Apr 27, Colombo: The Auditor General of Sri Lanka has said that the accumulated losses of the Urban Development Authority (UDA) since 2006 till 2011 amounted to over Rs. 1 billion.
A report submitted by the Auditor General on the authority responsible for urban development in the country to parliament has revealed the accumulated losses amounted to Rs 1.23 billion during the five year period.
The report has stated that even though the UDA had realized a profit before tax of Rs. 242 million in 2011, the profit was due to a receipt of Rs. 532 million from the General Treasury.
The UDA Chairman in response to this observation has said that despite the continuous losses incurred by the UDA from 2006, it has been able to minimize the net loss in 2010 in comparison to 2006, and to reduce the Administration and Operational cost by a large amount, and generate a profit at the end of 2011, by improving the income through the implementation of proper Administration in the Authority within 2011.
The Auditor General has also noted of several other financial losses running into millions of rupees incurred by the UDA over the years.
In one instance, the UDA had issued debentures amounting to Rs. 10 billion redeemable in five years, in October 2010, with a view to obtaining funds for the national programme, on the construction of 60,000 permanent houses for shanty dwellers in Colombo City, local newspaper Sunday Times reported.
The Auditor General has added that even though the Authority had been informed by the Attorney General in writing, that the UDA was not authorized to establish a company for managing rest houses. The Authority had established a company named UDA Rest House, exceeding its legal powers.
The Auditor General has also said that no action had been taken to pay Rs. 406,483,000 to a Company on behalf of the "Waters Edge Hotel", which was vested in the Authority in 2008, according to a Court decision.