Monday, September 16, 2019

Kial says no to CAG audit, triggers controversy

Kannur: The decision of the Kannur International Airport Limited (Kial) authorities not to let comptroller and auditor general (CAG) to conduct an audit of the airport has led to controversy.
Though the CAG used to audit Kial accounts till 2016 and the general impression was that it was a company controlled by the government, the company claims that it is a public-private partnership firm with a 35% government stake and hence the CAG need not audit it.

“The CAG does not audit the airports that are not under the Airports Authority of India and we all know that the accounts of the airports, including Cial, are not audited by CAG, and this airport is also functioning in the same model,” said an official, who said this is a private company as per the Companies Act.

The official said that this decision was made after legal opinion was sought.

The managing director was not available to comment on the issue.

But there is something fishy about it and the civil aviation department should probe the irregularities associated with this, demanded the Congress.

“We suspect something dubious because the company which was registered as a private limited company was converted into a public limited one and auditing was held till 2016, but the CAG has been denied permission since 2017, and we suspect it was after the intervention of the chief minister,” alleged DCC president Satheesan Pacheni, who said that this was against the Companies Act.

The BJP had also earlier raised similar allegations.
16/09/19 Times of India

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