Building for rent to ministry of agriculture at an exorbitant Rs 95 billion

Building for rent to ministry of agriculture at an exorbitant Rs 95 billion 

The auditor general has queried for a colossal transaction involving the minister of agriculture for signing an agreement to acquire a building on rent to the ministry of agriculture.This lease

agreement had been signed when an own building could be easily constructed on a land one hectare in extent is owned by the ministry of agriculture in the Battaramulla area.

The monthly rental for the proposed building is Rs 1,50,75000/-( Rupees one billion fifty lakhs and seventy five thousand). A payment of Rs 95,80,00,000/- (Rupees ninety five billion and eighty million)has been paid to the owner after the signing of the lease agreement.

There have been suspicion that had risen as the amount paid for a square foot area had been Rs 167/50 which is well above the government stipulated rate of Rs 150/ per square foot.The audit report had specified that a sum of Rs 17/50 had been paid over the standard government rates.It had also been stated in the lease agreement that after three years there would be a 15% increase in the rent and 24 months advance payment would be requires to extend the lease agreement.

With all these drawbacks the cabinet paper presented by the minister of agriculture to the cabinet committee has been approved on the 02nd of March.