By Nirmala Kannangara
Funds allocated for road development work to the Road Development Authority (RDA) had allegedly been misused by the former government.
Working Director of the Road Development Authority (RDA), Keith Bernard said the misuse of funds obtained from local banks, that were meant for road projects in the country, has compelled some contractors to suspend work abruptly.
“The contractors were unable to complete the road projects due to lack of funds as the loans the RDA had obtained have been misused,” Bernard claimed.
According to him, the National Savings Bank extended a loan amounting to Rs. 55 billion whilst the Bank of Ceylon 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.
“The cabinet of ministers in 2012 gave the approval to the Ministry of Ports and Highways to obtain an out-of-budget loan to the value of Rs.151 billion from several banks in the country to finance 28 road projects. The National Savings Bank extended a loan to the value of Rs. 55 billion to fund the road projects and between August and December last year the RDA obtained Rs. 28 billion as an advance by submitting falsified progress reports of the projects,” Bernard said.
Bernard further said that funds released as an advance for the projects were misused by the previous regime in breach of financial regulations by lending money to the Ministry of Ports and Highways.
“From the Rs. 28 billion, Rs. 3.7 billion was advanced to the Ministry of Ports and Highways by the RDA to repay outstanding bills.
A further Rs. 18.7 billion has been utilized to repay the locally funded segment of the foreign funded projects thus emptying the RDA coffers by failing to spend on several road projects. As the contractors were unable to complete the work due to lack of funds, road projects in the country came to an abrupt standstill,” Bernard added.
When asked whether this standstill came because the government did not want to continue with the development projects the previous regime initiated, Bernard said the allegations levelled against the government by the former opposition is baseless.
“It is not fair by the former opposition to accuse the government for discontinuing the road projects without knowing the exact reason. This government had to pay for the former regime’s sins,” Bernard claimed.
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