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Parliamentary Series No. 184

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Parliamentary Series No. 184 Parliamentary Series No. 184 The Ninth Parliament of The Democratic Socialist Republic of Sri Lanka (First Session) First Report of the Committee on Public Enterprises Presented on 10th day of March 2021 by Hon. (Professor) Charitha Herath Chairman of the Committee on Public Enterprises Ordered to be printed by Parliament of Sri Lanka On 10th day of March 2021 Parliamentary Series No 184 2 The first report of the Committee on Public Enterprises in the first session of the ninth Parliament of the Democratic Socialist Republic of Sri Lanka Committee on Public Enterprises Ninth Parliament (First Session) According to the announcement made by the Hon. Speaker on 11th September 2020, the following 22 Members of Parliament were appointed by the Committee of Selection in terms of the Resolution of Parliament adopted on 27th August 2020 as per Standing Order 120 (1) of Parliament to serve in the Committee on Public Enterprises for the First Session of the Ninth Parliament: 1. Hon. (Prof.) Charitha Herath, M.P. (Chairman) 2. Hon. Mahinda Amaraweera, M.P. 3. Hon. Mahindananda Aluthgamage,M.P. 4. Hon. Rohitha Abeygunawardana, M.P. 5. Hon. Susil Premajayantha, M.P. 6. Hon. Jayantha Samaraweera, M.P. 7. Hon. Dilum Amunugama, M.P. 8. Hon. Indika Anuruddha Herath, M.P. 9. Hon. (Dr.) Sarath Weerasekara, M.P. 10. Hon. D.V. Chanaka, M.P. 11. Hon. (Dr.) Nalaka Godahewa, M.P. 12. Hon. Ajith Niward Cabral, M.P. 13. Hon. Rauff Hakeem, M.P. 14. Hon. Anura Kumara Dissanayaka, M.P. 15. Hon. Patalee Champika Ranawaka, M.P. 16. Hon. Jagath Pushpakumara, M.P. 17. Hon. Iran Wickramaratne, M.P. 18. Hon. Ranjan Ramanayake, M.P. 19. Hon. Nalin Bandara Jayamaha, M.P. 20. Hon. S.M. Marikkar, M.P. 21. Hon. Premnath C. Dolawaththa, M.P. 22. Hon. Sanakkiya Rajapuththiran Rajamanikkam, M.P. 3 Parliamentary Series No 184 4 The first report of the Committee on Public Enterprises in the first session of the ninth Parliament of the Democratic Socialist Republic of Sri Lanka CONTENTS Page No 1. Chairman‟s Note 7 2. The First Report of the Committee on Public Enterprises in the First Session of the Ninth Parliament 9 3. Special Reports of the Auditor General Examined by the Committee: 13 i. The Special Audit Report Presented by the Auditor General on the Request of the Sectoral Oversight Committee of Parliament on Energy Regarding the Procurement by the Lanka Coal Company Ltd for the Lakwijaya Power Station of Norochcholai from the year 2009 to June 2016 25 ii. The Special Audit Report on the Feasibility Study of the Central Expressway Project and the Procurement Activities for the Project 31 iii. The Special Audit Report on the Operational Activities of the Lakwijaya Power Station and its Environmental Impact 41 iv. The Environmental Audit Report on Water Pollution in the Kelanin River 57 v. The Special Audit Report on Procurement for Printing and Handing over of Lottery Tickets for the Computer-Based Lottery Draw at the National Lotteries Board within the year 2016 65 vi. The Special Audit Report on the Role Performed by the Information Technology Agency of Sri Lanka Pertaining to Digitalization in the Public Service 5 Parliamentary Series No 184 6 The first report of the Committee on Public Enterprises in the first session of the ninth Parliament of the Democratic Socialist Republic of Sri Lanka Chairman’s Note I hereby present the report relevant to the examinations of the Committee on Public Enterprises of Parliament held during the period from 06.10.2020 to 08.12.2020. Within the said period which belongs to the First Session of the Ninth Parliament of the Democratic Socialist Republic of Sri Lanka, the Committee basically examined the reports on the special audits conducted by the Auditor General. Among the examinations contained in this report, one special report is on the examination conducted regarding the feasibility study of the Central Expressway and procurement of that project. Several problematic situations of this project which had been subjected to various changes and amendment over many years could be disclosed through this examination. One significant matter that came to light in the examination regarding the environmental impact of Lakvijaya power plant at Norochcholai was the serious issue that prevails in the legal sector as to whether the subject of environment should come under the concurrent list introduced by the 13th Amendment or the central government. It is very important that the society and Parliament as law makers pay attention to this issue. Another examination contained in this report that demands special attention is the examination conducted on the role that has been played by Sri Lanka Information and Communication Technology Agency. It was observed here that the performance of this institution established to be a pioneer in building good digital infrastructure within the country was problematic in two aspects. On the one hand is the question whether the service provided by this institution for the development of the digital sector suited the current requirements of the state. On the other hand, is the question whether the financial investment made for this institution has been managed properly. 