According to a statement issued by the Department of Government Information, the suspension was carried out in response to complaints currently under investigation.
The statement further noted that a Grama Niladhari officer allegedly connected to the incident has also been transferred to another division to support the inquiry process.
Authorities confirmed that a formal investigation into the allegations is now in progress.
Residents in several areas of Monaragala had earlier accused certain officials attached to the Monaragala Divisional Secretariat of engaging in fraudulent activities during the distribution of disaster relief compensation.
According to the complaints, some officials allegedly demanded commissions from beneficiaries in exchange for releasing compensation payments and pressured recipients to hand over part of the funds received.
One resident has specifically alleged that a Disaster Relief Services Officer forcibly obtained Rs. 100,000 from her compensation payment.