Malpractices committed during previous regime when providing housing loans | Daily News
Internal investigations reveal:

Malpractices committed during previous regime when providing housing loans

Various malpractices have been committed when providing housing loans and constructing houses under the Ministry of Housing and Construction during the former government’s time and monies spent for propaganda activities exceed a staggering Rs.570 million, authorities said yesterday.

Addressing a media briefing in Colombo yesterday the Secretary to the Ministry of Urban Development, Water Supply and Housing facilities Dr. Priyath Bandu Wickrama expressed shock over details found following internal investigations over the way monies had been spent for propaganda and other malpractices at his ministry in the past.

Dr.Wickrama said more than Rs.347 million had been spent for propaganda activities by the urban development authority, Rs.150 million plus by the ministry and over Rs.100 million by land reclamation and development corporation.

He said an internal audit had found alarming malpractices when granting housing loans and construction of houses and further probes are being conducted.

Dr.Wickrama said legal action will be initiated against those responsible after investigations.

Dr.Wickrama explained that some housing loans had been granted for unsuitable persons and without a proper study and in some instances loans had been granted again to some individuals to pay existing debt. The Secretary also charged that houses had been constructed haphazardly at unsuitable locations and some loan beneficiaries were untraceable. He said following further investigations legal action will be initiated.

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