Achuthanandan attacks Communist colleagues who supported ADB loan

New Delhi, Nov 14: Kerala Chief Minister V.S. Achuthanandan said Friday that those who had been arguing in favour of taking loans from the Asian Development Bank (ADB) for urban development projects in the state had been proved wrong in the wake of the global economic meltdown.

Taking a dig at his colleague in the cabinet, Finance Minister Thomas Issac, who had argued in support of taking the controversial ADB loan, Achuthanandan said the present crisis in the world economy has proved that their arguments were wrong.

“Our Prime Minister Manmohan Singh has agreed that globalisation is the reason for the economic crisis. He is now aware of the danger of the pro-American economic policies. Some people from our side also supported the neo-liberalised policies. Those who justified the ADB loan for the state are speechless now,” said Achuthanandan.

The Communist Party of India-Marxist veteran had vehemently opposed signing an agreement with ADB for a Rs.1.6 billion loan for the state in January 2007.

The agreement for the loan was signed by Isaac and Local Self-Government Minister Paloli Mohammed Kutty, without the knowledge of the chief minister.

The ruling CPI-M in Kerala was divided over the issue.

“The people who argued for the ADB loan are now saying that money should be borrowed from the domestic market and the people,” the chief minister, who came here to inaugurate the India International Trade Fair (IITF), told reporters.

Both Issac and Paloly are central committee member of the CPI-M and close confidantes of state secretary Pinarayi Vijayan, a rival of Achuthanandan.

When the party was in the opposition, they had fought against the then United Democratic Front (UDF) government's move to sign a loan agreement with ADB.

--IANS