Sub-committee recommends FCID probe into Rs.4b missing from Nilwala project

By Uditha Jayasinghe

A Cabinet sub-committee appointed to assess the implementation of the Gin Nilwala Diversion project and trace Rs.4 billion released for it under the former Government has recommended that their report be handed over to the Financial Crimes Investigation Division (FCID). 

Finance Minister Ravi Karunanayake, Health Minister Dr. Rajitha Senaratne, and Megapolis and Western Development Minister Champika Ranawaka were appointed in December after questions were raised over the Rs. 4 billion released by the Treasury, ostensibly for the project, but had not been used for construction. 

The report submitted to Cabinet this week shows allocations made for the project in 2015 were just Rs. 40 million. However on 6 and 7 January, just days before the presidential elections, Rs. 4 billion was released by the Department of Treasury Operations under the Finance Ministry. 

In addition, a slew of major cash releases were also made by the Treasury. According to documents released, Ports and Highways Ministry was given Rs. 5.3 billion, Divineguma Department was given Rs. 2.2 billion, Pensions Department was given Rs. 11 billion, Irrigation and Water Management Department was given Rs. 3.5 billion and the Health Ministry was given Rs. 1.3 billion. In total, Rs. 26 billion was transferred up until 8 January 2015.

“Considering the above sub-committee recommended to handover this case to the FCID and report back to the Cabinet of Ministers and also inform them to submit an interim report within two weeks to the Cabinet if investigations are not completed,” the Cabinet paper by the three member sub-Committee said. (UJ)