7 Parliamentary Series No 184 In addition to those, the examination on the audit regarding the contamination of the water of Kelani river which should be paid attention by the environment sector, has also been included in this report. The maximum service due to the country through the examinations conducted by COPE will be received by bringing the recommendations of the committee to the attention of all relevant parties. I wish to state that drawing the attention of the people who exercise sovereignty and of this august Assembly as their representatives to the recommendations contained here would make this effort more productive. I highly appreciate the support received from the Hon. Members of Parliament who are members of COPE and the support extended by the Hon. Speaker and the staff of Parliament and the National Audit Office headed by the Auditor General to carry out the tasks of COPE successfully. Hon. (Prof.) Charitha Herath Chairman Committee on Public Enterprises 8 The first report of the Committee on Public Enterprises in the first session of the ninth Parliament of the Democratic Socialist Republic of Sri Lanka Ninth Parliament — First Session First Report of the Committee on Public Enterprises It is with great pleasure that I present the First Report of the Committee on Public Enterprises of the First Session of the Ninth Parliament. According to Article 154 (1) of the Constitution of the Democratic Socialist Republic of Sri Lanka, the Auditor General subjects to examination all state-owned Corporations, merchant and other businesses vested in the government by any written law and those companies registered or deemed to have been registered under the Companies Act No. 7 of 2007 in which the government, or a government company, or a local authority holds more than 50% or more of the shares, including their accounts, under the Committee on Public Enterprises. As such, observations and recommendations pertaining to the following Special Audit Reports which were subjected to the Committee‟s examination from 06.10.2020 to 08.12.2020 have been included in this Report: Special Report Subjected to Examination by the Committee on Public Enterprises and the Institution Subjected to Examination Special Audit Report Date of Institutions Subjected to Examination Examination 1. The Special Audit 10.06.2020 * Ministry of Energy Report Presented by * Lanka Coal Company Ltd the Auditor General on the Request of the Sectoral Oversight Committee of Parliament on Energy Regarding the Procurement by the Lanka Coal Company Ltd for the Lakwijaya Power Station of Norochcholai from the year 2009 to June 2016 9 Parliamentary Series No 184 2. The Special Audit 20.11.2020 * Ministry of Highways Report on the * Roads Development Feasibility Study of Authority the Central Expressway Project and the Procurement Activities for the Project 3. The Special Audit 24.11.2020 * Ministry of Power Report on the * Ceylon Electricity Board Operational Activities of the Lakwijaya Power Station and its Environmental Impact 4. The Environmental 26.11.2020 * Ministry of Environment Audit Report on * Ministry of Water Supply Water Pollution in the * Ministry of Irrigation Kelani River * Ministry of Health * Ministry of Industry * Ministry of State Services, Local Government and Provincial Councils * Board of Investment of Sri Lanka * Central Environmental Authority * National Water Supply and Drainage Board 5. The Special Audit 04.12.2020 * Ministry of Finance Report on * National Lotteries Board Procurement for Printing and Handing over of Lottery Tickets for the Computer-Based Lottery Draw at the National Lotteries Board within the year 2016 10 The first report of the Committee on Public Enterprises in the first session of the ninth Parliament of the Democratic Socialist Republic of Sri Lanka 6. The Special Audit 08.12.2020 * Ministry of Technology Report on the Role * Information Technology Performed by the Agency of Sri Lanka Information Limited Technology Agency of Sri Lanka Pertaining to Digitalization in the Public Service 11 Parliamentary Series No 184 12 The first report of the Committee on Public Enterprises in the first session of the ninth Parliament of the Democratic Socialist Republic of Sri Lanka Special Audit Report presented by the Auditor General on the request of the sectoral oversight committee on power in Parliament with regard to the procurement of coal conducted by the Lanka Coal Company Pvt. Ltd. for the Lakvijaya power plant in Norochchole from 2009 to June 2016 Institutions investigated - Ministry of Power - Lanka Coal Company Pvt. Ltd Pre Committee meeting discussion – held on 06th October 2020 Participation Hon. (Pof.) Charitha Herath (Chairman, Committee on Public Enterprises) Mr.
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