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RDA in Rs 4 billion debt rut
View(s):The Road Development Authority’s (RDA) Construction division ran up nearly Rs 4 billion in unsettled bills, forcing the institution to borrow from the Bank of Ceylon to pay contractors, authoritative sources said.
“The situation arose as a result of tenders being called and awarded without sufficient imprest or financial allocation,” insiders said, criticising the “absence of proper financial management or plans for works”. “If this situation continues, construction will be interrupted and material prices will rise,” they pointed out. “Contractors are not willing to work with the RDA and suppliers do not want to supply to us.”
“Unsettled dues of around Rs 4 billion accumulated between 2017 and 2018, but many of the dues have now been settled via a Treasury-guaranteed loan from the Bank of Ceylon,” RDA Director General (DG) Rohitha Swarna confirmed.
“The RDA’s Maintenance division has run up a separate set of bills, of which Rs 1.288 billion is yet to be settled,” sources said. “The allocation for 2018 was Rs 5.38 billion,” they noted. “The received allocation up to now is Rs 2.9 billion.”
The Western Province has the largest number of unsettled bills amounting to Rs 152.8 million, followed by Sabaragamuwa Prov.- Rs 125.9 million and Central Prov.- Rs 110.8 million. The asphalt plants are also owed Rs 133.4 million.
Meanwhile, all RDA Engineers will call in ‘Sick’ on Friday, as well as participate in a picketing campaign opposite its headquarters in Koswatta, Battaramulla, to protest against “undue interference” by the Highways Ministry, in the administration of the institution.
A leaflet circulated by the RDA Engineers’ Association (RDAEA) claims that, there is unprecedented challenging of decisions of the RDA top management, including the DG. It objects particularly to the Highways & Road Development Ministry Secretary D.C. Dissanayake, saying he is “abhorred by the RDA Engineers, all officers and workers, as he is spoiling the administration…”
The Union claims there is a “shameless effort” to block young Engineers from projects, thereby stifling their professional development. There is a “subtle effort” to remove RDA workers from projects and to bring in “preferred” persons from outside- those who allegedly act as the Secretary wishes- so that, the projects are under the direct control of the Ministry.
The RDAEA has sought a meeting with Minister Kabir Hashim to discuss administration issues including the need to implement a policy of “one position for one officer”, thereby stopping all multi-positions given in the RDA and Project Management Unit. It calls for the appointment of a DG for the RDA from among the most suitable senior Engineers and not from outside, antedating permanency to the date of recruitment for 56 Engineers, salary revision and turning RDA into a profit-oriented organisation.