TISL calls for inquiry into Rs. 600 m education fraud

Tuesday, 5 March 2013 01:50 - - {{hitsCtrl.values.hits}}

Transparency International Sri Lanka (TISL) is calling for a full investigation into the alleged large-scale corruption in the Education Employees’ Cooperative, Thrift & Credit Society Ltd.

In a letter to the Secretary to the President Lalith Weeratunga, TISL Executive Director S. Ranugge has requested him to initiate an inquiry through the Commissioner of Cooperative Development and the Presidential Investigations Unit.

The Coalition against Corruption had recently revealed that a sum of Rs. 600 million deposited in fixed deposits in State banks by the Society has gone missing.

The full text of the letter is as follows:

“The Education Employees’ Cooperative, Thrift & Credit Society Ltd. is now being managed by an interim board of management. An election has not been held since 2009.

We wish to draw your attention to the revelations made by the Coalition against Corruption on 19 February 2013 regarding corrupt and fraudulent activities of the Society.

Trade union representatives in the Coalition alleged that a sum of Rs. 600 million deposited in fixed deposits in State banks by the Society has gone missing.

It was also revealed that the management of the Society with a history of 83 years has squandered large sums of money on various deals including the purchase of land and building offices. Most transactions have been done without calling for tenders. Money spent on numerous projects has been obtained through monthly subscriptions of the members who are employees of the education sector and through interest accrued through loans granted to them.

Teacher trade unions allege that the payment of loans has been suspended. The accounts of the Society, which has assets over Rs. 7,000 million, have not been audited in recent years. In addition, the Coalition against Corruption disclosed facts and figures about numerous fraudulent activities and a copy of the media release is attached for your information. The media gave extensive coverage to the exposures.

Taking into consideration the serious allegations made and in view of the wide publicity given by the media, we urge you to initiate an investigation into the activities of the Society through the Commissioner of Cooperative Development and the Presidential Investigations Unit.”