Controversy over Kochi corporation’s funds deposited in private bank

Kochi: Opposition councillors have criticised the corporation authorities' decision to deposit the local body's funds in a private sector bank. According to the councillors, the corporation authorities failed to adhere to the govt's directive for local bodies to park their funds only in the state treasury.
This indicates a lack of confidence in depositing funds in the state treasury, the opposition councillors stated. "Despite the govt's directive to keep local govt funds in a special treasury savings bank account, it is illegal for the corporation to hold its funds in private bank accounts. Even when the CPM is in power in the state, the CPM mayor of Kochi corporation does not trust depositing money in the state treasury," opposition leader Antony Kureethra said.
"This raises questions about how the public can trust the govt, as there is a fear that if the money is deposited in the treasury, the govt might use the funds for other purposes. The corporation authorities can deposit the amount with public sector banks as well. However, they choose a private sector bank," he alleged.
As per norms, the corporation's own funds should be deposited in a single bank account, the opposition councillors alleged. "At the same time, the corporation authorities withdrew around Rs 10 crore from banks like Canara Bank and deposited it in a private sector bank. Now, the corporation's funds have been deposited in different banks. This is against the norms that all funds of the local body should be put in a single account," said UDF parliamentary party secretary in the corporation MG Aristotle. "However, the corporation authorities have come up with an argument that if the amount is deposited in the state treasury account, the amount cannot be withdrawn whenever the local body wants," he added.