Kerala University-run CLAS faces scrutiny over erroneous foreign remittance

The Centre for Latin American Studies (CLAS) at Kerala University has found itself at the centre of a controversy over the alleged financial irregularities related to remunerations paid to a foreign journalist for online lectures conducted three years ago.

The issue pertains to a two-week summer school programme organised between May 15, 2023, and May 27, 2023 for undergraduate and postgraduate students from affiliated colleges and departments of various universities.

Following the programme, CLAS Director Girish Kumar R. had requested the State Bank of India (SBI) Karyavattom branch to remit an amount equivalent to ₹20,000 in U.S. Dollars from the centre’s account as honorarium for the Brazil-based journalist who delivered four online lectures.

However, the bank erroneously made a remittance of $20,000 to the Bank of America. It was only some weeks later that CLAS detected the absence of ₹16,51,500 from its bank account. With SBI failing to recall the amount, Dr. Kumar approached the RBI’s Banking Ombudsman. Notably, the journalist maintained that he had reversed the transaction on being informed of the folly, but the centre is yet to receive the amount.

Meanwhile, the bank acknowledged its mistake in an official communication, in which it claimed inability in recalling the excess money from the Bank of America despite repeated requests. While requesting CLAS to contact the beneficiary to seek refund of the excess amount, the bank also pledged steps to recover the sum from its officials who were involved in the erroneous fund transfer.

The Syndicate had constituted a sub-committee to examine the issue and recommended that the director be exempted from any disciplinary proceedings in its recent meeting. However, Vice-Chancellor in-charge Mohanan Kunnummal rejected the subcommittee’s recommendation, and also directed that those responsible for the loss must be identified. He also called for legal steps to recover the amount.

Save University Campaign Committee has petitioned the Governor to seek a Vigilance investigation on the issue. Organisation chairman R.S. Sasikumar claimed that transfer of the large sum to a foreign national without obtaining mandatory approvals from the competent authorities of the university constituted a serious lapse in financial discipline and administrative responsibility. He also alleged that the particular loss was kept undisclosed for nearly three years.

Rejecting allegations of foul play, Dr. Kumar said that the error occurred due to a serious lapse on the part of the bank. The matter has also been brought to the attention of the university authorities, and legal action is being pursued against the bank over the lapse.