The CID on Sunday arrested the Finance Division head of the Tamil Rehabilitation Organisation (TRO), an LTTE front organization, in Jaffna.
He is alleged to have provided millions of rupees to the terrorist organization for its war effort.
Investigations have revealed that he provided TRO funds to slain LTTE leader Velupillai Prabhakaran, its Political Head S. Thamil Selvan, Bhanu and several key membersHe was arrested by a special team of officers in Chunnakam where he lived with his wife.
Prior to his arrest he had lived in a welfare camp in Vavuniya for a few months and moved to Chunnakam a few weeks ago claiming his wife was pregnant.
She had worked as a Samurdhi animator in Kilinochchi.
The suspect has admitted to his interrogators that he transferred millions of rupees to the LTTE accounts from the TRO funds.
Military intelligence said there were at least 10,000 LTTE combatants and activists in the IDP centres. They had crossed over to the army held terrain during the final stages of the war on terror.
Among them were family members of top Tigers including Prabhakaran's mother and father.
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