Rs. 68 m loans obtained fraudulently from SMIB

• SMIB informs COPE on loans obtained in 2017
• CID investigations underway into irregularities in granting loans
• Disciplinary action taken against staff members involved

A total of 47 individuals had obtained loans to the tune of Rs. 68 million from the State Mortgage and Investment Bank (SMIB) using forged documents in 2017. 

This information was revealed at a meeting of the Parliamentary Committee on Public Enterprises (COPE) recently.

Officials of the SMIB who appeared before the COPE said that legal action has been initiated against the culprits and the Criminal Investigation Division (CID) is still investigating the matter.

In addition, disciplinary inquiries were held and action has been taken against members of the staff who had been involved in authorising the loans.

The officials also said that two external parties related to the said matter have been arrested by the CID and one had subsequently passed away.

COPE Chairman MP Charitha Herath instructed the officials present to take measures to obtain the loan money in methodical manner.

The Committee also examined the Auditor General’s reports and current performance of the SMIB for the financial years 2017 and 2018.

Focus was directed towards increasing home loans during the said years, whilst the committee members present were of the view that the amount of loans provided for industries and agriculture should be increased.

They also pointed out that this should be considered a need of the SMIB in particular. Officials who were present at the committee meeting said that loans are already being given to small businesses with a focus on the stated.

The current vacancies at the bank were also taken into discussion. Officials said that steps have already been taken to fill several vacancies in the executive ranks, but suitable candidates are not applying for vacancies in the executive ranks and some leave shortly after receiving appointments.

If remuneration for those posts is not sufficient, the COPE Chairman instructed to make the necessary amendments for the purpose of filling the vacancies.

There was also a discussion on the presence of the SMIB in a building which has been leased for about 30 years.

Minister Sarath Weerasekera, State Minister Indika Anuruddha and MPs Susil Premajayantha, Eran Wickramaratne, Harsha de Silva and Madhura Withanage were present at this committee meeting.