Millions Siphoned Out For President’s House
By Nirmala Kannangara
A staggering Rs. 18.45 million, obtained from local banks in the guise of funds going towards road construction work, had allegedly been spent by the previous regime to renovate the President’s House in Embilipitiya, The Sunday Leader learned.
The cabinet of ministers in the former Mahinda Rajapaksa regime had approved the proposal by the then Ministry of Ports and Highways to obtain an out of budget loan, in 2012, to the value of Rs.151 billion from several local banks to finance 28 road projects in the country. Accordingly, the National Savings Bank extended a Rs. 55 billion loan whilst the Bank of Ceylon provided Rs 36.6 billion, Commercial Bank Rs. 7.2 billion, DFCC Bank Rs. 1.3 billion, Hatton National Bank Rs. 28.2 billion, NDB Rs. 8.3 billion and People’s Bank Rs. 14.5 billion, amounting to Rs. 151.11 billion, in total.
Of the Rs. 55 billion loan extended by the National Savings Bank (NSB) to fund the road projects, the Road Development Authority (RDA) had received Rs. 28 billion between August and December, last year, as an advance, by submitting falsified progress reports of the projects, according to the Ministry of Highways.
Working Director, RDA, Keith Bernard, when contacted, confirmed to The Sunday Leader that Rs.18.45 million had been taken from the loans obtained from these local banks, not for any road construction project, but, to extend and renovate the President’s House in Embilipitiya.
“The local banks extended the Rs. 151.11 billion loan to fund the road projects but not to use the money to renovate Presidential Palaces. As the Rajapaksa regime were desperate to obtain money for their personal projects, and, since the then government did not have the necessary funds, the former Highways Ministry submitted falsified progress reports of the road construction projects and obtained Rs. 28 billion,” Bernard added.
According to Bernard, the contractor for the road project was R & J Engineering (Pvt) Ltd, Silvery Garden, Polonnaruwa, Tangalle, but the renovation and extension work of the Embilipitiya Presidential Palace had been carried out by the Sri Lanka Army.
“Part of the money the RDA had obtained to rehabilitate and upgrade Pelmadulla-Embilipitiya- Nonagama Road from Padalangala to Nonagama had been utilized for the president’s house renovation,” Bernard claimed.
The Sunday Leader is in possession of documents to confirm Bernard’s claim and, in a letter dated December 18, 2014, by the Executive Engineer, RDA, Tangalle to the Commanding Officer, 10th Engineering Service Regiment, Galwewa Junction, Ambalantota, it is stated how the RDA issued building materials for the proposed renovation to the president’s houses in Embilipitiya through one of their contractors, namely, R & J Engineering (Pvt) Ltd. The letter states, “This is to inform that the Road Development Authority issues building materials through one of our contractors, R & J Engineering (Pvt) Ltd. Please acknowledge the receipt of each item to make the relevant payments to the contractor”.
“This shows how the RDA Tangalle office issued building materials to the Commanding Officer 10th Engineering Service Regiment through the contractor who rehabilitated and upgraded the Pelmadulla-Embilipitiya- Nonagama Road from Padalangala to Nonagama. It was the members of this 10th Engineering Service Regiment that renovated and constructed the extension of the Embilipitiya palace. Because of these constant irregularities that were carried out by the rulers in the previous regime, road construction projects in the country came to a standstill due to lack of money,” Bernard said.