THIRUVANANTHAPURAM:
The newly submitted report of the ‘KIIFB Restructure Committee’ has pushed the former LDF administration and CPI(M) leadership into a corner following high-profile exposures of widespread financial irregularities, questionable land acquisitions, and appointment discrepancies.
Faced with severe political backlash, former Chief Minister Pinarayi Vijayan has reportedly reached out to former KIIFB CEO and Chief Principal Secretary K.M. Abraham, asking him to prepare a detailed point-by-point rebuttal to counter the committee’s findings.
Faced with severe political backlash, former Chief Minister Pinarayi Vijayan has reportedly reached out to former KIIFB CEO and Chief Principal Secretary K.M. Abraham, asking him to prepare a detailed point-by-point rebuttal to counter the committee’s findings.
The Political Shift & Bureaucratic Exit
​Following the UDF coalition’s victory in the Assembly elections under the leadership of V.D. Satheesan, who was sworn in on May 18, the state government constituted a dedicated committee to audit and restructure the Kerala Infrastructure Investment Fund Board (KIIFB).
Political shift following the election results in early May, K.M. Abraham resigned from his position as CEO of KIIFB and relocated to Mumbai to engage in private business ventures.
Key Highlights of the Restructure Committee Report:
​Land Valuation Frauds: Significant discrepancies and overvaluation were identified in land acquired for various infrastructure projects under KIIFB.
​Recruitment Irregularities: Arbitrary appointments and contract allotments bypassed established recruitment protocols.
​Financial Mismanagement: Misalignment between high-cost borrowings—such as Masala Bonds—and project execution, resulting in substantial financial losses to the state exchequer due to unutilized funds held in lower-yielding deposits.
The findings state that key structural and financial decisions were executed under the leadership of CEO K.M. Abraham with explicit backing from former CM Pinarayi Vijayan.
