The committee recommended that the WCD Ministry should immediately take up the matter with the states and union territories.
Pinarayi hinted that KIIFB resources were necessary to improve the faculty and infrastructure facilities like labs and libraries in the higher education sector.
In response, KIIFB argues that it is an institution with a "very solid" revenue source.
The CAG pointed out the 'wrong trend' of KSSPL borrowing Rs 6,843 crore in 2019-20 outside the budget.
The flood situation was made worse by those who did not know even the basics of dam management but instead of conducting a probe, the Left government tried to protect the accused, V D Satheesan said.
The fund was part of Rs 7,012 crore Central assistance extended to LSGs that had performed well. The amount lapsed after the State government failed in handing it over to beneficiary LSGs.
The authorities had failed to issue precautionary alerts or warning when the deluge had wreaked havoc in the southern state in 2018, it said in a latest report.
If accepted, the CAG's recommendation would question the very purpose of KIIFB, and the other off-budget vehicle formed by the LDF government.
The CAG has given a report to the Kerala government and the APJ Abdul Kalam Technological University, citing that the above-mentioned 961 teachers are unqualified.
This was the third time this session the Assembly was sparing time to discuss the KIIFB-CAG issue.