The Northern Provincial Council announced yesterday that 4.3 Million has been defrauded in Nelsip Project Funds in Valveddithurai PS and Point Pedro Town Council.
A 3-member Sub Committee was appointed by the Provincial Council to look into a allegation that Rs.1,000 million has been defrauded from the NELSIP Project funds and the Sub-Committee submitted its report yesterday.
Funds were allocated under NELSIP Project for the development 79 Local Government Bodies, including 34 in the North. An allegation was raised that Rs.1,000 Million had been defrauded. This allegation was taken up for examination by the Provincial Public Accounts Group. Following that a 3- member Sub-Committee, consisting of Velupillai Sivayogan,Pasupathy Aryarathnam and Ramanathan Indrarasa was appointed by the Northern Provincial Council.
The frauds have been effected through altering figures in the Tender forms, Paying more than the market value for materials purchased and services obtained and Paying for not executed works.
Rs.1,654,500 and Rs.2,693,817 ( a total of Rs. 4,348,367) had been defrauded at Valveddithurai TC and Ponint Pedro PS respectively had been defrauded.
The committee also has reported that, the Commissioner of Local Government M.Jegoo had cooperated to pursue the inquiries on fraud and the secret and minute alterations had been done while the documents were in the custody of Project Engineer, S.Stegilatharan.
A unanimous resolution was adopted by the house to hand over the inquiry to Auditor General and to the FCID, considering the largeness of the Fraud. It was also decided that, if the officers concerned had escaped abroad to take action to arrest them through Interpol.