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Thursday, October 04, 2012 - 6.30 GMT
Provincial Councils endorse proposed Divi Neguma Bill


The majority of Provincial Councils have shown their support for the government's plans to establish a new department by combining several currently existing poverty alleviation agencies.

Government's proposed Divi Neguma Draft Bill to establish the new Department of Divi Neguma Development has been presented yesterday to three other provincial councils for approval.

The Bill was presented to the North Central, Sabaragamuwa and Southern provincial councils for debate. Southern Provincial Council passed the bill with a majority of 11 votes and the Sabaragamuwa PC passed it with 15 votes and North Central with 7 in favor.

The Divi Neguma Department Bill proposes the establishment of the new department by amalgamating the Samurdhi Authority, Southern Development Authority and the Udarata Development Authority to better achieve the grassroots economic development and alleviate poverty.

The Minister of Economic Development Basil Rajapaksa presented the Divi Neguma bill to parliament on August 10.
The Supreme Court deciding on the constitutionality of the bill informed the parliament that the bill cannot be approved in the legislature without being sanctioned by provincial councils.

Following the Supreme Court directive the government presented the bill to the eight functioning provincial councils and to the governor of the Northern Province where the PC government is not yet established after the end of the conflict.

The Western, Eastern, Central, Uva and North Western PCs have already endorsed the Bill and the Governor of the Northern Province has given approval on behalf of the Northern Provincial Council.

The draft bill passed in the Western PC with a majority of 40 votes with 64 votes in favor and 24 against. The Eastern Provincial Council yesterday passed the bill with a majority of six votes with 21 members voting in favor and 15 against.

The Central Provincial Council passed the Bill with a majority of 19 with 36 votes in favor and 17 against.

The new Divi Neguma Department will absorb all the officers and employees of all the development authorities including more than 27,000 Samurdhi officers. All employees are eligible for pension.

In addition the Bill will make provision to establish Divi Neguma Community Based Organizations at rural level and to provide for a coordinating network at the district level and national level.

Continuing the economic development process according to the national policy of alleviating poverty and ensuring social equity, the Bill proposes establishing Divi Neguma Community Based Banks and Divi Neguma Community Based Banking Societies to build regional, district and national level coordinating network and developing and promoting a micro-finance banking system.

All Samurdhi Development Banks will be converted into Divi Neguma Development Banks under the new department.

The Bill will be taken up for debate and approval in the parliament following the approval of all provincial councils.





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Last modified: October 04, 2012.

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