Startling revelations emerged during the recent Parliamentary Committee on Public Enterprises (COPE Committee) meeting, shedding light on questionable practices within the Housing Development Authority. The COPE Committee disclosed that the authority had disbursed housing loans totaling over 10000 million rupees in 2011 without requiring any guarantor, leading to concerns about financial stability.

In addition to the eyebrow-raising loans, the committee also uncovered that the Housing Development Authority had needlessly recruited a significant number of employees in 2015. A staggering 5,296 trained workers were reportedly hired during this period, raising questions about the rationale behind such recruitment practices. Furthermore, it was disclosed that the authority had disbursed over 2140 million rupees as wages to these employees.

The financial health of the Housing Development Authority has also come under scrutiny, with the revelation that the authority has incurred a loss of 500 million rupees (50 crore rupees) over the past five years.

Rajiv Suriyarachchi, Chairman of the National Housing Development Authority, spoke about the loans provided in 2011, emphasizing that approximately 1,000 million rupees (100 crore rupees) were extended under the guise of "tribute." Suriyarachchi highlighted the precarious situation created by these loans, as the authority's accounts are now burdened by their repayment. Providing such loans without adequate safeguards has had detrimental consequences for the authority's financial stability. He expressed concerns over the necessity of imposing charges amounting to nearly 960 million rupees and questioned how the authority could operate profitably in such circumstances.

It was further revealed that a significant portion of the loans was directed toward individuals in the Hambantota district, while most of the hired workers were also from that region. Additionally, the data suggested that, in 2011, a substantial number of loans were granted to residents of Monaragala, Kalutara, and Colombo.

The Parliamentary Committee on Public Enterprises convened on the 17th of this month at the Parliament complex, under the chairmanship of Prof. Ranjith Bandara. The disclosures made during this meeting have raised concerns about the financial practices and decision-making within the Housing Development Authority.