The Union government’s instruction to the management of Kannur International Airport Limited (KIAL) to immediately facilitate the conduct of an audit by the Comptroller and Auditor General of India (CAG) has come as a slap across the face of the State government which has long contended that KIAL is a private enterprise, V.D. Satheesan, MLA, has said.
“The directive issued by the Ministry of Corporate Affairs warns of prosecution against KIAL and its management if the CAG is not allowed to conduct an audit,” Mr. Satheesan told the media here on Thursday.
This was valid ground to prosecute Chief Minister Pinarayi Vijayan and five ministers, who are on the company’s board of directors, as they prevented the CAG from auditing the airport’s finances in 2016-17 and 2017-18, he said.
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The State’s contention that it is a private company has fallen flat, following confirmation from the Ministry of Corporate Affairs that the State government has 32.86% stake and public sector enterprises have another 31.93% stake in the company. The State government, he alleged, was stalling the CAG audit to cover up the irregular appointments and rampant corruption at the airport.
It was on a complaint by the CAG after it was prevented from auditing the airport that the Ministry of Corporate Affairs issued the key instruction, he said, adding that denial of the CAG audit of Kerala Infrastructure Investment Fund Board (KIIFB)’s finances was equally wrongful.