As the outflow from the Consolidated Fund of the State is involved, the Kerala Infrastructure Investment Fund Board (KIIFB) is amenable for audit by the Accountant General and is being audited based on Section 14 (1) of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, according to an affidavit filed by the Office of the Accountant General in the Kerala High Court on Tuesday.
In its affidavit, the Senior Deputy Accountant General (Admn), the office of the Accountant General (G&SSA), Kerala, Thiruvananthapuram, said under Section 14 (2) of the Act, the Accountant General may, with the previous approval of the President or the Governor of a State or the administrator of a Union Territory having a legislative Assembly, as the case may be, audit all receipts and expenditure of anybody or authority where the grants or loans were not less than ₹1 crore.
In response to plea
The affidavit was filed in response to a petition challenging the constitutional validity of the issue of masala bonds to overseas investors by the State government and listing them on the London Stock Exchange.
According to the petitioner, the issue of bonds by the State government was in violation of Article 293(1).
The affidavit added that since the bonds for borrowing money were backed and guaranteed by the government, the ultimate liability and accountability had to be borne by the State government.
The affidavit added that the CAG was a constitutional authority and the reports prepared by the CAG should be laid before Parliament or appropriate legislature as per Article 151 of the Constitution.
It enables the legislature to oversee the functioning of the government and of anybody or authority, even a private body that was discharging functions for and on behalf of the government.
