Tuesday, 19 November 2019 05:58

Neville Fernando Hospital‘s asset transfer still on the way

The assets of Dr. Neville Fernando Hospital in Malabe has not yet been taken over by the government, says the Director-General Finance and Accounting of the Ministry of Health sources. 

The government has allocated nearly Rs 182 million for the functions of the Neville Fernando Hospital so far during this year.

It has been revealed that state funds have been allocated for the Dr. Neville Fernando Hospital without bringing it under the government’s purview.

The ownership of the hospital premises belongs to the Urban Development Authority,

Considering the Cabinet Memorandum that proposed : to reach an agreement for transferring the physical possession of the buildings including the properties belonging to Dr. Neville Fernando Sri Lanka – Russia Friendship Teaching Hospital in Malambe, to the Government of Sri Lanka on a sublease for a period of 10 years.

This was valid until a loan of Rs. 1,013 million obtained by a private institution from a state bank for the establishment of the Hospital is repaid, the ownership and legality of the said properties should be retained with said private institution ; and , once the loan is settled in full, the ownership of the Hospital along with all the properties should be transferred to the Government of Sri Lanka,

Approval of the Cabinet had been granted on 05 July 2017 so as for the Government to take over the Hospital.

Even after a period of 2 years since the Cabinet approval had been received, a sublease agreement had not been entered into in order to vest the physical possession of buildings and properties of the Hospital with the Government.

However, the Ministry had spent a sum of Rs. 583 million on the settlement of revenue expenditure of the Hospital relating to the period from 01 August 2017 to 31 December 2018 ,an audit inspection revealed.


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