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LLDF defers considering 9 projects worth Rs. 249mn.

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The ‘Local Loans and Development Fund’ under the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government was summoned to the Committee on Public Enterprises (COPE) which met on July 20 under the chairmanship of Member of Parliament Prof. Ranjith Bandara.

This institution has been established by Ordinance No. 22 of 1916 with the aim of providing financial facilities at a concessional interest rate to the local government bodies for running public utility services as authorized by law. It has been amended on several occasions and has been named as the Local Loans and Development Fund under Act No. 24 of 1993.

The investigation was done through the following basic facts related to the Auditor General’s reports for the financial years 2020, 2021 and current performance.

Need to amend the Act

Since this is a financial institution similar to a bank, the need to amend the Act was emphasized by taking into consideration the timely matters. According to the Act, it is not appropriate for the Secretary of the Ministry to act as the Chairman of the Fund, so the Auditor General pointed out the importance of making amendments by focusing on all those matters.

It was discussed that, in 2018 ‘Asian Foundation’ had given a report regarding the restructuring of the institution and if it had been acted upon, great progress could have been achieved.

Since the Prime Minister as the Minister in charge of the subject has also held a discussion to amend the Act, the Secretary of the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government was informed to take steps promptly. 

Need to make the posts of Director General and Internal Auditor full time permanent posts

The committee’s attention was drawn to the fact that the position of Director General has been an acting position for many years. It was also discussed about the absence of a permanent Internal Auditor. Accordingly, the COPE ordered to inform within two weeks about the next steps to be taken to appoint a permanent Director General as well as a full-time permanent Internal Auditor.

Absence of a formal system for disbursement of loans, project evaluation, and loan recovery

It was revealed that the fund has received 9 projects worth 249 million rupees in the year 2023, but the board of directors has not considered them yet.

Thus, it was recommended that a formal system and set of guidelines be set up, focusing on issues such as granting and recovery criteria, loan recovery capabilities, projects using loans and productivity. The committee emphasized the need for the loan committee to operate according to that formal system.

Need to streamline the system of loan distribution to each province

The COPE chairman revealed that 691 million rupees of the total loan amount of 847.7 million rupees has been given to the North-Western Province in 2021. The committee recommended that the loan distribution system to each province be streamlined.

Streamline the Internal Audit 

The committee discussed about the lack of a permanent Internal Auditor to conduct the internal audit properly. It was recommended to recruit a permanent Internal Auditor and to provide the audit reports for the years 2011 and 2012 to the Auditor General within a month. It was also advised to implement the recommendations of the National Audit Commission.

A Corporate plan has been prepared for the period of 2019-2023, but it was revealed that it has not been approved. Accordingly, the committee advised to approve a corporate plan from 2023 to 2028.

Attention was also paid to the non-recovery of a loan amount of 12 million rupees given to the Dambulla Pradeshiya Saba in 1995, under the multi-crop development project, and the loan amount of 60.9 million rupees given to the Kandy Municipal Council. Accordingly, it was advised to take the relevant legal steps immediately.

The COPE Chairman emphasized that the activities of the ‘Local Loans and Development Fund’, which is the only institution that provides financial assistance to development activities through local government bodies, should be more streamlined. It was also decided to summon this institution in another six months.

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The National War Heroes Commemoration tomorrow at Kotte Cenotaph

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The 16th National War Heroes Commemoration Ceremony will be held on Monday (19 May) at the National War Hero Cenotaph in Sri Jayawardenepura, Kotte, from 4.00pm to 6.00pm.

A series of island-wide community welfare programmes will also be carried out by armed forces, Police and Civil Security Department in view of the War Hero Commemorations.

Deputy Minister of Defence Major General Aruna Jayasekara (Retd) is expected to represent President Anura Kumara Dissanayake at the event. Field Marshal Sarath Fonseka, Admiral of the Fleet Wasantha Karannagoda and Marshal of the Sri Lanka Air Force Roshan Gunathilleke are also scheduled to attend the ceremony.

The Ministry of Defence on Friday convened a press conference to announce the preparations for the ceremony. Commanders of the Navy and Air Force, Army Chief of Staff, senior military officials and Ministry representatives were present at the press briefing.

