Investigation

Politicians main beneficiaries of President’s Fund

By Dilrukshi Handunnetti

T his Paradise Isle is known not only for its serendipitous quality but also equally famed for the extravagance of her politicians.

Not only are we saddled with a record-breaking number of ministers but we also have some politicians who would draw funds from any possible source, and this includes the President’s Fund, set up on November 24, 1978 with the holistic idea of assisting the poor and those without resources to obtain specialised services in the health and education sectors.

At the outset, let’s record that politicians are not precluded from benefiting from the President’s Fund especially for medical purposes though there are multiple schemes to make life easy for the tribe unlike the average citizen.

Besides, it is pertinent to note the objective of the Fund, which is to assist the poor and those unable to access specialised facilities in the health and education sectors with the general observation being that politicians hardly fall into that category and can hardly be described as ‘poor and unable to access specialised services.’

Key beneficiaries

However, assessing the funds disbursed during the past five years for politicians to obtain medical facilities, it is apparent that politicians have been among the key beneficiaries of monetary support to obtain medical services through this vital fund which has stringent requirements to be met and is known for being strict when releasing funds for a regular citizen.

Let’s take a look at the accounts of the President’s Fund for the past five years. Take year 2008 for example. Some Rs. 4,350,000 had been spent on just five politicians for medical treatment.

Heading the list is Sports Minister Bandula Basnayake who received a grant of Rs. 1. 5 million no less.  Former Minister Dr. Wimal Wickremasinghe too had received Rs. 1 million while a sitting member of parliament and now wheel chair bound senior politician Alick Aluvihare has received Rs. 700,000.

Another recent beneficiary was Plantation Industries Minister D. M. Jayaratne who received Rs. 600,000 whereas a Western Provincial Council Member, I. V. A. D. N. C. P. Jayawardene was the fifth beneficiary, having secured Rs. 550,000 from the President’s Fund in 2008.

Requests from politicians

According to parliamentary records, what is significant to note here is that none of the requests from politicians for financial assistance had been rejected, as recorded in the  Hansard of April 20.

In the year prior, i.e. 2007, another five politicians benefited from the President’s Fund. The biggest beneficiary that year was Minister of Rural Industries and Self Employment Promotion, S. B. Nawinna. He was granted Rs. 545,000 for medical treatment. Plan Implementation Minister P. Dayaratne too received Rs. 300,000 for medical needs while Minister of Vocational and Technical Training, Piyasena Gamage and Kaduwela Pradeshiya Sabha Member C. A. Pathberiya obtained Rs. 250,000 each for their respective medical needs.

Forget those who are in dire need of funds to undergo serious surgeries or costly treatment, there are the likes of Non Cabinet Minster of Power, Mahindananda Aluthgamage approaching the President’s Fund for sums like Rs. 50,000 and receiving it — for medical treatment.

In 2007, the Fund spent Rs. 1,395,000 on these five politicians’ medical needs alone.

In 2006, 10 politicians claimed money from the Fund, nine out of them for medical reasons.

Former Parliamentarian L. D. S. A. Gunasekera was made an ex gratia payment of Rs. 500,000 based on a cabinet decision as he fell into the category of non-pensionable MPs.

Top recipients

The top recipient was former Minister A. I. R. Gunawardena who was paid Rs. 564,000. Western Provincial Councillor Lionel Jayasinghe, ex Parliamentarians K. M. P. Rajarathna and A. H. de Silva received Rs. 500,000 each that year.

Former MP C. S. Ratwatta was paid Rs. 450,000 for medical treatment while Deputy Chairman, Karandeniya Pradeshiya Sabha, H. D. Nihal Ranjith was paid Rs. 305,826.

The President’s Fund, in 2006 made a payment of Rs. 300,000 to Mrs.V. Rajaratnam, wife of former MP V. Rajaratnam again on medical grounds.

In the same year, former Minister Mervyn J. Cooray received Rs. 250,000 while former MP, N. M. Iyoob was paid Rs. 100,000.

In that particular year, 2006, payments for the 10 recipients alone amounted to Rs. 3,969,826.

Twelve politicians claimed money from the President’s Fund, according to parliament records, in the year 2005.

Mammoth claim

Someone who has probably wiped the fund clean with his single claim is the late M. C. Gopallawa, the former Central Province Governor. His mammoth medical claim amounted to R.1, 918,470.36.

