PARLIAMENTARY SERIES No. 240

of The Seventh Parliament of The Democratic Socialist Republic of (First Session)

FIRST REPORT

From The Committee on Public Accounts

Presented by Hon. (Dr.) Sarath Amunugama Chairman of the Committee

On 25th July 2013

Ordered by Parliament to be printed on 25th July 2013

Printed at the Department of Government Printing, Sri Lanka.

Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

Composition of the Committee on Public Accounts First Session of the Seventh Parliament

1. Hon. (Dr) Sarath Amunugama (Chairman) 2. Hon. Anura Priyadharshana Yapa 3. Hon. Tissa Karalliyadda 4. Hon. 5. Hon. 6. Hon. 7. Hon. 8. Hon. Patali 9. Hon. 10. Hon. 11. Hon. (Resigned on 21 December 2011) 12. Hon. 13. Hon. 14. Hon. 15. Hon. 16. Hon. 17. Hon. Anura Dissanayaka 18. Hon. 19. Hon. 20. Hon. 21. Hon. Mavai S. Senathirajah 22. Hon. R. Yogarajan 23. Hon. 24. Hon. 25. Hon. (Dr) 26. Hon. (Appointed on 21 December 2011) 27. Hon. 28. Hon. Ajith P. Perera 29. Hon. Janaka Bandara (Resigned on 21 December 2011) 30. Hon. Shantha Bandara (Appointed on 21 December 2011) 31. Hon. S. Shritharan 32. Hon. M.A. Sumanthiran 33. Hon.

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Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

Contents

Page No.

 Preface 01  Report 03  Schedule 01 - General Observations & Recommendations 09  Schedule 02 – Major Observations on Individual Institutions 17 * Ministry of Local Govt. & Provincial Councils 17 * Department of Forest 17 * Department of Debt Conciliation Board 18 * Department of Technical Education & Training 18  Ministry of Traditional Industries & Small Enterprise 19 Development * Ministry of Technology & Research 21 * Ministry of Resettlement 22 * Ministry of Social Services 23 * Government Factory 23 * Ministry of Ports & Aviation 25 * Ministry of Power & Energy 26 * Department of Agrarian Development 27 * Department of Probation & Childcare Services 30 * Ministry of Fisheries & Aquatic Resources Development 31 * Department of Fisheries & Aquatic Resources 33 * Ministry of Environment 33 * Department of Upcountry Peasantry Rehabilitation 35 * Ministry of Public Administration & Home Affairs 35 * Registrar General's Department 38 * Ministry of National Heritage & Cultural Affairs 38 * Department of National Archives 40 * Ministry of Mass Media & Information 41 * Department of Government Information 42 * Department of Coast Conservation 43

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 Department of Public Trustee 45

 Department of Examination 47

 Department of Archeology 49

 Department of Census & Statistics 51

 Department of Legal Draftsman 53

 Department of Food Commissioner 55  Department of Labour 56  Department of Rubber Development 59  Department of External Resources 60  Department of Official Languages 61  Department of Export Agriculture 63  Department of Prisons 65  Department of National Museums 65  Department of Co-operative Development 67  Department of Land Commissioner General 68  Department of Animal Production & Health 69  Department of Irrigation 71  Department of Government Analyst 73  Department of Police 74  Department of National Zoological Gardens 77  Department of Excise 80  Department of Foreign Aid & Budget Monitoring 82  Department of Meteorology 82  Sri Lanka Navy 84  Office of the Leader of the House of Parliament 88  Office of the Leader of the Opposition of Parliament 89  Department of Valuation 89  Sri Lanka Air Force 91  Sri Lanka Army 95  Sri Lanka Customs 95  Department of Inland Revenue 99

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 Ministry of Indigenous Medicine 100

 Ministry of Parliamentary Affairs 102

 Ministry of Land & Land Development 103

 Department of Import & Export Control 106  Ministry of Petroleum Industries 107  Office of the Parliamentary Commissioner for Administration 108  Ministry of Co-operatives & Internal Trade 109  Ministry of Water Supply & Drainage 113  Ministry of Foreign Employment promotion & Welfare 116  Department of National Planning 118  Ministry of Buddhasasana & Religious Affairs 120  Department of Fiscal Policy 122  Department of Commerce 123  125

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Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

PREFACE

The Committee on Public Accounts (COPA) of Sri Lanka was established on 26 October 1921. In most of the countries, Committee on Public Accounts is the oldest and the most significant Parliamentary Standing Committee. Similarly in Sri Lanka, the COPA is the oldest parliamentary committee.

