Govt diverted KIIFB funds for election campaigning: Chennithala

Thiruvananthapuram: Govt is misusing KIIFB by diverting massive funds, obtained for development activities through masala bonds at an interest rate of 9.5%, for election campaigning, alleged former opposition leader Ramesh Chennithala on Monday.

Addressing the media, Chennithala said, "Anticipating a third Pinarayi govt, the misuse of KIIFB (Kerala Infrastructure Investment Fund Board) funds for govt advertising campaigns must be immediately stopped. The upcoming UDF govt will investigate those who authorised such illegal spending of KIIFB funds. All responsible officials will be identified, and steps will be taken to recover the illegally spent money."

According to KIIFB Act passed in 2000, the funds can only be used for four purposes: investment in state's infrastructure sector, providing financial assistance for projects by public sector and other institutions for infrastructure schemes, redeeming bonds and debentures used for raising resources for KIIFB and implementing any other requirement mentioned in the scheme.

"However, from 2018 to 2021, nearly Rs 102 crore was spent from KIIFB fund on advertising and govt campaigning. In election year 2020-21 alone, about Rs 75 crore was spent on govt's election campaign," he said.

"Nearly Rs 30 crore was used to produce sponsored content in various media, including major channels in Kerala. Media ethics dictate that such content be clearly labelled as sponsored for viewers, but channels accepted more money and broadcast these as regular content, misleading the public and influencing election results. Additionally, Rs 50 crore was spent from KIIFB fund solely for ‘Keraleeyam' event," he said.

"Since the second Pinarayi govt came to power, approximately Rs 49 crore was spent on govt promotional activities in the first three fiscal years. In just the first six months of 2024, nearly Rs 5 crore was spent. Further data for the period and 2025-26 fiscal year is not available, but unofficial information suggests over Rs 150 crore being allocated for govt promotions during this time," he added.

"In 2023-24 fiscal year, a significant amount from KIIFB fund was given to private individuals. Govt and KIIFB officials are responsible to clarify and explain the purpose of these payments," said Chennithala.

"Besides advertisements and sponsored content in print and visual media, Rs 20 crore from KIIFB was spent on setting up a call centre under chief minister's name to gather public opinion on development and a public grievance cell. It is understood that this responsibility was assigned to a private entity," he said.