• US $10 million assistance for maize farming mired in corruption 
• Only 60 percent of loan meant for agriculture modernization used 

By Kelum Bandara   

 In a blow to agricultural development initiatives in Sri Lanka, revelations of mismanagement, corruption and inefficiency have surfaced, impacting both a US $10 million loan earmarked for maize cultivation and a separate US $90 million fund designated for an agriculture modernization project, Daily Mirror learns.  

In the instance of a US $ 10 million loan from the International Fund for Agriculture Development (IFAD) for the development of maize cultivation has been misused resulting in denial of benefits for eligible farmers, Daily Mirror learns.   

Complaints from farmers across the country suggest that certain officials involved in the project may have misappropriated funds by falsifying documents to make it appear as though they were allocated to beneficiaries.  

MP D. Weerasinghe who heads the Sectoral Oversight Committee (SOC) on Food Security and Agriculture told Daily Mirror that he ordered the Agriculture Ministry Secretary and the Auditor General to conduct a probe into the case and submit a report.  

“People pinpoint only politicians for misappropriation of funds meant for development. We can only give political leadership. It is unfortunate to seek officials indulging in corruption and malpractices at a time when the whole country wants to revive agriculture,” he said.  

Coming up with more details, he said farmers in Anuradhapura, Ampara, Moneragala, Hambantota and Badulla were meant to benefit from this in the current cultivation season. Each selected farmer was entitled to assistance worth Rs.105, 000 in terms of seeds, agriculture fertilizer and allowances for land preparation for cultivation.  

“Allegations have emerged involving agriculture officials who have purportedly identified several members of the same family for benefits. However, the assistance package has allegedly been exclusively allocated to only one individual, while the remaining benefits intended for others have been diverted and purportedly sold in the market,” he said.  

He said the IFAD assistance was meant for the enhancement of productivity of maize farming in Sri Lanka. Sri Lanka totally depended on imports for seed maize in the past.  
“Now we produce 10 percent of the local requirement. We are planning to increase it up to 40 percent next year,” he said.  

Besides, in a separate case, a US $ 90 million loan for an agriculture modernization project has not been fully utilized during the stipulated five year period triggering fear whether the IFAD will withdraw the unused amount.  

Mr. Weerasinghe said only 60 percent of the pledged amount had been used.  

“Again, inefficiency of officials is the main reason. Retired government officials have been selected to work on the project. They deliberately delay the project implementation. They have asked for a one year extension of the project. Then, they can keep enjoying benefits in terms of salaries and vehicles,” he said.