“Ambuluwawa Trust has not adhered to Govt. financial regulations”

The Secretary to the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government is accused of aiding and abetting a ruling party politician from the Kandy district in his alleged corrupt activities.
Pradeep Yasaratne, the Ministry Secretary who is under the spotlight, attracted severe criticism for allegedly transferring A.D. Jayaratne the Divisional Secretary (DS) Udapalatha, Gampola, to the Ministry pool from January 26. 
This was said to have done simply because Jayaratne was intending to file legal action on February 12 against ‘State Minister of Justice and Prison Affairs Anuradha Jayaratne’, for his alleged involvement in a number of corrupt deeds in Gampola. 
However, the Public Service Commission (PSC) turned down the transfer on January 30 and had instructed Yasaratne to revert the decision. But, Yasaratne is alleged to have appealed against this decision and had requested the PSC to consider implementing this transfer. The PSC had reprimanded the Ministry Secretary and directed the latter to reinstate the Divisional Secretary with immediate effect. 
The reason for this questionable transfer was due to the Divisional Secretary (Udapalatha) requesting the District Secretary Kandy Chandana Tennakoon to hold an inquiry against the State Minister for his alleged involvement in many corrupt activities in Gampola. By letter dated December 22, 2023 the Divisional Secretary had requested from Tennakoon- copying the same to the Ministry Secretary Yasaratne and the President Secretary- to hold an inquiry against the State Minister. Instead of taking action Yasaratne had transferred the Divisional Secretary to the ministry pool without initiating an inquiry against the allegations levelled at the State Minister.
Although Yasaratne- as the Ministry Secretary- failed to discharge his duties, Additional Secretary to the President Faleel A. Mubarak, on the advice of the Senior Additional Secretary to the President (Policy Implementation and Monitoring Division) B.G.G. Milinda, by letter dated December 29, 2023, has instructed Yasaratne to initiate an inquiry on the said matter and to report back to him the outcome of the investigation.
“Yasaratne has ignored the Presidential Secretariat directives vehemently,” sources from the Presidential Secretariat told this newspaper.

Instructions

Soon after the Divisional Secretary (Udapalatha) was transferred, this newspaper contacted Yasaratne on January 31, 2024, to find out why he had not taken any action regarding the request made by the Divisional Secretary and also failed to abide by the instructions given by the Presidential Secretariat, Yasaratne did not make any comment claiming that he was busy with back to back meetings.
After the said call, Yasaratne, on the same day, has faxed a back dated letter to the Additional District Secretary (ADS) Kandy R.L.B. Atampawala, appointing a three member committee to hold an inquiry on the matter requested by the Divisional Secretary (Udapalatha).
Yasaratne’s letter to appoint the three member committee- although dated as January 16, 2024- had been faxed to the ADS office on January 31, 2014. The official stamp of the ADS placed on this letter confirms it was received on January 31. A copy of this letter is in possession of this newspaper. 
“If the letter was typed on January 16, Yasaratne should have either faxed or posted it to the ADS office the following day. The reason for him to fax this back dated letter on January 31, was because the media questioned him on why he did not take any action against the State Minister,” a senior officer at the ADS Office Kandy told this newspaper.
Divisional Secretary (Udapalatha) in her letter has requested District Secretary Kandy to hold an inquiry into the alleged misappropriation of funds of the Ambuluwawa Trust Fund, how the State Minister was involved against the construction of the Elderly Day Care Centre at Waththahena Grama Niladari Division and how the national heritage building at Gampola has been leased out using a forged document.

According to reliable sources from the Kandy District Secretariat, all attempts taken to construct the day-care centre for the elders was foiled by the State Minister claiming that no one is allowed to do any development work in state lands in the area without his permission.

Threats

“Despite these threats the National Secretariat for Elders allocated Rs.3.5 million to the Divisional Secretary to construct this day-care centre which commenced in December 2023. 
However OIC Gampola Laksiri Fernando is alleged to have acted on the instructions of the State Minister and has threatened the contractor and his workers to stop the construction work stating that failing which they would be arrested and put behind bars. The Divisional Secretary had once called the OIC to ask why he is threatening the construction workers to which he had stated that it was Anuradha Jayaratne that wanted him to do so. The Divisional Secretary has got this conversation recorded. As a result of these threats, the National Secretariat for Elders- by letter dated December 23, 2023- had wanted the Divisional Secretary to stop the construction work and to reimburse the balance monie. By December 31, the work came to a complete standstill; depriving the elderly residents in the area a place to spend their time when their kith and kin are away at work,” sources said.
When Gampola OIC Fernando was contacted to know why he threatened the contractors, he said that there were many complaints from the villagers against this construction. When asked whether it was the villagers or the State Minister that wanted him to get this work stopped, the OIC said that the State Minister was not involved, but he acted merely on the complaints lodged by the villagers.