Defence Secretary Air Vice Marshal Sampath Thuyacontha (Retd) underscored the national significance of the annual commemoration, paying tribute to the brave men and women of the armed forces, Sri Lanka Police and Civil Security Department who laid down their lives in the defence of the nation.

He reiterated the Ministry’s and the Tri-forces’ commitment to preserving the memory of fallen heroes, ensuring that their legacy of patriotism, sacrifice, and unwavering commitment to duty continues to inspire future generations.

During the briefing, officials of Ranaviru Seva Authority and armed forces provided an overview of the ceremonial proceedings, which will include wreath-laying, special tributes, and military honours, with the participation of distinguished guests, military personnel, and the families of war heroes.

The event seeks to serve as a solemn occasion for the nation to express its gratitude and respect for those who selflessly served the country’s sovereignty and national security.

The Ministry of Defence calls upon all citizens to stand in solidarity in remembering the nation’s war heroes, reaffirming collective appreciation for their dedication to protecting the country and its people.

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NMRA chief resigns, citing threats to life

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Saveen Semage, the Chief Executive Officer (CEO) of the National Medicines Regulatory Authority (NMRA), resigned with immediate effect yesterday, citing threats to his life.

On May 9, CCTV in his home captured two men breaking in and walking around the residence for around half an hour from 11.30pm to midnight. They were observed peeping into the bedroom where Dr. Semage slept. His wife and children were also asleep in the house.

Dr. Semage, a public health specialist, was appointed to the position in January 2024. He was also previously CEO from November 2021 to May 2022, when he resigned over differences with former Health Minister Keheliya Rambukwella. He was brought back last year by Ramesh Pathirana—who replaced Minister Rambukwella after he was forced to resign over irregularities in drug procurement—to clean up the drugs regulatory mechanism.

However, he faced stiff resistance from the pharma industry, particularly in his efforts to break drug monopolies and oligopolies that were blamed for rigging tenders (typically agreements among competitors to fix prices, allocate markets, or engage in other anticompetitive activity). He was also a victim of social media attacks largely blaming him for being politically motivated.

“There was a lot of tension within the NMRA and the pharmaceutical industry during the last two to three weeks because of my efforts in pricing and in breaking monopolies and oligopolies to save public funds,” Dr. Semage told the Sunday Times. “I think the break-in was a threat in an effort to remove me.”

“During the past 15 months, the NMRA has cleared the backlog of registrations and streamlined re-registration for drugs. He was also able to trace fake documents and to kick-start a digitalisation process that abruptly came to an end in 2021 when the NMRA database was mysteriously erased. During his term, the Authority also doubled its staff, taking in 30 new pharmacists, among others. The National Advisory Committee and Appeals Committee were also put in place, and a pricing mechanism, along with guidelines, was published.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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Dual citizenship backlog: 1000 to be issued soon

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The Department of Immigration and Emigration is struggling with a backlog of more than 3,000 dual citizenship applications piled up over the past few months, with some papers submitted more than seven months ago remaining unattended.

At least 1,000 of these applications have got the all clear from the relevant authorities, including clearance from the Police and the State Intelligence Service (SIS), but the applications have stalled at the department level, the Sunday Times learns.

The main dual citizenship applicant is required to pay US$ 2000 (around Rs 600,000), with the spouse and unmarried children below the age of 22 paying US$ 500 each. It is this category of applicants who contribute substantially to the income of the department.

Public Security Minister Ananda Wijepala, when contacted by the Sunday Times, admitted the clearance of dual citizenship certificates had slowed down and said that he had instructed the department to immediately begin the issue of certificates to around 1,000 applicants whose background checks had been completed. They will receive the certificates within a week.

“There has been a delay, but I have instructed the department officials to ensure that the work is expedited,” he said. The department’s citizenship division, which handles the applications, comes under a deputy or assistant controller.

Many dual citizenship applications are submitted through Sri Lanka’s overseas missions. “Applicants are inconvenienced by the delay in the issuing of the certificates, as those who have taken foreign citizenships need the dual citizenship from here for their land/property transactions, financial activities, etc.,” an applicant told the Sunday Times.
According to the performance report of the department for 2023, more than 7,300 dual citizenships were issued, but the latest statistics are not yet available.
Meanwhile, the Department of Motor Traffic has run out of new number plates.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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