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Ex-UDA DG, ministry trade accusations over removal of former
View(s):By Sandun Jayawardana
Former Urban Development Authority (UDA) Director General Prasad Ranaweera claims he was removed from his post as he refused to sign off on releasing funds belonging to the UDA in violation of finance regulations.
The Ministry of Urban Development and Housing said this week that Mr Ranaweera was sacked on disciplinary grounds by subject Minister Prasanna Ranatunga using the powers vested in him under Article 13(1) of the UDA Act.
A media release, quoting Ministry Secretary W S Sathyananda, claimed that Mr Ranaweera was sacked after he behaved in an unruly manner during a discussion held on July 4 on the progress of awarding title deeds to the owners of 50,000 flats in Colombo. The programme to award these title deeds to flats given to low-income families is a major Government project, and about 8,000 residents of flats owned by the UDA are due to get their title deeds under the programme.
Mr Sathyananda’s version, released by the Ministry, stated that during the discussion, it was noted that the awarding of the title deeds was being delayed as the funds approved by Cabinet to pay for stamp duties and notary fees had not been released. Mr Sathyananda states that though he pledged to secure the funds as the Chief Accounting Officer of the Ministry, the ex-DG did not agree to this and got into an exchange of words with the minister, prompting him to ask the ex-DG to leave the room. The Ministry subsequently put out a statement that the Treasury had agreed to release Rs 515 million to pay for stamp duties and notary fees for the title deeds.
Mr Ranaweera, though, said the disagreement arose because Minister Ranatunga asked him to pay the stamp duties and notary fees from UDA funds rather than wait for the Treasury to release the funding. The total amount needed to pay for the stamp duties and notary fees for the first batch of 1,500 title deeds was Rs 345 million. “I said I can release the funds but I needed approval from the UDA’s Director Board. Prior to that, I said I needed a written undertaking from the Treasury that the funds will be released,” he told the Sunday Times.
The ex-DG said such an undertaking was necessary as the UDA had already prepared its budget for the entire year and had maintained its fixed deposit accounts accordingly. “If we had to suddenly close a fixed deposit account that is due to mature next year in order to release these funds, we would lose the income that we had budgeted we would receive from that account. We rely on these accounts to pay the salaries of our employees. We have 1,600 staff in our employ. How are we to pay their salaries then?”
Mr Ranaweera said he was willing to utilise UDA funds to pay for the duties and fees, but had been emphatic that he needed the Treasury’s written undertaking to reimburse the UDA. “I am fully supportive of the programme to provide deeds for these flat owners, who have suffered for years owing to not having a title deed. But we need to follow established procedure.”
While the Ministry Secretary said he will secure the funds, Mr Ranaweera said he needed a written undertaking from the Treasury and a verbal pledge would not do. Mr Ranaweera claimed that Minister Ranatunga brushed his request aside and demanded that he either release the funds from the UDA or leave.
Mr Ranaweera, who has been removed as DG, claimed his removal was illegal as in the UDA Act there is no procedure to remove the Director General. He said he intends to file legal action.
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