Meanwhile, our sources further revealed how the State Minister has allegedly leased out part of the Cultural Heritage Building at Gampola on a forged deed. 
“When the Grama Niladari in the division had informed this to the Divisional Secretary, she immediately checked whether this has been leased out by the Divisional Secretariat. She had found out from the Land Registry that a forged deed had been given to the lessee. Immediately the Divisional Secretary had pasted a notice on the wall asking them to vacate the building, but these instructions were to no avail. She had lodged a complaint with the CID to look into how a forged deed had been registered with the Land Registry,” sources said.
Be that as it may, it has now come to light how the Ambuluwawa Dissanayake Mudiyanselage Jayaratne Religious Centre and Bio-diversity Complex Trust Fund has misappropriated the income of the Religious Centre and Bio-diversity Complex amounting to billions of rupees. The Auditor General’s reports from 2010 to 2022 -copies of which this newspaper is in possession of- clearly state how the Trust Fund has been maintained violating all norms of Government Financial Regulations. They also give details of how the authorities have continuously failed to provide the necessary documents for the Government Audit on time. 
According to the Hansard Report of November 18, 2023, MP Chaminda Wijesiri has stated that a Rs.176.887 million fraud had taken place at the Religious Centre and Bio-diversity Complex Trust Fund and while referring to 2021 Auditor General’s (AG) Report has informed the parliament that counterfoils of all entrance tickets issued have been set on fire to prevent the AG from obtaining details regarding the sale of tickets. 

Wijesiri has also brought to the notice of parliament how the Trust Fund vehicles have been sold without following procurement guidelines and how payments have been made to unauthorised vouchers which amounts to several million of rupees.  

Accounts

Ambuluwawa Dissanayake Mudiyanselage Jayaratne Religious Centre and Bio-diversity Complex Trust Fund Act No: 44 of 2009 was enacted by the Parliament of Sri Lanka. As per Section 10 (4), the Auditor General (AG) shall audit the accounts of the Fund annually in accordance with Article 154 of the Constitution.
Although there are 20 objectives the Trust Fund has to fulfill with the income it generates, the audit report shows that this Fund has failed to accomplish most of these objectives as stipulated in Section 4 of the Act.
Section 10 (1) of this Act, says that the Trust Board shall cause proper books of accounts to be kept of the income and expenditure, assets and liabilities and all other transactions of the Fund. 
But the audit reports show that the Trust Fund has failed to submit its performance reports, cash flow statements of changes in the accumulated fund, basic accounting policies and financial statements to the National Audit Office (NAO) on time; although it should be presented within two months after the end of each financial year.
Violating Financial Regulation 135, the Trust Fund has not delegated its authority to anyone to certify/approve to make payments in respect of all expenses. Two employees- who are not authorised- have approved and certified payment vouchers. The Trust Fund also has not maintained a register of counterfoil books and had not maintained records to show how many entrance tickets had been issued. As a result, the NAO has failed to find out how many tickets have been issued and how much money was generated through ticket sales.
The summery of the government audit reports shows that the scams involved in the Trust Fund are approximately a staggering as Rs.114.094 million.

According to the audit reports from 2009 to 2012, the Trust Fund has not accounted Rs.13.619 million which it received from the Public Trustee. Hence the audit was unable to find out for what purpose this money was spent on. 
The Trust Fund has also not accounted for the interest it receives from a fixed deposit amounting to Rs.15 million. The deposit was opened by the Public Trustee at the National Savings Bank under the Trust Fund’s name in 2009. For the year 2010, the receivable interest was Rs. 875, 000, for 2011 the receivable interest was Rs.1.625 million and for the year 2012 the interest was Rs.2.375 million. Hence the NAO has failed to determine what happened to the interest it accumulated within these three years.
The value of two buildings belonging to the Trust Fund, as at December 31, 2010, amounting to Rs. 4.67 million, had been omitted from fixed assets.
As per the agreement entered into with telephone companies to erect telephone towers within Ambuluwawa- for the period starting from June 7, 2010 to June 6, 2015-a lease rent of Rs. 54, 000 should be received by the Fund monthly. However, the accounts do not disclose of any of the rental monies they received. The NAO was unable to ascertain how much money they received from these telephone tower lease agreement. 
As per the 2020 audit report, three FD certificates to the amount of Rs.4 million at the Bank of Ceylon Gampola had not been furnished for the audit. Although the Trust Fund states that it does not have in its possession the original certificates, but only bank certified copies, the NAO has stated that the original Fixed Deposit certificates should be submitted for the audit.
According to the audit reports, entrance tickets had not been printed in accordance to a proper plan. The tickets at the value of Rs.25 had been altered and used instead of tickets valued at Rs. 100, 150 and 300; leading to financial irregularities.
Action had not been taken to obtain the daily income reports and monthly summary reports related to the sale of tickets. These tickets were issued using computers. Those possessing these tickets were given access to enter the Ambuluwawa Biodiversity Complex. These tickets were accounted for under the supervision of a responsible person. 

