ACAC ALLEGES FRAUD WHEN DISBURSING RS.4.5 BN HELD AT NITF

The funds may have been misappropriated, resulting in the delay in paying compensation to farmers whose crops were devastated by the prolonged drought

All Ceylon Agrarian Congress (ACAC) National Organiser Namal Karunaratne said the disbursement of funds amounting to some Rs.4.5 billion -- collected by way of cultivation taxes and held in the National Insurance Trust Fund (NITF) -- was questionable.

He urged the Finance Ministry to investigate the system adopted when disbursing the funds.

Mr. Karunaratne told the media that he suspected the funds to have been misappropriated, which might have been the reason for the delay in paying compensation to farmers whose crops were devastated by the drought. He said the news conference was convened to create and awareness on the delay in paying compensation and the irregularities in the fertilizer subsidy. “The government responded positively to our request to pay compensation for crop devastation caused by the prolonged drought. However, the monthly payment of Rs.10,000 for four months is not adequate. They deduct Rs.1350 as a contribution to an insurance fund. In several areas no compensation has been paid. Although farmers contribute to the Insurance fund they have never received any dividends. Meanwhile, how they spent the funds amounting to Rs.4.5 billion is a mystery, which the Finance Ministry must probe and reveal to the country.

A contribution of one per cent of the annual profits of state and private sector business establishments were levied for the Cultivation Tax Fund, a branch of the National Insurance Trust Fund set up under the 2013 budget. The fund had a balance of Rs.6 billion as at this year. However, trust fund officials claim that only Rs.1.5 billion is available to pay compensation for crop devastation,” he said.

All Ceylon Agrarian Congress Representatives Susantha Kumara Navaratne and Sunil Jayaweera addressed the media conference.