Former Kerala Opposition Leader Accuses Government of Diverting KIIFB Funds for Election Campaigning
In a serious allegation that has stirred political circles in Kerala, former opposition leader Ramesh Chennithala has accused the state government of systematically misusing funds from the Kerala Infrastructure Investment Fund Board (KIIFB) for election campaigning and government advertising. The allegations center on what Chennithala describes as a blatant violation of the KIIFB Act of 2000, which strictly defines how these funds should be utilized.
Violation of KIIFB Act Provisions
Addressing the media in Thiruvananthapuram, Chennithala emphasized that according to the KIIFB Act, funds can only be used for four specific purposes: investment in the state's infrastructure sector, providing financial assistance for infrastructure projects by public sector and other institutions, redeeming bonds and debentures used for raising resources for KIIFB, and implementing any other requirement mentioned in the scheme. "The misuse of KIIFB funds for government advertising campaigns must be immediately stopped," Chennithala declared, warning that the upcoming UDF government would investigate all officials who authorized such illegal spending.
Detailed Breakdown of Alleged Misuse
Chennithala presented a detailed breakdown of the alleged fund diversion:
- From 2018 to 2021: Nearly Rs 102 crore was spent from KIIFB funds on advertising and government campaigning.
- During election year 2020-21: Approximately Rs 75 crore was specifically allocated for the government's election campaign.
- Sponsored content production: About Rs 30 crore was used to produce sponsored content in various media outlets, including major channels in Kerala. Chennithala criticized media houses for accepting payments and broadcasting this content as regular programming without proper disclosure, thereby misleading the public and potentially influencing election outcomes.
- ‘Keraleeyam' event: An additional Rs 50 crore was spent from KIIFB funds solely for organizing the ‘Keraleeyam' event.
Ongoing Pattern of Expenditure
The former opposition leader highlighted that this pattern of expenditure has continued over multiple fiscal years:
- Since the second Pinarayi government came to power, approximately Rs 49 crore was spent on government promotional activities during the first three fiscal years.
- In just the first six months of 2024, nearly Rs 5 crore was spent from KIIFB funds for similar purposes.
- While official data for the subsequent period and the 2025-26 fiscal year is not available, unofficial information suggests that over Rs 150 crore has been allocated for government promotions during this timeframe.
Additional Controversial Expenditures
Chennithala raised further concerns about specific allocations from KIIFB funds:
"In the 2023-24 fiscal year, a significant amount from the KIIFB fund was given to private individuals. Government and KIIFB officials are responsible to clarify and explain the purpose of these payments," he stated. Additionally, he revealed that Rs 20 crore from KIIFB was spent on setting up a call center under the chief minister's name to gather public opinion on development and establish a public grievance cell. This responsibility was reportedly assigned to a private entity, raising questions about transparency and accountability.
Demand for Investigation and Recovery
Chennithala concluded his allegations with a firm demand for action. He asserted that all responsible officials must be identified, and concrete steps should be taken to recover the illegally spent money. "The upcoming UDF government will investigate those who authorized such illegal spending of KIIFB funds," he promised, emphasizing the need for strict adherence to the KIIFB Act to ensure that funds raised through instruments like masala bonds at interest rates of 9.5% are used solely for legitimate infrastructure development, not political campaigning.
