News
Funds for road construction misused
Pictures show ill-planned road projects that have been started and stopped midway
Loans obtained by the Road Development Authority (RDA) for rural road projects during the previous government had been misused for non – road construction projects including payment of foreign loans and Highways Ministry payments, an audit report has revealed.
The report specifically covered the renovations relating to the stretch between Kadawatha and Nittambuwa on the Colombo – Kandy Road, the Anguruwella – Karawanella road in Warakapola the Meepe – Ingiriya Road and parts of the Avittawa – Lechchanduwa Road from Nagoda junction to Neboda.
The report revealed that contractors had been paid nearly 90 per cent of the contracted amount at the commencement of work and when contractors delayed construction the RDA continued to pay interest on loans obtained.
In one of the projects undertaken for the renovation of the Meepe – Ingiriya road project the tender had been awarded violating procedures. Subsequently, after the award of the contract the Bill of Quantities had been changed and payment made, but no approval had been obtained.
The investigation found that the contractor had failed to keep to the specifications of the project and thereby culverts, bridges, parapet walls and covering slabs had not been constructed to proportion. Photographic evidence has been included in the report.
On the Meepe – Ingiriya project, the report found that though the roadway should be of 10 metres width, the actual road with was only 8.8 metres and thereby 1.2 metres less.
The RDA had filed action against the contractor over the shortcomings in the project. 
On the Kadawatha to Nittambuwa stretch of the Colombo – Kandy road also several shortcomings were found. Among them was the failure to acquire the required land for the project thereby delaying the project. As a result the company could not be penalised for delay in completing the project as the authorities had delayed in acquiring the land for the contractor to start construction in time.
A loan had been obtained from the National Savings Bank (NSB) to complete 23 kilometres of this stretch and Rs. 6,956 million had been spent but only Rs 5,350 million paid to the contractor while the rest of the money had been spent for other purposes. The completion of the project had thereby been delayed forcing the RDA to raise additional funds to complete the project.
In this project too there were issues over the Bill of Quantities while the failure to complete drains and culverts and failure to remove advertising boards were among other issues.
The report revealed that a loan amounting to Rs. 55,392 million had been obtained from the NSB for 28 road construction projects,Some of these funds had been used for other purposes including for improvements to the Provincial Director’s office. The monies had also been illegally used for Maga Neguma projects and for other projects which do not come under the purview of projects carried out by obtaining loans from local banks.
The audit report also reveals that loans had been obtained from local banks beyond the required amounts and thereby additional interest amounting to Rs. 466 million had been paid.
The report noted that the safety aspect was not satisfactory in the renovation Galigamuwa-Karawanella –Ruwanwella stretch of road. 
The RDA had obtained loans up to to Rs. 151 billlion with the highest from the NSB amounting to Rs. 54. 7 billion.
Finance Minister Ravi Karunanayake told the Sunday Times that it is hoped to hand over investigations to the Financial Crimes Investigations Division as the loans had been heavily misused including for paying of foreign loans.
‘They have not been constructing roads, but paying back loans which have now turned out to be a burden to the government,’ he added.