As an Oversight Committee the Committee on Public Accounts plays a very important role in assisting the respective Parliaments to ensure the accountability to the public finance as people‟s representatives. The primary duty of a Committee on Public Accounts is to re- view the reports of the Auditor General and other information including performance re- ports and examine respective Public Officers to ensure the accountability. The COPA is expected to report its findings and make its recommendations to the Parliament from time to time.

More than 500 Institutions come under the purview of this Committee. They are all Min- istries and Departments, Provincial Councils, District and Divisional Secretariats, Urban Councils, Pradeshiya Sabhas, and some Institutions which come under the and some Funds as well as Foreign Funded Projects.

The control over public finance is vested in the Parliament by section 148 of the Constitu- tion which is now in operation. The COPA is the most significant arm of executing this power as an Oversight Committee. This power is also executed by the Committee on Public Enterprises which is the other Oversight Committee, at present in operation.

One of the main objectives of the Committee on Public Accounts is to examine whether the Administration/ Management structure of the government had satisfactorily carried out the responsibilities entrusted upon these institutions efficiently, effectively and transparently during the time frame they were expected to complete those Projects, Pro- grammes and other administrative activities in accordance with Government Rules and Regulations mainly Administrative and Financial Regulations.

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It should be understood that Auditor General‟s Department‟s responsibility is to identify lapses, irregularities and mismanagements in government institutions with a view to cor- rect them and to see whether the government obtain Maximum Return for the investments that are incurred or in other words Value for Money.

However, it is believed that some of the public servants are of the view that Auditor Gen- eral‟s Department is a hostile organization trying to find ways and means of allocating blame on their institutions.

The Committee on Public Accounts with the assistance of the Attorney General‟s Depart- ment and other relevant institutions examine those issues that had arisen during the imple- mentation stages, whether they were executed with care and proper supervision and com- pleted within the time schedule according to Administrative and Financial Regulations or whether there were other issues beyond the control of Implementing Agencies and if so how best they could be sorted out for future efficient management in the interest of the general public.

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REPORT

The Committee on Public Accounts (COPA) for the First Session of the Seventh Parlia- ment is pleased to present its first Report to Parliament.

The COPA for the First Session of the Seventh Parliament was nominated by the Com- mittee of Selection in terms of the Standing Orders of the Parliament of Sri Lanka and was announced in the House on 20 May 2010.

The Committee met for the first time on 08 June 2010 and has been sitting thereafter on a regular basis to examine the Government Institutions in terms of the Parliamentary Standing Order No. 125.

This Report covers the period from 08 June 2010 to 31 December 2011. During this peri- od the Committee examined 69 Government Institutions based on the Audit paragraphs reported in the Auditor General‟s Reports from 2005 to 2009 and excesses, shortfalls, non compliances & unauthorized working losses reported in the Auditor General‟s Reports 2009 and also the Current performance in respect of those institutions.

Government institutions examined during the entire period are indicated below.