A sum of Rs. 9.5 million had been shown in the register of revenue as the income earned through the sale of tickets. However, that income could not be satisfactorily vouched for as the counterfoils of the tickets had been destroyed purposely by setting fire to them. Although the Trust states that details of ticket sales had been recorded in the register on a daily basis, the NAO in its recommendations has stated that the counterfoils of the admissions should be made available to figure out the revenue. A register of counterfoil books had not been maintained to keep records regarding the issuing of tickets.
The treasurer of the Fund has informed the NAO that two vehicles owned by the Fund had been sold to external parties at a value of Rs.7.5 million during the preceding years based on an assessment made privately by a government valuing process without following the tender procedure. However, the documents of assessment and information on the funds received after the sale of these vehicles have not been made available to the audit.
It is also reported on how a vehicle worth of Rs.4 million- bought and handed over to the Trust by the Public Trustee- has gone missing and no one has any details regarding it.
As per the 2022 audit report, the board of Trustees had not taken steps to provide accurate, clear and comprehensive information to the audit regarding the transactions carried out in relation in 2022 and the preceding years. According to the audit report, documents and books were not maintained and there has been no authorised responsible officer employed in the office to maintain the books.
Violating government financial regulations, the Fund has paid Rs.37. 445 million for 277 unauthorised vouchers without obtaining the names of all payees. According to the audit reports names of every payee has to be written on each voucher and it’s a must to obtain acknowledgement receipts. However, this practice has not been followed by the Trust. The Trust Management has not made any comments to the NAO on these findings.
In making payments, although the relevant vouchers should be prepared, numbered and recorded in the cash book and in the expense register, cheques had been directly written and payments have been made without preparing vouchers. A register on advance payments had not been maintained and fixed assets had not been prepared. The management of the Trust Fund has stated that action will be taken to rectify what has been brought up by the NAO.

Although the number of the voucher should be mentioned on the counterfoil of each cheque drawn this practice has been ignored by the Trust Fund.
It has also come to light how payments to the value of Rs. 609, 845 had been made for non-submitted bills; leading to an irregularity.

Inquiry 

Secretary Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government Pradeep Yasaratne did not wish to clarify why he made an appeal to the PSC to transfer DS Udapalatha when the request he made initially was turned down. But he said that he had to make the appeal on the request of inquiring officers who are holding an inquiry against the Divisional Secretary. 
“I am sorry I don’t have time to make any further comments on this as I am busy now. Call me later,” he added.  

Attempts to contact fail

All attempts to contact Auditor General Chulantha Wickremasinghe for a comment failed as he neither respond to any of the calls nor to the text message sent to him till the paper went for publications.         

Minister Jayaratne refutes allegations claims DS tarnished his image
State Minister Anuradha Jayaratne when contacted said that he never asked the Ministry Secretary to transfer the DS to the Ministry pool but filed legal action against her for tarnishing his name for baseless allegations.
“I sent her a letter of demand. The DS got an elderly day care center built at Waththahena in Gampola on a land I was planning to start a water purification centre to give clean drinking water for 21, 000 families in the area. For this elderly day care center, the government allocated Rs.3. 2 million and it was for the benefit of all elders in the district. Had she told me the requirement, I would have allocated a land for the project from Kandy town. She had to put this proposal to the District Development Committee which is headed by me. But she never informed me about this. Hence I had to ask the Secretary Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government to conduct an inquiry on this against her. But I never asked him to transfer her which is not ethical,” the State Minister said.
When asked him why frauds are taking place at Ambuluwawa Trust Fund, State Minister Jayaratne refuted the allegations levelled and said that there are no frauds reported at the Trust Fund. 
“We have to send all our financial statements to the Auditor General annually. I took over the Chairmanship in 2020 after my father’s demise in 2019. The AG sends these audit reports to the oversight committee. If there were reported frauds, the opposition would have brought this up in parliament. We have submitted all our income /expense statements to the government audit without any delay,” he added. 
All attempts to contact Auditor General Chulantha Wickremasinghe for a comment failed as he neither respond to any of the calls nor to the text message sent to him till the paper went for publications.