He was closely followed by the late Ediriweera Premaratne, a one time minister who was granted Rs. 898,008.11 by the President’s Fund to support his medical expenses.

Grants of Rs. 500,000 were made on behalf of four politicians in 2005 on medical grounds. They were former MPs S. B. Wijekoon, C. S. Ratwatta, D. M. Gunasekera and Amarananda Ratnayake.

Another Rs. 500,000 was disbursed, according to records, to make an ex gratia payment to non-pensionable MP,  D. G. Albert de Silva, based on a cabinet decision.

There are some surprises in the list of beneficiaries too such as Minister Sumedha Jayasena, a wealthy parliamentarian whose spouse’s claim to fame was his trading. Yet Jayasena too has received Rs. 485,000 on medical grounds which is mind boggling, given the general impression of wealth associated with the Jayasena family.

Those not in need

A former Parliamentarian C. S. Ratwatta had received Rs. 450,000 while former Western Provincial Council Chief Minister Susil Moonesinghe — by no means a man in need of financial aid — too has received Rs. 350,000 for medical reasons.

The smallest claim was made by the former Neluwa Pradeshiya Sabha Chairman, M. I. D. David — the amount being Rs. 203,960 — a paltry amount when compared with other claims made.

As for the year 2004, four politicians have claimed financial assistance from the President’s Fund and leading the list is veteran SLFP politician and former Speaker of Parliament, K. B. Ratnayake. He was allocated Rs. 746,580  for medical expenses.

Another claimant that year was former Minister Harendra Corea who was paid Rs. 300,000 for medical treatment while former Parliamentarian Tudor Dayaratne received Rs. 281,350.

Former Minister E. L. B. Hurulle made a small claim of Rs.130, 000 the same year bringing the total amount paid to politicians to Rs.1,457,930.

It is noteworthy that the paper work, the procedures involved and the time consumed to process a request for funds from the President’s Fund make it not only tedious, but a near impossible task for the average citizen. Many are those who had been rejected, unlike the politicians who have not been rejected whether they had the ability to personally fund their treatment or not.

The composition

At present, the board of governors of President’s Fund’s include President Mahinda Rajapakse (Chairman) and members, Premier Ratnasiri Wickremanayake, Speaker W. J. M. Lokubandara, Opposition Leader Ranil Wickremesinghe, Presidential Secretary Lalith Weeratunge, Secretary to the Cabinet D. Wijesinghe and Secretary to the Treasury, Sumith Abeysinghe.

Let’s look at the President’s Fund’s income possibilities which are mainly categorised into three.  The principal source is the proceeds from the Development Lotteries Board. The other two are interest received on investments and miscellaneous incomes.

While the incomes have shown a decline except in 2007, the expenditure in contrast had steadily increased.

In the year 2004, the total income of the Fund was Rs.1, 001,743,701 while the annual expenditure stood at Rs. 1,261,219,442.35.

In the year 2005, the annual income was Rs.1, 202,116,675 while the expenditure stood at Rs. 1,609,896,301.78

In 2006, the income was Rs. 976, 267,601 recording a considerable reduction, whereas expenditure amounted to Rs. 1,414,584,674.83

The next year, 2007, the income was Rs.1, 073,621,928 while the expenditure amounted to Rs. 989,480,621.18

Part of story

During 2008, the President’s Fund enjoyed a total income of Rs.920, 500,000 which included Rs.719, 000,000 from the Development Lotteries Board, Rs. 198,000,000 from interest on investments and Rs.3, 500,000 from miscellaneous sources.

While the 2008 audit is not yet completed, the annual expenditure is at present stated as Rs. 1,070,747,627.57

Politicians however are only part of the story, for this Fund was created for a larger public purpose of supporting the poor and those unable to have access to specialised facilities in the religious and education sectors.

The President’s Fund spends its funds on four identified categories. The first category is, donations made towards meeting medical expenses,  for religious, cultural, sports and welfare activities.

For these collective functions, in 2004, the Fund utilised Rs. 1,25,527,409 and in 2005, Rs.1, 772,512,034.

The total expenditure in the year 2006 was Rs. 1,313,948,274, and in 2007, Rs. 1,416,052,454.

The total expenditure in 2008 amounted to Rs.1, 134,522,291.