KIIFB has assets not just liabilities; routing projects through budget will set Kerala back 25 years: Thomas Isaac
Former minister Thomas Isaac defended Kerala’s KIIFB model, warning that relying on regular budgets would delay development by twenty-five years, amid a review committee reporting substantial liabilities and pending projects.
Former minister Thomas Isaac defended Kerala’s KIIFB model, warning that relying on regular budgets would delay development by twenty-five years, amid a review committee reporting substantial liabilities and pending projects.
Former minister Thomas Isaac defended Kerala’s KIIFB model, warning that relying on regular budgets would delay development by twenty-five years, amid a review committee reporting substantial liabilities and pending projects.
Kasaragod: Kerala would be pushed back by 25 years if infrastructure projects funded through the Kerala Infrastructure Investment Fund Board (KIIFB) had to depend on regular budget allocations, former finance minister Thomas Isaac said on Thursday, October 15.
“KIIFB has liabilities. It also has assets of equivalent value. Were these liabilities not incurred to carry out development activities for the future?” Isaac asked, defending the funding model he spearheaded as finance minister.
Speaking to reporters on the sidelines of the CPM’s expanded Kasaragod district committee meeting, Isaac said focusing only on KIIFB’s liabilities while ignoring the public assets created through its projects was misleading.
Inaugurating the two-day CPM meet, Politburo member A Vijayaraghavan said the attempt is being made to bring KIIFB under the Public Works Department to open new avenues for corruption.
The two leaders were speaking against the backdrop of the UDF government deciding to table in the Assembly the review report of KIIFB’s institutional and financial framework, including its borrowing practices and the possibility of restructuring its operations.
The review committee headed by former bureaucrat Sudha Pillai has identified KIIFB’s existing loan liabilities at around ₹21,000 crore, while pending projects would require more than ₹35,000 crore. Its recommendations include regulating off-budget borrowings, curbing high-interest loans and bringing KIIFB under closer oversight of the Finance Department.
In July, the Finance Department said the comprehensive review was intended to strengthen KIIFB’s long-term sustainability, improve governance and enhance its capacity to support the state’s infrastructure development.
Thomas Issac is not impressed. “If the projects are to be implemented through budgetary allocations, it would take at least 30 years. That would set Kerala back by a quarter of a century. The present attempt is aimed at destroying Kerala’s development dreams,” he alleged.
As finance minister, Isaac spearheaded KIIFB’s revamp into a major funding vehicle for infrastructure projects, enabling the state to raise money beyond conventional budgetary allocations. The model helped finance public infrastructure, including schools, hospitals, highways and bridges.
'ED stands for election duty'
Isaac also criticised the Enforcement Directorate’s actions against the former Chief Minister Pinarayi Vijayan and his family, alleging that the agency was conducting a political witch-hunt. He said the objective was not to punish anyone but to harass them.
“ED stands for ‘Election Duty’. What evidence does the ED have? There is no need to intimidate people with threats,” Isaac said.
He said the party would challenge the agency’s actions politically and legally. The ED had earlier initiated proceedings against Isaac in connection with KIIFB, which he had described as politically motivated.
To be sure, the Kerala High Court Division Bench, on Thursday, dismissed appeals filed by former Chief Minister Pinarayi Vijayan, his daughter Veena T and son-in-law and former minister P A Mohamad Riyas against the single-bench order which directed the Vigilance and Anti-Corruption Bureau (VACB) to register FIRs against them.