NSB gets million dollar loans from foreign banks

Tuesday, 11 June 2013 

The National Savings Bank (NSB) has signed agreements with three private foreign banks to secure loans amounting to US$. 3,000 million. Taking loans from foreign banks through state banks are the latest move by the government to collect funds for its daily operations.

The relevant agreements were signed a few days after the new NSB Chairperson, W.A. Nalini assumed duties in the bank.

Former NSB Chairman, Sunil S. Sirisena was forced to resign from his post in the bank after he had continuously refused to enter into agreements with foreign banks to raise loans. He had told the government officials that it would place the NSB under an undue risk and would therefore not enter into such agreements.

However, after Sirisena’s removal, Nalini, who is a batch mate of Treasury Secretary Dr. P.B. Jayasundera, had signed agreements with Citi Bank, Barkleet Bank and Hong Kong and Shanghai Bank on the 6th. The NSB has taken out commercial loans of US$ 1,000 million from each of these banks.

Clauses of the agreements have so far not been revealed.

Auditor General questions Ranaviru Seva Authority

Monday, 10 June 2013

The Auditor General’s Department has raised questions over the activities of the Ranaviru Seva Authority that functions under the Defence and Urban Development Ministry.

The Auditor General has posed the questions when presenting the 2010 financial report of the Authority.

The Auditor General has pointed out that there have been delays in presenting the Authority’s annual reports and financial reports, shortcomings in accounting, lack of written evidence in conducting an audit, inefficiencies in management and operations and non financial transactions.

It has also been noted that the Authority had distributed only six lands among the war heroes during the period under review and that four donors had donated lands to be distributed among the war heroes. However, the Auditor General has stated that the lands had not been distributed as requested by the donors.

While the Authority manages 39 villages, 26 villages do not have basic facilities like water, roads and transportation.

According to the Auditor General, the required number of families of war heroes has not been settled in18 villages set up by the Authority.

The Authority does not possess a proper plan to develop these villages and to uplift the socio-economic conditions of the people living in these villages.