Finance dept calls for disciplinary action against ex-KSSM head Dr Mohammed Asheel over COVID-19 fund fraud

The State Finance Department has called for disciplinary action against Dr Mohammed Asheel, former Executive Director of Kerala Social Security Mission (KSSM), after a report by the Finance Inspection wing unearthed irregularities in COVID-19 prevention activities executed under his leadership. 

The report lists a slew of violations in procedure during the conduct of 'Break the Chain' campaign and 'Crush the Curve' awareness programme. Both these campaigns were launched by the state government as part of measures to check the spread of disease. The finance team found out that the 'Break the Chain' campaign carried out by the KSSM was done without any government order authorising it to implement the programme. 

Besides, the administrative committee did not obtain orders from the government ratifying the expense and various activities. The Finance Inspection wing has called for comprehensive audit of sponsorship amount, expenditure and actual bills related to the project. The report noted that Asheel's explanation and replies to the findings were not satisfactory and hence disciplinary action shall be initiated against him. 

The Finance department officials noted in the report that there was no earnest effort on the part of the KSSM staff to furnish bills and vouchers related to the pandemic prevention campaign. The Finance wing began the probe based on a report by the Comptroller and Auditor General, which called the expenses by KSSM 'unauthorised, unjustifiable and require further scrutiny'.

According to the probe report of the Finance wing, an amount of ₹4.89 crore was spent for 'Break the Chain' campaign but the government didn't issue any order entrusting the conduct of the campaign with the KSSM. 

The officials also reported irregularities in the works related to the video-conference room. The KSSM spent ₹19.64 lakh to set up video-conference room measuring 300 sq.ft, however none of the activities met the required standards during the physical inspection. 

The report also cited shortcomings in the maintenance of registers for tender and stock. Anticipatory sanction and ratification were not obtained for any of the activities. 

It was also found that the KSSM disbursed huge amounts to various departments as advance without obtaining sanction from the state government. The report has flagged instances of financial indiscipline on the part of the KSSM. 

In his defence, Asheel stated that all transactions were transparent and that independent audit was done for verification. "Priority was to save lives, not for paperwork during normal times," Asheel said in his response. 

In July 2021, Asheel, who was posted on deputation as the Director of Social Security Mission, was relieved of his duties and was appointed as Medical Officer, Casualty wing, Payyanur taluk hospital. 

A report on alleged irregularities in purchase related to prevention of COVID has surfaced for the first time. The Finance department has repeatedly stated that reports were not finalised. 

In 2025, the Comptroller and Auditor General report cited two major indiscretions on the part of the first Pinarayi ministry in which K K Shylaja was the health minister. The report said that advance payment was made to a firm violating norms and personal protective equipment kits were purchased at rates that were 300% higher than the usual rates, even when the product was available at considerably lower rates.

The CAG said the "irregular procurement" had caused an additional expenditure of ₹10.23 crore.