Kollam (Kerala), Dec 1 (NationPress) V.D. Satheesan, the Leader of the Opposition in Kerala, fiercely criticized the state government on Monday, alleging significant corruption, constitutional violations, and financial mismanagement regarding the Masala Bond dealings by the Kerala Infrastructure Investment Fund Board (KIIFB).

On the notices issued by the Enforcement Directorate (ED) to Chief Minister Pinarayi Vijayan and former Finance Minister Thomas Isaac, Satheesan described these actions as politically orchestrated to intimidate the CPI-M ahead of the upcoming local body elections.

He pointed out that the Opposition had previously raised concerns about the opaque transaction, accusing the government of borrowing Rs 2,150 crore from global markets at a high interest rate of 9.723 percent, leading to a total repayment of Rs 3,195 crore over five years—resulting in an interest burden of Rs 1,045 crore.

Satheesan remarked, “This is not standard practice. Almost half of the principal amount was lost to interest. Instead of utilizing the state’s sovereign guarantee, which could have secured funding at an interest rate of merely 1.5 percent, the government chose these exorbitant rates.”

He alleged that the agreement contravened Article 293(1) of the Constitution and involved CDPQ, a firm with ties to SNC-Lavalin.

He dismissed the widely publicized 'bell-ringing ceremony' at the London Stock Exchange, where Chief Minister Pinarayi Vijayan was presented as the first CM to ring the bell, as a “superficial publicity stunt.”

“He rang the bell not in his capacity as Chief Minister but as KIIFB Chairman. Such events are commonplace for any issuer. There is corruption behind this promotional charade,” he asserted.

Criticizing the timing of the ED notice, he indicated that similar strategies were employed during the Karuvannur Bank case before the Thrissur parliamentary elections.

“Unlike other states, central agencies in Kerala do not pursue investigations to their logical conclusions. They only issue notices to instill fear,” he claimed.

Describing the situation as a “serious matter, not to be taken lightly,” Satheesan accused Isaac of evading responsibility by asserting that the decision was solely that of the KIIFB.

“Public funds raised through taxes and cess were utilized to pay exorbitant interest rates. The state treasury has suffered significant losses,” he stated, urging that the citizens of Kerala “should not be belittled by shifting narratives.”