file his objections, if any.
