Thiruvananthapuram, Nov 4 (NationPress) Senior Congress leader and political analyst Cherian Philip has strongly condemned the Kerala Infrastructure Investment Fund Board (KIIFB), labeling it a “white elephant” that has plunged the state into severe financial crisis.

This criticism comes on the same day that the Pinarayi Vijayan-led Left government published full-page advertisements showcasing how they have transformed Kerala through this initiative, coinciding with its silver jubilee celebrations.

Notably, it was during the tenure of the economist-turned-State Finance Minister Thomas Issac (2006-11) that KIIFB underwent significant changes, receiving further emphasis under Vijayan’s leadership since 2016. Nevertheless, the Congress party has consistently opposed it.

Philip pointed out that KIIFB’s financial records, including income and expenditures, have not been audited or presented to the state Assembly in a timely manner, raising critical concerns regarding transparency and accountability.

“KIIFB has burdened Kerala with enormous debt and is fraught with irregularities. Its financial transactions through Special Purpose Vehicles (SPVs) and contract arrangements remain concealed,” he stated.

He further urged the government to reveal the actual debt incurred by KIIFB and its repayment strategy, even while claiming to have executed development projects worth Rs 90,562 crore.

“Taxes on fuel and motor vehicles, which should benefit the public treasury, are being redirected to the KIIFB fund,” Philip alleged.

He also criticized the government's choice to raise funds via Masala Bonds on the London Stock Exchange, claiming this action breaches foreign exchange regulations.

“Despite this, no consequences have followed. KIIFB has accumulated substantial amounts through various bonds and loans from financial institutions such as NABARD, which will result in the state incurring over nine percent interest,” he noted.

Labeling it a reckless fiscal strategy, Philip accused the ruling party of shifting the repayment burden onto future administrations.

“None of KIIFB’s projects generate revenue. Borrowing under the guise of development and spending without returns is akin to pouring water into the ocean,” he remarked.

Philip highlighted that multiple reports from the Comptroller and Auditor General (CAG) have condemned KIIFB for mismanagement and operating beyond the state budget's scope.

“Instead of addressing these reports, the government chose to pass a resolution in the Assembly defending the agency,” he added.

“KIIFB has evolved into a parallel entity for borrowing and spending, evading accountability to both the legislature and the public,” concluded Philip.