The Department of Co-operative Development under severe political pressure has failed to recover outstanding loans and interest granted to co-operative societies during the Rajapaksa regime.
Theses cooperative societies are still managed by members of Sri Lanka Podujana Party headed by Mahinda Rajapksa.
According to a recent government audit query, loans totalling Rs.818.62 million had been granted to co-operative societies by the Co-operative Development Fund and Co-operative Surplus Fund.
These funds are coming under the purview of the Department of Co-operative Development and out of them, loans and interest thereon amounting to Rs.618.01 million and 208.94 million respectively had been outstanding by 31 December 2017.
Only loan installments and interests thereon amounting to Rs.1.73 million and Rs.9.06 million respectively had been paid by societies who had borrowed money in the year under review (2017/2018).
The Department of Co-operative Development had not taken adequate measures for the recovery of outstanding loans and interests thereon.
Even though it had been mentioned according to the Action Plan that loans amounting to Rs.20 million are granted, loans had not been granted to any co-operative society after July 2015.
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