Thursday, December 20, 2007

Govt. admits paying Rs. 125 mn to LTTE front firm

The Government yesterday admitted that Rs. 125 million of public funds were given to an LTTE front organisation through the Reconstruction and Development Agency (RADA), formerly headed by Tiran Alles.

Chief Government Whip Minister Jeyaraj Fernandopulle told Parliament the government would probe the matter relating to funds being given to a company headed by an LTTE operative under the ‘Jaya Lanka’ housing project headed by RADA.

The matter was discussed after the JVP questioned the government on the transaction and charged that no houses were built by the monies given.

JVP MP Anura Kumara Dissanayake who posed the question said Cabinet papers approving the funds was signed by President Mahinda Rajapaksa in his capacity as Finance Minister.

“The Minister must be responsible to the Cabinet,” Mr. Dissanayake said adding that the funds were passed to a company which had not even been accredited.

However, Minister Fernandopulle said the company was selected on the recommendation of Mr. Alles, who was chairman of RADA, and the minister approved such projects based on the trust he placed in his officials as he could not scrutinize all documents forwarded to him.

He added that although Rs. 757 million was approved for the project only Rs. 125 million had been released, with the remaining money stopped by the government after the controversy was brought to light.

UNP MP Palitha Ranga Bandara said the issue was first highlighted by MP Sripathi Sooriyarachchi to the House in April this year. He charged the government was trying to hide facts pertaining to the granting of funds to LTTE operative Emil Kanthan under the alleged Mahinda-LTTE deal.

JVP Parliamentary Group Leader Wimal Weerawansa said the government must take responsibility for the situation and demanded that the officials responsible be interdicted and an intensive investigation launched into the matter.

Minister Fernandopulle said the matter would also be referred to the Bribery Commission, but Mr. Weerawansa urged that state power be used to investigate the deal.

Mr. Weerawansa also asked why the government had not taken action on the matter until this point.

Mr. Fernandopulle said the issue was raised in the House only at this point and said an investigation would start accordingly.

(www.dailymirror.lk)

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