Samurdhi Programme under scrutiny amid financial mismanagement
Recent reports have revealed significant inefficiencies and financial mismanagement within the Government’s largest welfare initiative for the poor, the Samurdhi programme.
In response, the Ministry of Finance is working on establishing a welfare registry to ensure that vulnerable individuals receive the assistance they are entitled to, according to State Minister Shehan Semasinghe.
The current issue with Samurdhi is that many ineligible individuals are benefiting from the program, while a substantial number of low-income citizens are being overlooked.
The Committee on Public Accounts (COPA) expressed strong dissatisfaction with the lack of appropriate disciplinary actions against Samurdhi Development officials involved in misconduct and corruption.
A recent National Audit Office report disclosed that out of Rs. 5,359 million taken from Samurdhi beneficiaries’ savings for various government purposes, Rs. 5,329 million remains unrecovered.
Additionally, these funds were allocated for purposes unrelated to the Samurdhi Development Department.
The report also highlighted that between 2014 and 2018, 135 fraud cases amounting to over Rs. 110 million were recorded within Samurdhi Banks and Bank Societies, with another 92 frauds involving over Rs. 140 million occurring between 2019 and 2023.
In 2012, compensation exceeding Rs. 200 million was improperly paid on behalf of deceased department officials. Furthermore, 31 out of 59 employee loan files have gone missing due to insecure storage.
COPA has directed the Samurdhi Development Department to swiftly implement a programme to protect beneficiaries and report back with details on the funds managed by the department and the services they provide.
Samurdhi banks currently hold assets worth Rs. 400 billion, including compulsory savings deposited by recipients, which have been invested in banks and government securities.
Although there are 1,092 Samurdhi branches across Sri Lanka, they are not officially recognised as banks by the Central Bank and primarily serve as distribution points for monthly cash transfers.
There have been numerous reports of funds being stolen from these banks with the involvement of managers and Samurdhi development officers, under the pretext of providing relief to the poor.
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