Defence Hq project continues?

MoD blocks Sunday Observer’s entry:

Corruption probe begins:

by Dhaneshi Yatawara

A special committee may now be probing the scandal-hit multi- billion rupee Defence Headquarters construction project but construction work seems to have resumed despite the earlier ordered work stoppage.

The Sunday Observer’s efforts to learn the truth by visiting the project site is, however, blocked by the Defence Ministry’s persistent refusal of entry.

The government earned Rs.19.9 billion when CACTIC – Shangri La purchased the old Army Headquarters land. The money was to be used to construct the defence complex.

“A portion of this money had allegedly been deposited in a separate account under a top government official.

Depositing money in the consolidated Fund is what should have been done following the law of the land,” said Finance Minister Ravi Karunanayake.

“The exact cost of the project was not given in any of the project documents. Therefore, a committee had to be appointed to ascertain the exact position of the project,” he said. The services of a private audit firm would be sought on the recommendation of the Auditor General, he said.

“There were only two Cabinet papers presented during the previous government on the project - one on the money released from the CACTIC-Shangri La purchase for the construction project and the other, on paying the architectural firm 2.5 percent of the total cost which is Rs. 50 billion,” Minister Karunanayake said. Having first granted the Sunday Observer’s request to enter the project site in Pelawatta, the Defence Ministry later withdrew permission. “It is regretted to inform that the approval given cannot be accommodated at this juncture. A fresh date for the requirement will be notified later”, the Ministry letter said.