Government announces muti-level probe into irregularities at KMML

The state government has announced its decision to launch both vigilance and departmental investigations into the irregularities involving the Kerala Minerals and Metals Limited (KMML) at Chavara, Kollam. This revelation came from Industries Minister P Rajeeve, who was responding to starred questions in the legislative assembly posed by legislators P K Basheer, T V Ibrahim, Manjalamkuzhi Ali, and N A Nellikkunnu. The decision for a thorough probe follows reports of irregularities in the company, brought to light by Malayala Manorama.

A department-level and vigilance probe is progressing into the significant financial losses, amounting to crores of rupees, that the company sustained in the procurement of product bags for packing titanium dioxide, KMML’s primary product. These bags were purchased from an Odisha-based private company. A vigilance team recently conducted a surprise inspection at KMML, and a report on the findings is expected to be submitted soon. A report from the departmental inquiry is also in the works.

The controversy stems from a contract awarded to the Odisha-based company, bypassing the previous supplier, a German company that had been providing the product bags at a lower cost. KMML requires an average of 10 to 15 lakh bags annually. In 2020, KMML paid Rs 30 per unit for the bags, but the price surged to Rs 36 in 2021-22 and then to Rs. 65 in subsequent years.

However, in November 2023, KMML procured over 10 lakh bags from the German supplier at Rs 46 per unit, leading to a significant reduction in loss. While the price did not return to Rs 30, the savings highlighted the irregularities in the earlier dealings with the Odisha company.

Government claims no knowledge of Exalogic dealings
In a separate development, the government has claimed it has no knowledge of any business dealings between Exalogic Solutions, a company owned by Chief Minister Pinarayi Vijayan's daughter Veena Vijayan and Cochin Minerals and Rutile Limited (CMRL), a black sand mining company.

When asked about the nature of services provided by Exalogic to CMRL, the criteria for selecting Exalogic, and whether a formal contract was in place between Exalogic and CMRL, Minister Rajeeve stated that no such information was available. These questions were raised by legislators Mathew Kuzhalnadan, K. Babu, Eldhose Kunnappally, and K.K. Rema.