9.8.11

Palmolein back to haunt Kerala CM

A designated court in Thiruvanthapuram rejected a vigilance report giving a clean chit to chief minister Oommen Chandy in the palmolein import case. The case had earlier proved to be the downfall of former chief vigilance commissioner PJ Thomas. “The report submitted by the superintendent of police, (Vigilance and Anti Corruption Bureau) is rejected, directing him to conduct further investigation into the involvement of the then finance minister in the palmolein deal and submit a report to this court within three months from today,” enquiry commissioner and special judge P K Haneefa said in his order. Chandy was the finance minister at the time of the controversial deal in the early nineties. Oil was imported from Malaysia at a much higher rate, causing a loss of Rs 2.32 crore to the state exchequer. In its report, the vigilance department said that the finance department could not be held responsible for the irregularities as the files had never reached the department. The court, however, pulled up the agency, pointing out that its report did not say anything about Chandy’s role despite the statements of witnesses recorded by the investigating officer. Soon after the court order, sources say, Chandy offered to resign but was “persuaded” to stay on by senior party members.

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