In the progress report filed before the CBI Special court by the CBI Chennai unit Dy SP, V Ashok Kumar, it has been stated that Pinarayi Vijayan, the former Electricity Minister of Kerala should be named and arraigned as the ninth accused in the SNC-LAVALIN Scam.
Claus Trendl, Senior Vice President of the Canadian firm SNC-Lavalin, has been named and arraigned as the 11th accused and A. Francis, former Joint Secretary (power) as the tenth accused.
During the course of investigation, Vijayan's involvement came to light apart from the other accused, CBI quoted in its report. Vijayan, while serving as Kerala's Electricity Minister between May 1996 and October 1998, colluded with K. Mohanachandran, Principal Secretary (Power) and joined criminal conspiracy which was already hatched in 1995 by R. Sivadasan, former KSEB chairman and others in the matter of awarding supply contracts of the electrical projects to Lavalin, the CBI stated. Vijayan had led a high level delegation to Canada in October 1996 and held discussions with SNC-Lavalin and Export Development Corporation International Development agency regarding the contract and took a decision in awarding the supply contracts to Lavalin at a fixed rate basis. The main consideration in the award of the contract, which was signed by KSEB on February 10, 1997 without Government approval, was the grant offered for establishment of Malabar Cancer Centre (MCC) at Thalassery in Kannur district.
The E. Balanandan committee, appointed by the Kerala government, in its report had opined that the complete replacement of the machinery need not be carried out for the hydel projects and essential parts and machinery alone need to be replaced for which the estimated cost will be around Rs 100.5 crores. This recommendation was overlooked and the supply contract was signed within a week after Vijayan received the report. CBI said Vijayan along with the then Chief Minister, the late E. K. Nayanar and the late Dr. V. Rajagopal, former KSEB chairman, again visited Canada during June 1997 where the grant amount to establish the MCC was decided at Rs 100 crores.
The CBI stated that Vijayan along with the other accused had, 'fraudulently with dishonest intention' of showing undue favour to SNC Lavalin, entered into only a 'non binding' memorandum of understanding on April 25, 1998 for MCC instead of a legally valid memorandum of agreement which facilitated SNC-Lavalin to back out from the commitment later, thereby 'cheating the government'. K. Mohanachandran and A. Francis signed the MoU and no Government order was issued authorizing K. Mohanachandran to sign the same, but there was concurrence of Vijayan.
Lavalin, taking advantage of the non binding agreement, backed out of the commitment after spending only about Rs 12 crore through its consultants, thus not financing MCC to the tune of Rs 86.25 crore.
As part of the criminal conspiracy, Vijayan, K. Mohanachandran and A. Francis and others placed a crucial note for approval before the Countil of Ministers on March 3, 1998, after suppressing various facts, including the fact that MoU route was dispensed with the Union Government, full report of the National Hydroelectric Power Corporation was not highlighted and concurrence of Central Electricity Authority, and obtained cabinet approval. Vijayan also had close contacts with SNC-Lavalin officials and by abusing his official position had exerted 'high pressure' on the staff of Kerala State Electricity Board and thereby favoured Lavalin in their official dealings with KSEB, Central Bureau of Investigation said. The investigations revealed that the supply contract for renovation and modernization of the Panniyar, Shengulam and Pallivasal hydel projects was given to SNC Lavalin at an exorbitant rate and the per MW cost for the same was the highest. This caused a loss to the Government of Kerala with corresponding wrongful gain to Lavalin.
CBI requested an order for prosecuting Vijayan and Government took a decision not to allow the prosecution later this was taken before the governor of kerala. on June 6, 2009 the governor ordered CBI to start prosecution of Pinaray vijayan.
Later CBI filed an affidavit in court giving a clean chit to Vijayan. The CBI filed the affidavit in response to a public interest litigation seeking to know the progress in the probe and alleging that Vijayan misused his position to amass wealth.
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