News
NAO exposes tender fraud at KMC car park developed with World bank funds
View(s):By L. B. Senaatne
The National Audit Office (NAO) has highlighted fraud in the tender for the Kandy Municipal Council car park ‘Sasa Uyana’, which was built with World Bank funds of Rs 513 million.
In a report, the NAO sought answers to questions raised regarding the tenders within seven days of their letter dated May 16, but answers have yet to be received.
The audit also found that the KMC appeared to give tenders to one party, and this needed to be investigated.
The NAO has found that the tender for this upper floor, which also houses 100 trade outlets, was for a 15-year occupation, which is against the norms of any tender. The audit report sent to the KMC points out that while the Council has a right to call for tenders and offer them, under Municipal Ordinance Section 40(1)(e), the approval of the subject minister is needed, and in this case, it had not been obtained.
At a recent press briefing, the Organisation for the Protection of Public Property President Anura Gonawela (former KMC Councillor) said no answers have been forwarded to the NAO yet. The organisation called on the KMC to cancel the tender and call for fresh tenders if the municipality cannot manage this project built with World Bank funds.
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