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.
President Anura Kumara Disanayake stated that the life of His Eminence Malcolm Cardinal Ranjith serves as an exemplary model in an era when the moral and spiritual values of society are in decline.
The President made these remarks yesterday (July 07), delivering a speech at the felicitation ceremony organized by the Archdiocese of Colombo to mark the 50th Ordination Anniversary of His Eminence Malcolm Cardinal Ranjith’s sacred priesthood. The event was held at the Archbishop’s House in Colombo.
The President stated that His Eminence is deeply engaged in a tireless mission to uphold social harmony and spiritual upliftment. He is a statesman who has rendered a significant service to the country, a theological scholar capable of articulating the teachings of the Bible with clarity, a powerful orator with the ability to awaken society and above all, a true humanitarian whose influence extends beyond these roles.
The President further affirmed that every possible step will be taken to ensure justice for the victims of the Easter Sunday attacks, without allowing the passage of time to obscure the truth. He emphasized that this is a challenge the government must confront, even within its own institutions and no matter how difficult it may be, justice must be served.
Addressing the gathering, His Eminence Malcolm Cardinal Ranjith reflected on his 50 years of priestly service and commended President Anura Kumara Disanayake for his success in ending a 75-year era of autocratic rule. He also expressed appreciation for the President’s efforts to dismantle a political culture rooted in spreading division among ethnic communities and emphasized the need for a new approach as the country moves towards becoming a prosperous nation.
On this occasion, to mark the 50th Ordination Anniversary of His Eminence Malcolm Cardinal Ranjith’s priesthood, a commemorative stamp and first-day cover were officially presented to the President.
His Eminence Malcolm Cardinal Ranjith was born in 1947 in the Polgahawela area of Kurunegala. He was ordained as a priest on June 29, 1975, at St. Peter’s Basilica in the Vatican, by Pope Paul VI. Thereafter, he served in various roles including Assistant Parish Priest, Acting Parish Priest, Lecturer in theology and professor at the seminary. He is proficient in multiple languages including Sinhala, Tamil, English, German, French, Spanish and Indonesian.
In 1991, under the leadership of then-Archbishop His Eminence Nicholas Marcus Fernando, he was appointed as Auxiliary Bishop of the Archdiocese of Colombo, with his episcopal ordination taking place at the Basilica of Our Lady of Lanka in Tewatte.
Subsequently, on June 16, 2009, Malcolm Ranjith was appointed as the Archbishop of the Archdiocese of Colombo. A year later, on November 20, 2010, he was elevated to the rank of Cardinal at the Basilica of Saint Lawrence in Italy. With this appointment, His Eminence Malcolm Cardinal Ranjith became the second Sri Lankan to receive the blessing of holding the title of Cardinal. He has held numerous positions both nationally and internationally, including serving as chair of several international assemblies.
His Eminence has been the recipient of numerous international accolades, including the Thomas Aquinas Medal for Religious Studies awarded by the Thomas Aquinas College in the United States and the 7th Giuseppe Sciacca International Award for Cultural Achievement, conferred in 2008 by the President of the Italian Republic. A respected writer as well, he has contributed a multitude of articles to journals and newspapers.
Ven. Anunayaka of the Malwathu Chapter, Most Venerable Niyangoda Vijithasiri Thero and Ven. Dr. Omalpe Sobhitha Nayaka Thero extended their wishes during the occasion.
The event was also graced by the Maha Sangha of the three Nikayas, religious leaders from all faiths, President of the Catholic Bishops’ Conference of Sri Lanka, Bishop Harold Anthony Perera, the Charge de Affairs of the Apostolic Nunciature Msgr. Roberto Lucchini, Auxiliary Bishops of Colombo Most Rev. Maxwell Silva and Most Rev. Anthony Jayakody, other Catholic clergy, Prime Minister Dr. Harini Amarasuriya, Opposition Leader Sajith Premadasa, several Ministers and Members of Parliament, Commanders of the Tri-Forces, the Acting Inspector General of Police, Ambassadors and many other distinguished invitees.
Mohamed Sheriff Abdul Wazeeth was sworn in as a Sri Lanka Muslim Congress (SLMC) National List MP before Speaker – Dr. Jagath Wickramaratne today (July 08).
He took over the Parliamentary seat that became vacant following the resignation of M.S. Naleem.
It has been reported that opposition ranks are planning to table a No-Confidence Motion against the Speaker – Dr. Jagath Wickramaratne.
According to political sources, many opposition parties have already agreed to support the move, with a final decision expected to be reached today (July 08).
The NCM is said to be based on several allegations of the Speaker obtaining additional benefits, misusing powers of his office and acting in a biased manner, favouring the ruling party.
Meanwhile, during a Samagi Jana Balawegaya (SJB) group meeting yesterday, criticisms have been raised on certain facilities and privileges the Speaker is said to have obtained.
In recent weeks, several opposition MPs, including Dayasiri Jayasekara, have publicly criticised the Speaker’s conduct in Parliament.