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The office of President Kumaratunga has observed several erroneous reports in the press, especially the State media, that a sum in excess of Rs. 750 million had been improperly paid out from the President's Fund by President Kumaratunga.

The source of this news is attributed to the Presidential Secretariat, after assumption of office by President Rajapakse. President Kumaratunga's Office categorically denies any impropriety or wrongdoing in the allocation of grants from the President's Fund. Moreover, President Kumaratunga has no personal stake or vested financial interest in any NGO, as alleged in certain media and accordingly, a grant to a non existent entity does not arise.

The relevant facts are as follows:

President Kumaratunaga vastly expanded the scope of the President's Fund since 1994, based on a new vision and a broader outlook on humanitarian and social interventions.

The scope of grants from the President's Fund was expanded for medical treatment for critical illnesses, scholarships for public servants and their children, assistance for tertiary education and vocational training, development of places of worship of diverse religions, and support for various cultural, social and sports development activities.

Over a ten year period the number of grant recipients, for medical treatment alone, increased from 200 to over 5000, while the total grants increased from Rs. 80 million to Rs. 1000 million.

The activities of the President's Fund were conducted entirely in accordance with established government procedures and practices, with the accounts of the Fund subjects to a bi-annual audit by the Auditor General's Department. During the past eleven years not one instance of wrongdoing has been found by the Auditors against the President's Fund.

The President's Fund has at all times been staffed and led by career civil servants recruited according to Government procedure and who have at all times adhered strictly to all Government regulations.

In November 2005, in the context of President Kumaratunga relinquishing duties as President of the Republic, it was decided that outstanding matters at the President's Fund be expedited and concluded, both as a good governance measure and also to minimize delays to fund recipients due to the political transition.

The President's Fund allocates money for the public good and in the public interest and the sum of approximately R. 750 million was allocated for this purpose.

The President's Fund further expanded its scope to cover the North and East reconstruction and rehabilitation, inclusive of the "border" areas adjacent to the North and East, creating access to pure drinking water in large parts of the dry zone, and undertook development of Sinhala and Muslim villages affected by the war in the North Central Province.The President's Fund initiated two special projects in 2002;

One for the establishment of a combined cultural and sports complex in fourteen districts of the country which would provide facilities to enable essentially the rural youth to fully realise their potential and develop their talents in various cultural and sports activities.

The fourteen centres are at various stages of completion.

The second project is the National Academy for Dramatic Arts (NADA) which has the objective of creating an Academy to teach drama as well as a National Theatre Group and a meeting place for dramatists. This project comes under the purview of the Western Provincial Council.

These two projects, like all others, strictly follow government procedures, including Tender procedures.

Some of the moneys issued was for the completion of these two projects.

The false reports carried a further canard that the President gave funds to a certain North Central Province politician after a field visit by President Kumaratunga. The fact is however that on 21st November 2005, President Kumaratunga visited Anuradhapura to attend a ceremony organised by the Sangha where the four Maha Nayake Theras invoked blessings on her and bid her farewell.

Thereafter, she attended a felicitation ceremony organised by the Member of Parliament and Provincial Council of the North

Central Province, where amongst other things President Kumaratunga presented a cheque to the Provincial Council, duly written in the name of the Chief Secretary of the Provincial Council for the construction of a pilgrims rest and meditation center for 2500 persons at the Sri Maha Bodhi premises.

The entire project is handled by the Provincial Council, the State Engineering Corporation and the Urban Development Authority, in strict adherence to Government procedures.

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