News
Rishad again bypasses Treasury, seeks funds from more countries
View(s):Industry and Commerce Minister Rishad Bathiudeen who recently secured US$ 1 million (Rs 130 million) after a direct call for funding from Pakistan has also approached other foreign governments for money. The Minister has written to Bahrain, Saudi Arabia and Kazakhstan requesting funds to resettle displaced Muslims in the Northern Province, authoritative sources said. This is despite clear Finance Ministry instructions that foreign project funding must only be canvassed through its External Resources Department (ERD).
According to the ERD, there are two ways to secure funding for projects. One is by export credit which is channeled through Exim Banks in various countries and requires Cabinet approval. The other is for ministries to seek funds through the ERD. The mandate for engaging with development partners lies with the Finance Ministry and is conducted on the basis of an annual needs assessment. Line ministries are required to forward their project proposals to the Department of National Planning for evaluation. Once approved, the Department decides whether local or foreign funding is required for implementation. If there is a foreign component, it submits the proposals to the ERD.
The accepted procedure is for the ERD to then forward the approved projects to various development partners for consideration. But in 2013, Minister Bathiudeen approached Pakistan’s Prime Minister Nawaz Sharif to get assistance for a housing scheme for Muslims in the North. Prime Minister D.M. Jayaratne assisted him to forward a written appeal to Premier Sharif through Pakistan’s High Commissioner in Colombo.
The Jathika Hela Urumaya and the Janatha Vimukthi Peramuna were among the parties which objected to this violation of protocol and standard procedure. This week, Minister Bathiudeen confirmed to the Sunday Times that he had directly approached some governments for grants to resettle internally displaced Muslims.
The Minister said, however, that funds –including the money from Pakistan – were not channeled to him or his ministry. “Not even one rupee came to me or my ministry,” he said. “The US$1 million that Pakistan donated and the US$ 200,000 that Kazakhstan donated went to the Treasury which channeled it to the Ministry of Economic Development for implementation. Bahrain also helped.”
Minister Bathiudeen said there was nothing wrong with him asking for assistance on behalf of the displaced. “We did not say give the money to us,” he said. “We asked for help through the Government. I have the right to highlight the problems of people.”Economic Development Minister Basil Rajapaksa confirmed that the funds were received by his ministry through the Treasury. He also said many other ministers were making direct requests to foreign governments for funding.
“There is no barrier to making a request,” the Minister said. “The initiative for a project can be taken by various interested parties and ministries. But finally the Finance Ministry and Cabinet sign the agreement and the relevant ministry handles implementation.”“Sometimes the Northern Province also makes a request,” he said. “Sometimes Minister Arumugam Thondaman makes a request if it is for the upcountry. Similarly, ministers from the Eastern Province make requests if it is for that area. But the money finally has to come to the ERD which decides which ministry is relevant to the project.”