A three-member committee appointed to look into the alleged financial fraud in the Central Cultural Fund (CCF) in its report has noted that about Rs. 11 billion (Rs. 11,059 million) has been defrauded from the institution between 2016 and 2019.
The committee appointed by Prime Minister Mahinda Rajapaksa to probe irregularities and financial misappropriations in the CCF handed over its 142- page final report to the Prime Minister at Temple Trees Tuesday (28).
The three-member committee was headed by retired High Court Judge Gamini Sarath Edirisinghe and former Ministry Secretary Gotabhaya Jayaratne and Senior Counsel Harigupta Rohanadheera were the other members.
According to the report, Rs. 2.608 billion has been misappropriated due to withdrawal of fixed deposits without proper approval and loss of deposit interest income while Rs. 3.06 billion has been misappropriated from recruitment for posts exceeding the approved limits of the recruitment procedure and paying salaries and allowances. Another Rs. 2.316 billion has been spent on providing cultural and religious assistance and grants without proper approval.
Rs. 753 million has been paid for the construction of Sisu Daham Sevana Dhamma School buildings without legal approval, while a loss of Rs. 48 million has been incurred in converting the dollar revenue of the Fund’s tourist tickets into rupees.
The committee report states that Rs. 2.266 billion has been spent on other illegal activities without paying the due contribution to the Archaeological Trust and that a loss of Rs. 8 million has been incurred due to the transfer of property of the Ape Gama project.
Meanwhile, Rs. 400 million has been illegally withdrawn from the fixed deposit of the Fund during the last Presidential Election period. In addition, money of the CCF dollar account has also been misused between 2016 and 2019, the report said.
The report also said that the Central Cultural Fund had opened 25 current accounts without the approval of the Treasury, and that there were errors in the purchase of equipment in violation of monetary regulations and accounting for money in foreign projects.
Also it has been revealed by the committee that documents pertaining to some financial transactions including the purchase of equipment have been prepared subsequently to the transaction, which is a breach of financial regulations.
The Prime Minister’s Office said according to the report, a meeting of the Board of Directors was convened on November 15 last year to cover the irregular expenditure incurred in the year 2019. Although five members of the Board of Directors were present, the signatures of the non-participating members have also been obtained.
In this situation, the committee has recommended that the signatures of the members be verified as there is an issue regarding the legitimacy of the board meeting, the Prime Minister’s Office said in a statement.
Finally the committee has recommended legal action against those who are responsible for the financial and the administrative irregularities and the misuse of funds, a press release issued by the Prime Minister’s office said.
Courtesy: Colombo Page
