Row over appointing auditor at Karuvannur Bank; move to hush up irregularities alleged

Kozhikode: A controversy has erupted over the appointment of the new auditor at the Karuvannur Cooperative Bank in Irinjalakuda.

The official, who allegedly mishandled auditing at the Kerala State Cooperative Federation Limited, was appointed as the auditor at the Karuvannur Bank.

It is alleged that such an appointment was made to hush up the multi-crore irregularities that occurred in the Karuvannur Bank, leading to the arrest of many director board members and employees of the bank.

The inquiry conducted by additional director of cooperative audit as per the directive of the chief minister found that this auditor had committed grave errors in the auditing of the funds of the SC/ST Cooperative Federation.

The inquiry report pointed out that the auditing report prepared by him was full of mistakes and he did not even follow the primary auditing stipulations.

Though it was given in the auditing report that the Federation had to get Rs.56.23 lakh, there was no mention in the report about the names of those who were responsible for such a loss. Even the bank accounts were wrongly entered in the audit report.

The inquiry report stated that the auditor had submitted the audit report directly to the auditing directorate instead of giving it to the joint director's office and this was done deliberately to avoid proper scrutiny of the audit report.

The additional director said in his inquiry report that the negligence of the auditor had led to the depletion of assets of the federation.

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