National Livestock Development Board
by Nirmala Kannangara
Guidelines of Department of Public Enterprises that shows how to utilize eneterprise resources and The unlawful NLDB Board decision on fund alloaction for the Minister for fuel
Shocking facts have now emerged how the Chairman and Board of Directors of National Livestock Development Board are aiding and abetting the Rural Economic Development Minister P. Harrison to ‘develop’ his personal economy rather than the rural economy of the country.
The board of Directors of National Livestock Development Board (NLDB) had taken an unlawful board decision on January 31, 2017 to ‘develop’ the minister’s personal economy by approving to settle a staggering fuel bill amounting to over one million rupees and a monthly fuel allowance of Rs.175, 000 in contrary to guidelines issued by the Department of Public Enterprises of the Finance Ministry.
Overruling Department of Public Enterprises guidelines on utilisation of enterprise resources, in the absence of three board members, Chairman NLDB, Prof. H.W. Cyril and two other Board Members A. Punchihewa and S. Weerasuriya have taken a board decision to grant covering approval to settle Rs. 1.059 million, the Minister and his staff had spent on fuel for their ‘visits’ to NLDB Farms between February 26, 2016 and January 13, 2017.
In addition, at the same board meeting the Board had decided to allocate a sum of Rs.175, 000 per month for fuel for the subject minister and his staffs’ visits to all NLDB farms in the country. The three board members who were not present at the board meeting in question was Deputy Chairman C.P. Palansuriya, Treasury representative A.G. Nishantha and K.K. Vasanje. Although all these three Directors were not present when this fraudulent decisions were taken, their failure to object even at later board meetings shows they too have given their consent to bypass Finance Ministry guidelines in order to be in good books with the subject minister.
However, questions have been raised as to why the Treasury representative A.G, Nishantha who is well aware of rules and regulations imposed by the Department of Public Enterprises and had been appointed to the Board to see whether financial irregularities are taking place, is silent on this erroneous board decision over the past several months and was trying to whitewash the decision taken when this newspaper questioned him last week.
“Although such a decision was taken at the 482nd board meeting, to my knowledge, the Chairman at a later board meeting had cancelled the decision,” Nishantha said. When informed him that Chairman Cyril when contacted did not tell this newspaper that the decision taken had not been cancelled, Nishantha said that he cannot make any comment until he speaks to the Chairman. Later, the Treasury representative told this newspaper that he will get this board approval reversed. “I was absent at this board meeting as it was held at a far away farm in Ambalantota as I had to attend to some other work at the national treasury. I got this board paper at a later date but did not notice this decision,” Nishantha said.
Minister of Rural Economic Affairs, Anuradhapura District MP, P. Harrison who still criticises the members of the former regime for their involvement in many financial frauds, too has now come to the limelight for misusing public funds to pump fuel for his fleet of vehicles obtained unlawfully from the Ministry pool. According to circular CA/1/17/1 issued on May 14, 2010 by the Presidential Secretariat, every Minister or a Deputy Minister is entitled only for three vehicles for his/her and the security usage. By passing this circular, it is alleged Minister Harrison is using additional vehicles taken from the Rural Economic Ministry vehicle pool and pump fuel on the account of other departments that comes under his ministry.
According to the document evident this newspaper is in possession, a budgetary allocation of Rs.8, 000 million for fuel had been given to Rural Economic Affairs Minister and his personal staff for year 2016 although he had taken yet another Rs.1. 059 million from NLDB.
Highly reliable officials from the NLDB who wished to remain anonymous said that there are other departments that comes under the Rural Economic Development Ministry and said that if the Minister had obtained a ‘special’ fuel allocation from NLDB, he would have obtained more money for fuel from other departments as well.
It is also alleged that the decision taken to hold the board meeting in question at the Ridiyagama Farm in Ambalantota was to prevent other board members from attending the meeting. “The Financial Crime Investigation Division (FCID) is now conducting an inquiry as to how former Rural Economic Development Minister Arumugam Thondaman misused Rs.7.692 million from NLDB on fuel from July 2013 till the change of government on January 8, 2015. Knowing that Minister Harrison too will be exposed on how he obtained money on fuel from NLDB, his cronies at the NLDB Board immediately gave a board approval by allocating funds for the Minister and his staff,” sources alleged.
Board Minutes of the 482nd meeting of the Board of Directors of the National Livestock Development Board held on Tuesday January 31, 2017 at 11am at Ridiyagama Farm, Ambalantota states as thus, ‘Fuel allocation for Hon. Minister and his staff. The Chairman briefed the Board on the contents of the subject board paper. The Board noted that the NLDB Has supplied fuel for the vehicles used by the Minister of Rural Economic Affairs and his staff for farm visits and the expenditure incurred in that regard from February 26, 2016 up to January 13, 2017 was Rs. 1, 059,275/ 50.
‘The Board whilst granting covering approval for the aforesaid expenditure, resolved to allocate a sum of Rs.175, 000 per month in respect of the expenditure to be incurred on fuel for the vehicles used by the Minister of Rural Economic Affairs and his staff on farm visits’.
This is contrary to Section 8.3.9 of the Department of Public Enterprises guidelines which clearly advices how to utilize enterprise resources. Section 8.3.9 of Department of Public Enterprises guidelines states as thus, ‘Public Enterprises are not permitted to incur expenditure or deploy its resources (including human resources) under any circumstances on behalf of the line Ministry or any other government institution.
Chairman NLDB Prof. H.W. Cyril when contacted to find as to why he ignored the Department of Public Enterprises’ guidelines and approved fuel allocation for the Minister and his staff, said that it was the Ministry Secretary that instructed him to pay for the fuel bills which can be reimbursed from the Ministry at a later date.