Government Institutions Examined

No Name of the Institution Line Ministry Date of the . Examination 01 Ministry of Local Govt. & Provincial Councils 03.08.2010

02 Department of Forest M/ Environment 17.08.2010 03 Department of Debt Conciliation Board M/ Justice 18.08.2010 04 Department of Technical Education & Training M/ Youth Affairs 19.08.2010 05 Ministry of Traditional Industries & Small En- 07.09.2010 terprise Development 06 Ministry of Technology & Research 08.09.2010 07 Ministry of Resettlement (Excesses – in the 09.09.2010 Year 2009) 08 Ministry of Social Services (Shortfall - in the 09.09.2010 Year 2009)

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No Name of the Institution Line Ministry Date of the . Examination 09 Government Factory M/ Construction Engi- 09.09.2010 (Excess/Shortfall - in the Year 2009) neering Services, Hous- ing & Common Ameni- ties 10 Ministry of Ports & Aviation 23.09.2010 11 Ministry of Power & Energy 24.09.2010 12 Department of Agrarian Development M/ Agriculture 05.10.2010 13 Department of Probation & Childcare M/ Child Development & 05.10.2010 Services Women‟s Affairs 14 Ministry of Fisheries & Aquatic Re- 06.10.2010 sources Development 15 Department of Fisheries & Aquatic M/ Fisheries & Aquatic 06.10.2010 Resources Resources Development

16 Ministry of Environment 07.10.2010 17 Department of Upcountry Peasantry M/ Economic Develop- 07.10.2010 Rehabilitation ment 18 Ministry of Public Administration & 19.10.2010 Home Affairs 19 Registrar General's Department M/ Public Administration 19.10.2010 & Home Affairs 20 Ministry of National Heritage & Cul- 21.10.2010 tural Affairs 21 Department of National Archives M/ National Heritage & 21.10.2010 Cultural Affairs 22 Ministry of Mass Media & Infor- 09.11.2010 mation 23 Department of Govt. Information M/ Mass Media & Infor- 09.11.2010 mation 24 Department of Coast Conservation M/ Ports & Aviation 10.11.2010 25 Department of Public Trustee M/ Buddhasasana & Reli- 23.11.2010 gious Affairs 26 Department of Examination M/ Education 24.11.2010 27 Department of Archeology M/ National Heritage 25.11.2010

28 Department of Census & Statistics M/ Finance & Planning 30.11.2010

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No. Name of the Institution Line Ministry Date of the Examina- tion 29 Department of Legal Draftsman Presidential Secretariat 06.12.2010 30 Department of Food Commissioner M/ Co-operatives & In- 07.12.2010 ternal Trade 31 Department of Labour M/ Labour & Labour 06.12.2010 Relations 32 Department of Rubber Development M/ Plantation Industries 04.01.2011 33 Department of External Resources M/ Finance & Planning 05.01.2011 34 Department of Official Languages M/ National Languages 20.01.2011 & Social Integration 35 Department of Export Agriculture M/ Minor Export Crop 08.02.2011 Promotion 36 Department of Prisons M/ Rehabilitation & 10.02.2011 Re-examination Prison Reforms 05.05.2011 37 Department of National Museums M/ National Heritage 23.02.2011 38 Department of Co-operative Development M/ Co-operatives & In- 08.03.2011 ternal Trade 39 Department of Land Commissioner Gen- M/ Land & Land Devel- 22.03.2011 eral opment 40 Department of Animal Production & M/ Livestock Develop- 23.02.2011 Health ment & Rural Communi- Re -examination ty Development 07.06.2011 41 Department of Irrigation M/ Irrigation and Water 24.03.2011 Re- examination Resources Management 07.06.2011 42 Department of Government Analyst M/ Justice 05.04.2011 Re-examination 05.05.2011 43 Department of Police M/ Defence 06.04.2011 44 Department of National Zoological Gar- M/ Economic Develop- 03.05.2011 dens ment Re- examination 23.11.2011 45 Department of Excise M/ Finance & Planning 04.05.2011 46 Department of Foreign Aid & Budget M/ Finance & Planning 25.05.2011 Monitoring 47 Department of Meteorology M/ Disaster Management 08.06.2011 48 Sri Lanka Navy M/ Defence 09.06.2011

