Govt does not want CAG as statutory auditor
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Thiruvananthapuram: The Kerala government, in a letter sent to Comptroller and Auditor General, has said that the body cannot be made statutory auditor of KIIFB.
The CAG had asked permission of audit in the investment fund board as per Section 20(2). The government however conceded only for audit under Section 14(1). The government holds that this audit is comprehensive. The response to the CAG says that all transactions can be examined under the section. The Additional Chief Secretary Manoj Joshi sent the letter to the CAG.
In a letter to the government, CAG had said KIIFB will fall out of the auditor's ambit if the grant provided by the government is less than 75 percent. The government has now made it clear that the CAG will be allowed to audit the board even if the grants are less than the prescribed rate.
The opposition parties also were demanding an audit of KIIFB under Section 20(2) as a financial institution. The legislative assembly has been rocked over the issue.
