ECONOMYNEXT – Sri Lanka’s state-run National Housing Development Authority has accumulated losses of nearly 20 billion rupees with five billion run up over the last five years, according to information revealed at a parliamentary panel.
In 2011, 10 billion rupees of loans were disbursed through state banks under scheme called ‘Upahara’ without collateral, the Committee on Public Enterprises (COPE) was told by the current Chairman of NHDA, a statement from the parliament said.
About 3 billion of the loans given through the scheme were in arrears.
COPE Chairman Ranjith Bandara instructed that a report on this loan scheme be given to the Committee as soon as possible.
Some accounts of the NHDA were used as collateral.
It was also recommended to the Treasury to issue an urgent circular to prevent the implementation of such loan schemes that secure the institution’s assets as collateral.
The COPE had conducted the inquiry based on Auditor General’s examination of its operations in 2019 and 2020. But the NHDA had not filed annual reports for 2019, 2020, 2021.
The COPE had ordered the reports to be submitted by November 2023.
The NHDA has been at the mercy of various governments and ministers over the years who have overstaffed the authority with their supporters. (Colombo/October28/2023)