posted November 12, 2005 08:46 PM            

Colombo, 04 August, (Asiantribune.com): President Chandrika Kumaratunga wants the funds deposited in Prime Minister Mahinda Rajapakse’s controversial Helping Hambantota account to be transferred to the National Fund for Disaster Relief account at the Central Bank. She has instructions to this effect within days of naming Rajapakse as presidential candidate of her Sri Lanka Freedom Party (SLFP).

Although initial inquiries indicated that Prime Minister cannot be accused of any fraud by depositing Rs 83 million received for tsunami assistance into a new account created to help his electorate Hambantota, his southern electorate which was badly affected by the Boxing Day tidal wave, the opposition continues to raise the issue. Political sources believe that Kumaratunga’s action may further strengthen the opposition campaign.

According to reliable sources, Secretary to the President W.S.Karunaratne has written to the Prime Minister's Secretary Lalith Weeratunge instructing the transfer of funds. "I wish inform you that all monetary donations received for tsunami rehabilitation should be remitted to the National Fund for Disaster Relief account at the Central Bank of Sri Lanka. I am directed by the President that if the Prime Minister wishes to implement any special project under the tsunami rehabilitation program, request may be made for release of funds from the above account for any such project," the letter stated.

Recent newspaper reports said that Helping Hambantota account was created without cabinet approval and the address of the account holder given to the bank was the address of Rajapakse’s sister’s house at Nugegoda, a Colombo suburb. However, prime minister’s brother Gotabhaya Rajapakse denied the report.

Earlier, the opposition United National Party (UNP) lodged a complaint with the Criminal Investigation Department (CID) against the prime minister accusing he has opened a private account with the funds obtained from tsunami aid.

UNP parliamentarian Mahinda Wijesekera said cabinet has not approved this controversial fund initiated by the prime minister. “Prime Minister has promised to debit all the money received as tsunami aid to the tsunami relief fund with the Central Bank. However, the fund has already been used though the Prime Minister has no right to do so", he said.

However no evidence was found to prove any misappropriation of funds. “The money is still there and nothing has been spent,” officers of the CID reported. However, the opposition continued its criticism over the manner in which the account was set up and the Rs 83 million received for tsunami relief transferred to a separate account.