Minister defends ADB fixing its own consultants

By Our Special Correspondent

THIRUVANANTHAPURAM, NOV. 12. The Finance Minister, Mr. K. Sankaranarayan, today strongly defended the Asian Development Bank (ADB) choosing its own consultants to advise it on matters related to its loan to the State Government.

Replying to a discussion on the Finance Bill, 2001, he said what the ADB had done was to exercise its prerogative. The fees the ADB would be paying the consultants would not come from the loan to be disbursed to the State, he said, clarifying a point raised by the CPI(M) MLA, Dr. Thomas Isaac. ``I am surprised that Dr. Thomas Isaac, who knows these things as an economist, should make such an accusation,'' he said.

Mr. Sankaranarayan said the ADB loan would be utilised in the most effective and transparent way. "We would not have been in such a predicament if the LDF Government was more careful. To cite but one example, it raised Rs. 507 crores under the Infrastructure Development Fund, but did not spend even a single rupee for the purpose intended. All our current difficulties are because of such indiscretions,'' he said.

The Finance Bill referred to the Subject Committee at the end of the discussion seeks to amend five State enactments to give effect to certain financial proposals of the Government for the current financial year.

The proposed amendments are for the Kerala Money Lenders Act, 1958; the Kerala General Sales Tax Act, 1963; the Kerala Tax on Luxuries Act, 1976; the Kerala Agricultural Income Tax Act, 1991 and the Kerala Tax on Entry of Goods into Local Areas Act, 1994.

Among other things, the Finance Bill, 2001, envisages setting up a `Settlement Commission' to help thrash out, through negotiation, nearly 27,000 cases relating to revenue due to the Government pending in the courts and tribunals. The Commission, to be chaired by a judicial officer not below the rank of a district judge, is proposed for a period of one year.

Mr. Oommen Chandy, Mr. C. K. Nanu, Mr. M. V. Govindan Master, Mr. Ishaque Kuikkal, Mr. Binoy Viswom, Mr. V. D. Satheesan, Mr. Dominique Presentation and Mr. C. P. Mohammed were among those who participated in the discussion.

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Section  : Southern States
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