Press briefing of Cabinet Decision taken on 2015-07-29 |
Obtaining approval for additional allocations during the year 2015, in order to settle payments under 24 Road Projects which are being financed by the National Savings Bank under which Rs. 28.0 billion out of the loan proceeds has been used by the Road Development Authority for the payment of activities outside the scope of loans - The Road Development Authority (RDA) has been implementing a programme to rehabilitate 28 identified road projects in various parts of the country through local contractors making use of the loan facility of Rs.54.70 billion provided by the National Savings Bank. A sum of Rs.28 billion obtained under the said programme has been used for the purposes outside the activities of the relevant road rehabilitation projects and as such the RDA has been conducting an internal investigation into the matter, and it has also made a complaint to the Financial Crimes Investigation Division. Since the funds obtained for the intended purpose from the National Savings Bank has been used for other activities, the relevant road rehabilitation projects have come to a standstill and therefore, the joint proposal made by Hon. Ravi Karunayake, the Minister of Finance and Hon. Kabir Hashim, the Minister of Highways and Investment Promotion, to obtain necessary funds from the General Treasury to settle the outstanding bills related to the said projects and to resume the work of the said projects, was approved by the Cabinet. |
