Taking a cue from the inspection that revealed massive fund misappropriation in the Kottayam municipality, the State government is set to carry out similar inspections at all Grade I municipalities across Kerala.
As part of it, Local Self-Government department (LSGD) Principal Director Sreeram Sambasiva Rao has constituted inspection teams led by internal vigilance officers for each of the 21 Grade I municipalities in the State. These teams have been tasked with scrutinising 22 sets of documents, including the annual financial statements for the past five years, cheque and draft registers, advance refund registers, advance registers, and bank reconciliation registers, among others.
The teams have been scheduled to begin their work on February 20 and conclude by February 28, with comprehensive reports to be submitted within 15 days. In addition to reporting the grave violations, the teams are also required to recommend actions against the officials responsible for the lapses. The municipal secretary concerned will be responsible for making available all files and registers demanded by the team in a time-bound manner.
VACB probe in Kottayam
The order attributes the Statewide inspection to a high-level inspection by the LSGD, which revealed serious irregularities within the Kottayam municipality. Based on the findings, the State government has also announced its plans for a detailed inquiry by the Vigilance and Anti-Corruption Bureau (VACB) into the allegations of fund misappropriation.
Responding to a submission last week, LSGD Minister M.B. Rajesh revealed that the examination of reconciliation documents indicated that crores of rupees recorded as receipts through cheques over the years had not been deposited in the municipality’s bank accounts. He added that due to the absence of a maintained cheque and draft register, verifying the authenticity of the cheques was impossible. According to the Minister, more than ₹200 crore has not been credited to the relevant bank accounts.
LDF, UDF versions
The issue has sparked a political row between the ruling United Democratic Front (UDF) and the Left Democratic Front (LDF). The UDF has dismissed the allegations as clerical errors, accusing the LDF of trying to divert attention from a former municipal staff member accused of embezzling pension funds. The LDF, on the other hand, has accused the UDF of shielding corrupt officials.
K. Anilkumar, a member of the CPI(M) State committee, stated that the government’s decision to inspect all municipalities has dealt a severe blow to the UDF’s alleged attempts to cover up corruption in Kottayam. “This fraud, which had been going on for a long time, came to light only after this government unified the services under the LSGD and constituted the Principal Directorate,” he said.
Published – February 16, 2025 07:36 pm IST

