Exposé

Watchdog accused of misappropriation

By Mandana Ismail Abeywickrema

Former Convenor, Free Media Movement, journalist and self-proclaimed media activist, Sunanda Deshapriya is at the centre of an unfolding scandal – investigated for serious misappropriation of finances given to the Free Media Movement (FMM).

The Sri Lanka Press Institute (SLPI) has called on the FMM to return a sum of Rs. 3 million. Following an internal audit conducted by the SLPI the FMM stands accused of having fiddled monies from a ‘Safety Fund.’ This fund was set up by donors to fund the safety of journalists under threat.  An initial Rs. 4.2 million was released by the SLPI for this purpose.

The period under a cloud is between May 2008 and October 2008.  The audit conducted by the SLPI has found that a total sum of Rs. 620,790.46 have been used in “unacceptable transactions” during this period. Additionally, the SLPI has demanded the return of another Rs. 2.2 million originally released to the FMM towards the protection of journalists under threat.

The current Convenor of the Interim Committee, FMM, Chulawansa Srilal said that the misappropriation of monies had taken place during the tenure of the previous committee.

When asked as to the exact amount that has been allegedly misappropriated by the FMM, he said the amount could be higher or even lower than that highlighted by the SLPI audit.

Separate investigation

“The SLPI has given a figure and the FMM is also conducting a separate investigation to verify the amount that has been misappropriated. The amount can be higher or lower than that given by the SLPI,” Srilal said.

The SLPI on a letter dated March 21, 2009 signed by its Chairman Kumar Nadesan to the Convener, FMM has called for the return of the Rs. 2,283,679.34 from the Safety Fund account and has also queried about several payments made by the FMM utilising monies from the Safety Fund.

The Safety Fund was created for the protection of journalists in 2007 and is administered by the SLPI, but handled by a steering committee which approves the release of money for projects related to the security of journalists.

The first steering committee comprised representatives of the Fojo Institute for Further Education of Journalists, International Media Support, Director General of SLPI, Sunanda Deshapriya representing civil society and later retired civil servant and diplomat Lionel Fernando.

This committee had reportedly approved a proposal from FMM for a project worth Rs. 8.2 million to provide safety training for journalists, among other things. Half the proposed amount, around Rs. 4.2 million was released to the FMM bank account in May 2008.

In return, the FMM had agreed to provide the SLPI with financial and narrative reports and original receipts every six months. The first report was due by October 31, 2008. The receipts, financial and narrative reports however had not reached the SLPI by October 31, 2008 despite repeated reminders.

Awaiting report

Kumar Nadesan in fact told The Sunday Leader that the SLPI is yet to receive the required report. Neither have they returned the remaining Rs. 2,283,679.34 he said. “This amount has to be there and should be returned. If the amount is not there, then there has been a massive misappropriation of funds,” Nadesan said.

He added that the FMM would also have to return the monies that have been transacted in an unacceptable manner according to the SLPI audit report.

Nearly two years after he accepted the appointment to the steering committee, Deshapriya had resigned from the committee last year citing conflict of interest (as he was both a member of the FMM and the committee).

The audit conducted by the SLPI has raised questions on the manner in which transactions amounting to Rs. 620,790.46 had taken place from Safety Fund monies under Deshapriya’s supervision between the period of May 2008 and October 2008.

The SLPI following the audit has called for the reimbursement of Rs. 50,000 and Rs. 66,000 used for security and advance payment for “safety houses” for Poddala Jayantha and Sanath Balasuriya respectively. The auditors have also highlighted several payments where the bills and invoices provided have either been altered or were completely false.

Referring to the expenditure of Rs. 50,000 for a door intercom, the audit has observed that the company tasked to install the system did not exist at the address mentioned in the company letterhead used to give the quotation.

Another bill for Rs. 51,334.46 for food items purchased from Cargills Food City in Maradana and Arpico, had been altered and date torn off while some bills have been claimed twice.

Rent query

The audit has also highlighted that the Rs. 75,000 spent as office rent for the months of August, September and October was a violation of the agreement.  In addition to claiming Rs. 25,000 per month from the SLPI towards rental, the FMM during this period has also received Rs. 50,000 per month from other donors, namely Internews, International News Safety Institute and the Norwegian Embassy as office rent for the same premises. This is despite the fact that the office rent per month for the building housing the FMM is only Rs. 40,000.

In the month of May 2008, a sum of Rs. 40,000 has been recorded as “coordinator salary” released without a payment voucher or any acceptable document.

The SLPI audit has also noted that Rs. 43,130 spent as traveling expenses were payments made for election monitoring by the CMEV, which is a non related expense. Also, Rs. 55,476 spent for a safety course paid to the ‘Distance Learning Centre’ has not been supported with a list of participants with signatures as required by the agreement.

Apart from the transactions stated above, the auditors have also highlighted irregularities that have taken place when purchasing a laptop computer, payment of petty cash vouchers, overhead expenses, journalist support payments, printing of postcards, payments and double payments made to certain individuals, payments made to journalists’ families, mobile phone charges and payments made to Lanka e-News (news website).

Donors informed

The SLPI letter highlighting these financial irregularities has been copied to the donors of the project, the Royal Norwegian Embassy, Swedish Embassy, Foreign Affairs Ministry of Denmark, IMS and Fojo.

While the SLPI audit has clearly revealed the irregularities and the misappropriation of monies belonging to the Safety Fund, neither Deshapriya nor the FMM has responded to these allegations.

The FMM, which is currently under an interim administration, maintains that a separate investigation into the allegations was being conducted and the exact amount allegedly misappropriated from the Safety Fund would be known only at the conclusion of the said investigation.

Meanwhile, the FMM AGM is scheduled to be held on Tuesday (26) and a report on the findings of the investigation are to be presented at the meeting.

The SLPI meanwhile stands firm in its call for the return of the remaining monies of the Safety Fund and the Rs. 620,790.46 used for “unacceptable transactions.”