KIIFB funds used for LDF election campaign? Finance Department finds ₹140 crore spending

Thiruvananthapuram: The Kerala Finance Department has found that funds from the Kerala Infrastructure Investment Fund Board (KIIFB) were used for the political campaign of the LDF government. According to the preliminary findings, ₹240 crore was spent through KIIFB, of which ₹140 crore was allegedly used for campaigning ahead of the Assembly elections.

The government has decided to examine whether these expenditures were legally permissible under KIIFB's mandate and take appropriate action.

Just before the elections, KIIFB paid ₹50.87 lakh to send WhatsApp messages highlighting the government's achievements. It spent another ₹10.31 crore on a two-month social media campaign. An additional ₹4.41 crore was spent to ensure government-friendly media reports received priority among online readers. KIIFB also paid ₹4.27 crore for installing large hoardings along national highways.

The Finance Department noted that KIIFB's funds come from borrowings raised at high interest rates. Its preliminary assessment is that KIIFB had undertaken a specific political campaign, despite being an infrastructure financing institution.

The department primarily examined whether the government had issued any specific orders directing KIIFB to conduct the campaign. It found that no separate government orders had been issued for the campaigning.

The preliminary report submitted by the Finance Department to the Chief Minister states that KIIFB conducted political publicity for the government under the guise of promoting its projects.

The Finance Department has also found indications that KIIFB conducted election surveys and field-level data collection under the category of consultancy services. The department is yet to complete its investigation into which agencies were engaged for these activities and under which expenditure heads the payments were recorded.