Major fraud unearthed in Kerala

An auditing of funds granted to local self-governments, as part of the decentralisation of power, reveals misappropriation of funds that have placed both the ruling United Democratic Front (UDF) and the opposition Left Democratic Front (LDF) in a fix.

Out of the Rs54 billion granted to these local bodies, at least a whopping Rs10 billion was misappropriated, according to the initial findings of the Local Fund Audit Department.

While most of the shady deals were struck during the five-year rule of the LDF, the UDF is also in the dock as the local bodies in their control do not lag behind.

Most of the misappropriated monies filled the pockets of politicians and benami contractors.

When the audit of Rs15 billion was completed, the fund manipulation at the panchayat level - the lowest rung of the three-tier local government system - amounted to Rs2 billion.

At the municipality level, the amount came to Rs200 million, while the amount was estimated to be several fold at municipal corporations.

The ongoing audit process is also reported to have found the rampant corruption in the state secretariat, collectorates, government offices, universities and development authorities.

The coming days would bring out more startling facts of massive swindling of public funds in the cash-strapped tiny state of Kerala, according to informed sources.

The revelations have come as a shock to the people of Kerala who rejoiced in the power decentralisation which involved the transfer of massive funds from the hands of a few ministers and top officials to grass-root local bodies.

The move was seen as the translation of Mahatma Gandhi's dream of 'Gramswaraj' into practice.

But now the audit revelations show that the well-intentioned move led to the decentralisation of corrupt administrative nerve centres to remote rural areas, the sources said.

In several cases, local bodies objected to the auditing by chasing away the auditors in a frenetic move to hide their misdeeds. The nexus among local political leaders, contractors and officials deprived the people of their welfare projects.

Also, money was squandered to buy needless machines, tools and vehicles, the sources noted.