Thiruvananthapuram | CPI(M) leaders on Friday criticised Chief Minister V D Satheesan and the UDF government's decision to restructure the Kerala Infrastructure Investment Fund Board (KIIFB).
Satheesan on Thursday said an expert panel headed by Sudha Pillai, which reviewed KIIFB set up by the previous LDF government, had flagged serious financial irregularities, violations of rules and huge financial liabilities.
Describing KIIFB as a "separate empire", the chief minister said the government would examine the findings of the panel's report and decide on further action.
CPI(M) MLA and former finance minister K N Balagopal told reporters that KIIFB played a crucial role in infrastructure development in the state.
"What are they saying? KIIFB should only take up profitable projects. That means they cannot make a profit by constructing hospitals and schools," he said.
Balagopal said the previous LDF government's budget had allocated Rs 5,200 crore for works on the MC Road under KIIFB.
"The move means that such development works will not be carried out," he said.
He said there was no objection to examining the legal aspects of KIIFB's functioning.
"Let there be no situation like losing a baby after bathing it frequently," he said.
Balagopal also expressed concern over whether projects implemented through KIIFB would be handed over to private companies.
"How will these matters move forward now? Will this entire thing be given to the private sector? Or will the public sector be strengthened? They need to speak about these matters," he said.
Satheesan had also alleged that KIIFB projects were unevenly distributed, with a majority concentrated in a few districts, including Kannur.
CPI(M) Kannur district secretary K K Ragesh criticised Satheesan for the remarks.
"Can someone sitting in the chief minister's chair make such a reaction just to create a narrow regional sentiment?" he asked.
"What wrong did Kannur district do? Is it wrong for Kannur district to find a place on the industrial development map of the state? How narrowly is the chief minister of Keralam thinking?" Ragesh told reporters.
He said Kannur was not the district that received the highest allocation of funds, claiming that other districts have received more.