When contacted Director General Department of Public Enterprises K.D.N.R. Asoka, he said that it is highly unlawful for the Minister to obtain allowances for fuel other than from the Minister’s vote and also for the NLDB to take such a board decision.
“Neither the Minister nor the NLDB Board Members can play out with public funds. From the annual budgetary allocation to each ministry there is a separate vote for the Minister and his person staff fuel and expenditure. The Minister cannot claim for fuel from any other department that comes under his purview nor can any public enterprise allocate money for the line minister’s expenses. Please contact the Additional Director General of this Department for more information in this regard,” the Director General said.
Additional Director General Department of Public Enterprises, Ananda Wijeratne said that Ministry Secretary cannot give such directives to any department as the treasury had allocated every minister a separate vote for his/her operational activities.
“When there is such an allocation, neither the minister nor the ministry can say that they do not have enough funds. If there is a shortcoming it has to be informed to the treasury not to instruct the departments under the ministry to allocate allowances,” Wijeratne added.
Wijeratne further said that NLDB Board Members have to take the entire responsibility for misusing public funds and added that these public funds are regulated by the Finance Act.
“Every Minister is entitled only for three official vehicles. But there are instances where the ministers obtain vehicles from the ministry pool or from the departments under his purview. This too is highly unlawful. These officials do want to ‘help out’ the ministers’ not for anything but for personal favours. Ministers are politicians and they will go when there is a change of government. But the officials who are public servants will have to answer when an inquiry starts on mismanagement of public funds. The Ministries and all Departments are subjected to government audits and once Auditor General’s Department start their annual audits all these frauds will be unearthed by them,” Wijeratne claimed.
According to the sources, Minister Harrison’s million rupee transport fraud is a tip of an iceberg and alleged that his involvement in many other frauds once come to limelight which details will be given to the media in the near future.
“One of Minister Harrison’s advisors is H.L. Tissera who was the former Additional Secretary (Finance and Administration) Ministry of Livestock and Rural Community Development when Arumugam Thondaman was the subject minister. It was Tissera who instructed the then Chairman NLDB to provide fuel to the minister’s vehicle convoy for his official visits to Nuwara Eliya and Polonnaruwa as the ministry cannot afford for the fuel. This is now under investigation by the FCID and in order to safeguard Minister Harrison’s involvement in the fuel fraud, under the instructions of Tissera, the NLDB board decision was taken,” sources claimed.
By letter dated December 9, 2013, Additional Secretary (Finance and administration), Ministry of Livestock and Rural Community Development H.L. Tissera had instructed the then Chairman NLDB to supply fuel to the vehicles used by the Minster and his convoy during their official visists to Nuwara Eliya and Polonnaruwa. The letter further states as thus, ‘The Hon. Minister is expected to tour Nuwara Eliya on December 9, 2013 and Polonnaruwa on December 10, 2013. As the ministry is not able to supply fuel for the vehicles the Minister and his convoy is travelling, please make arrangements to supply fuel for these vehicles. Send the invoices to me to reimburse the money’.
All attempts taken to contact Tissera for a comment on his involvement in financial frauds during the previous regime and even under the good governance administration failed as there was no response from him.
When contacted Chairman National Livestock Development Board Prof. H.W. Cyril to find out as to why he disobeyed the guidelines of the Department of Public Enterprises, he said that it was the Rural Economic Affairs Minister who wanted him to pay money for the fuel and get it reimbursed from the Ministry and contradicting his own statement said it was the Ministry Secretary that instructed him to pay for Minister and his staff travelling costs for the farms and get it reimbursed.
“We have sent all the bills to the Ministry by now and we were told that we will be paid this money within two weeks. If you think that I am lying I will show you the paying slips within a fortnight,” Cyril said.
When asked as to why he overruled guidelines issued by the Department of Public Enterprises, that clearly states that not only any public enterprise is permitted to incur expenditure on behalf of the line ministry but also not to deploy human resources for any work for the line ministry, H.W. Cyril wanted this newspaper to ask it from the Minister rather than asking him these questions. “Get the answer you need from the Minister,” Cyril said and disconnected the telephone conversation abruptly.
Meanwhile Secretary Ministry of Rural Economic Affairs Renua Ekanayake refuted the allegations and said that she has never instructed Chairman NLDB to pay the Minister’s fuel bill or to allocate a monthly allowance for the Minister’s fuel.
“At all audit and management committee meetings I have clearly informed the Chairmen and other higher officials to follow the Department of Public Enterprises guidelines and never to violate them. After taking an unlawful board decision, it is easy for the Chairman NLDB to put the blame on to me. Although he has told that this ministry will be reimbursing the fuel bills, we have not given such a assurance and we will never do it. There is a separate vote for the Minister and his personal staff and it is from that money the minister and his staff has to utilize the funds not from any department that comes under the minister,” Ekanayake added.
Comments by Minister Harrision
Minister Harrison when contacted said that there is nothing wrong in allocating funds for his official vehicles as he visits NLDB farms all over the country very often. “Unlike during the previous regime when Minister Arumugam Thondaman had obtained millions of rupees from the NLDB illegally, the present board of directors allocated funds for fuel after getting board approval,” Minister Harrison said.
When asked whether he knows that the Department of Public Enterprises of the Finance Ministry in their guidelines had clearly stated that public enterprise are not permitted to incur expenditure on behalf of the line Ministry, Minister Harrison said that it is the Board of Directors who can take decisions but not any other Department. “No one can decide on what the institutions that comes under any ministry should follow. It becomes legal if the approvals are granted by the Board of Directors,” Harrison added.