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Cabinet suspends work, payments of Defence HQ

22 June 2016 03:07 pm - 12     - {{hitsCtrl.values.hits}}

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The Cabinet on Tuesday suspended the construction of the Rs. 40 billion Defence Head Quarters Complex (DHC) at Akuregoda and the payments to the private contractor, as the selection of consultancy firm and payments that had been made were done without providing true information to the Cabinet, Cabinet Spokesman Dr. Rajitha Senaratne said today.

The Cabinet Memo presented by President Maithripala Sirisena as the Minister of Defence to this effect had revealed that a huge financial mismanagement, running into billions of rupees, had taken place during the initial stages of the project and all Cabinet Papers pertaining to the project had been prepared on the whims and fancies of the former Defence Secretary, he said.

President Sirisena told the Cabinet that a four member committee appointed to conduct an inquiry on the construction of the DHC has observed that that selection of consultancy firms and their payments have been done without providing true information to the Cabinet.

The proposal sought to suspend the services of the selected private firms and to review the payments made to the said firms, and if the payments were approved by the Cabinet.

Minister Senaratne said the Cabinet has information that Rs. 600 million, out of Rs. 2,200 million paid to the consultancy firm, was paid in excess and the Consultancy firm had been registered with the Registrar of Companies after the tender was offered to the firm by the Defence Ministry.

“There is no doubt, that a huge financial fraud has taken place involving this project and the Government would go to the bottom of it and expose the culprits and take legal action against them before long, he said. (Sandun A Jayasekera)

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  Comments - 12

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  • Uncikun Wednesday, 22 June 2016 04:04 PM

    Rs. 40 billion Defence Head Quarters Complex (DHC)! What a waste of public funds. When travelling to the north and east I could these sprawling complexes. They are more resort than military camps. Luck to escape with a 15% VAT.

    Sharon Wednesday, 22 June 2016 04:06 PM

    No money to pay. Rs.14 Bn. per month is paid to public servants in terms of 10,000 (election money). How can you do development then????

    Unchikun Wednesday, 22 June 2016 04:09 PM

    Sanity at last. Please use the money to provide shelter, education and health for the poor.

    Dumbo Wednesday, 22 June 2016 04:14 PM

    Mr. Minister, please stop talking and expedite the inquiries so that the culprits are brought to book ASAP. The people of this country need to see this.

    BuffaloaCitizen Wednesday, 22 June 2016 04:16 PM

    It is very sickening and sad that public money had been extremely abused by the earlier regime and we the citizens of this country are simply complacent at so many billions of our taxes that could have been used for many other useful purposes useful for public such as highway for Galle Road, High Level Road, Kandy Road; additional universities for medicine and engineering; more hospitals for an over aging population; agriculture!!!!

    Unchikun Wednesday, 22 June 2016 04:38 PM

    Open the labour market with our neighbours and bring the salaries down. Now other way to go forward from this mess.

    usuf Wednesday, 22 June 2016 04:47 PM

    For God sake discover the bloody culprits impound their travel documents and detain those criminals until found guilty via DM Android App

    Dee Wednesday, 22 June 2016 05:07 PM

    Enough talk. Expose the names of the individuals and companies.

    Gihan De Saram Wednesday, 22 June 2016 05:09 PM

    If this is investigated deeply we may definitely find reasons for MR to cut his throat.

    Baffled Wednesday, 22 June 2016 06:04 PM

    Its sensational news but whats the use if culprits are not caught and plundered money recovered via DM Android App

    Silva Thursday, 23 June 2016 12:55 PM

    Puppy shame, former regime even didn't know how to do a fraud properly, they take money first and then register a company ! and we are voting them to rule our country ! ! !

    ralahamy Thursday, 23 June 2016 03:31 PM

    When a person is blinded by unlimited power, he tend to forget that Sri Lankans will kick him and the like out of power.


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