• NAO proposes action be taken to recover monies

The Treasury has channelled billions of rupees out of the accounts of Samurdhi – the social welfare scheme – for various government activities over a period of 17 years and has failed to reimburse the funds despite continuous reminders sent by the authorities, the National Audit Office (NAO) reveals in a report. 

In its latest audit report on the Department of Samurdhi Development, the NAO has revealed that the funds allocated by the department as payments for Samurdhi beneficiaries and the funds retained by Samurdhi banks as compulsory savings amounting to Rs. 47,653,794,136 have been obtained for various activities of the Treasury on six occasions between 2004 and 2021. 

The NAO also noted that the said amount had not been refunded to the respective Samurdhi banks and funds even by the end of December 2021.

It was also revealed that although repeated requests had been made to the Treasury to reimburse the funds, they had not been reimbursed up to the date and the NAO has suggested action be taken to reimburse the full amount.

Samurdhi history

Based on a countrywide survey conducted in 1995, families with a monthly income of less than Rs. 1,000 were identified to be eligible for Samurdhi benefits. During 1995-2012, the register of Samurdhi beneficiaries was revised under the approval of the Divisional Secretary upon recommendations of the Samurdhi Manager in charge of the division through the Samurdhi Development Officer. 

Based on the criteria of said revisions, such as a member of a Samurdhi beneficiary family going abroad for employment, gaining employment in the Government sector, increasing the income, receiving a pension, furnishing misinformation, and addiction to liquor and gambling, the Divisional Secretary was vested with the authority to either suspend or cancel the benefits.

Until the conclusion of the countrywide survey on low income families, the inclusion of new beneficiaries has been suspended since 2012. The register of Samurdhi beneficiaries has been revised only in instances such as the demise of a member of a Samurdhi beneficiary family, marriage, new birth, and change of the division. Later, the beneficiary families were again surveyed from 2015-2017. However, the results thereof have not been implemented.

In accordance with the rules and regulations, every Samurdhi beneficiary is required to contribute to compulsory savings with the objective of encouraging the beneficiaries to save in view of future prosperity. The compulsory savings can be made use of in instances such as an urgent requirement, hospitalisation, or higher educational requirements.

Samurdhi statistics 

According to available Government statistics, the value of the savings invested as at 31 December 2016 amounted to Rs. 16,142 million and a sum of Rs. 136 million from this constitutes long-term investments (purchasing shares of the Pan Asia Bank in 1990). The balance has been invested in short-term instruments at State banks. 

Since the inception of the Samurdhi programme, 1,074 Samurdhi community banks have been established countrywide whilst 332 bank societies have been established at the Divisional Secretariat levels with the objective of conducting the programme by maintaining community relationships at the village level.  

As highlighted by the NAO, the Samurdhi programme had been implemented for the purpose of totally eradicating poverty based on units of families by using development projects, upgrading social and economic living standards, and by directly contributing youth to development activities.

According to the department’s statistics, the number of Samurdhi beneficiaries stood at 1,760,865 by April 2022 and Samurdhi subsidies of Rs. 337,645 million have been spent within the nine years from 2013-2021. 

According to the audit test checks conducted for 13 years from 1994-2011, 593,169 Samurdhi beneficiaries had been receiving subsidies for up to 27 years by 2022.

Poor implementation of policies

As observed by the NAO, although policy planning decisions had been taken from time to time by the governments that assumed office since the establishment of the Samurdhi programme to empower beneficiaries socially, economically, educationally, and spiritually so as to eventually remove them from the subsidies programme, those decisions had not been implemented due to periodic government changes. 

Therefore, there are a large number of families that have been receiving subsidies for a long time.

The audit report further stated that there had been no proper methodology to periodically follow up on the income level of beneficiaries to remove those who had reached a high level of income or to enter new beneficiaries into the Samurdhi programme.

– By Maheesha Mudugamuwa