India: Cashew purchase by KSCDC, CAPEX - Mercykutty Amma brushes off corruption allegation
TNN | Oct 29, 2016, 06.13 AM IST
THIRUVANANTHAPURAM: Fisheries and cashew industry minister J Mercykutty Ammatold the assembly on Friday that the opposition member V DSatheesan had quoted wrong documents to mislead the house while levelling allegations of corruption in raw cashew purchase by the KSCDC (Kerala State Cashew Development Corporation) and CAPEX. "The opposition member d, in fact, quoted a proposal had, in fact, quoted a proposal by the KSCDC managing director for local purchase while raising the allegation. The proposal was made after repeated e-tenders, which had put forth a 11-point condition, could find just one bidder," the minister said tabling a modified reply to Satheesan's allegations. The minister also said that the government was planning to launch an SPV (special purpose vehicle) for procuring raw nuts from abroad. "The government is implementing short term and long term plans to revive the sector and reopen all factories including the private ones," she added. However, Satheesan told reporters later that the minister was not giving an explanation to his query why the KSCDC and CAPEX procured raw cashew at higher price. "I had pointed out that a government order which rejected a bid that offered raw cashew from Ivory Coast at Rs 118 per kg. The minister now has to explain why the nuts were procured at Rs 124.50 per kg after 10 days," he said.
Similarly, CAPEX also procured raw cashew from abroad for higher price after rejecting lower bids, he added. Satheesan, on Thursday , had alleged corruption to the tune of Rs 10 crore in raw cashew purchase after the LDF came to power.
Meanwhile, KSCDC chairman S Jayamohan told reporters in Kollam that an unholy nexus was trying to derail the functioning of KSCDC. "Some of the private cashew companies want the KSCDC to remaias a loss making PSU as they fear that once the corporation is back on profit, the workers will get better wages which would dampen the private players' prospects," he said.
The KSCDC, he said was trying to become a decisive player in the market. "The domestic production of cashew is now low at 10%. The government should encourage cashew farming and a slew of programmes are expected to be initiated soon," he said. Source: http://timesofindia.indiatimes.com/city/thiruvananthapuram/Cashew-purchase-by-KSCDC-CAPEX-Mercykutty-Amma-brushes-off-corruption-allegation/articleshow/55124621.cms