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No. Name of the Institution Line Ministry Date of the Examination 49 Office of the Leader of the House of 21.06.2011 Parliament 50 Office of the Leader of the Opposition 21.06.2011 of Parliament 51 Department of Valuation M/ Finance & Planning 22.06.2011 52 Sri Lanka Air Force M/ Defence 23.06.2011 53 Sri Lanka Army M/ Defence 05.07.2011 54 Sri Lanka Customs M/ Finance and Planning 06.07.2011 55 Department of Inland Revenue M/ Finance and Planning 07.07.2011 Re- examination 09.08.2011 56 Ministry of Indigenous Medicine 09.08.2011 57 Ministry of Parliamentary Affairs 11.08.2011 58 Ministry of Land & Land Develop- 23.08.2011 ment 59 Department of Import & Export Con- M/ Finance and Planning 24.08.2011 trol 60 Ministry of Petroleum Industries 25.08.2011 61 Office of the Parliamentary Commis- 07.09.2011 sioner for Administration 62 Ministry of Co-operatives & Internal 20.09.2011 Trade 63 Ministry of Water Supply & Drainage 21.09.2011 64 Ministry of Foreign Employment Pro- 22.09.2011 motion & Welfare 65 Department of National Planning M/ Finance and Planning 06.10.2011 66 Ministry of Buddhasasana & Reli- 18.10.2011 gious Affairs 67 Department of Fiscal Policy M/ Finance and Planning 19.10.2011 68 Department of Commerce M/ Industry & Commerce 20.10.2011 69 Parliament of Sri Lanka 08.11.2011

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General Observations on Government Institutions There had been General Observations common to many Government Institutions. They are listed in the Schedule 1.

Major Observations on individual Government Institutions The Committee observed several deficiencies relating to each of the above Government Institution which are listed in the Schedule 2.

Above observations are made on the position prevailed at the time of examination.

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Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

Schedule 01

General Observations on Government Institutions At the inception, the Committee on Public Accounts would like to report to Parliament on very important observation made by the Committee throughout these examinations. There were a considerable number of issues discussed which were common to many gov- ernment institutions and they are listed as general observations. These issues are serious in nature which need immediate remedial actions since they make an adverse impact on effective functioning of government institutions. Moreover, the effectiveness of the al- ready set guidelines to be followed is a question to be addressed. The Committee also gives its recommendations in respect of each and every common lapse with a firm belief that all concerned parties would follow them without considering these as mere reporting.

1. Delays in Presenting Annual Action Plan Out of the 69 Institutions examined, 20 had not paid attention to the basic requirement of annual planning. Some institutions had not prepared Annual Action Plans for several years while others had not presented their Annual Action Plans in time for them to com- mencing the implementation of programmes in the beginning of the financial year. No institution can be effectively run without a plan. Department of Legal Draftsman was reported to be not preparing Annual Action Plans since 2005 and the Department of Public Trustee had not prepared its Annual Action Plans for 2008, 2009 and 2010 as at the date of examination. Sri Lanka Air Force and Sri Lanka Navy had not prepared that from 2005 to 2010 due to the war prevailed in the country during that period.

Recommendations Every institution should prepare a well formulated Annual Action Plan before the begin- ning of the relevant financial year thereby, giving sufficient time for Technical Officers and other relevant officers to commence their development programmes in early January. This plan should be the basic document to be referred in achieving the objectives of the institution. There should be periodical performance review systems, at least once in three months to monitor the progress of work and to attend to other related issues that a rise during

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the implementation period so that financial disbursement activities and other related issues could be sorted out without delays. This mechanism could facilitate achieving targets easi- ly according to time schedules.

2. Delays in tabling of Performance Reports The following government institutions were not able to table Annual Performance Reports in conformity with the Public Finance Circular No. 402 of 12 November 2002. Departments of Prisons, Rubber Development, Export Agriculture, Sri Lanka Customs and the Ministries of Petroleum Industries, Foreign Employment Promotion & Welfare and Office of the Parliamentary Commissioner for Administration had not tabled their reports for several years as at the date of examination.

Recommendations Every government institution should prepare and table Annual Performance Report in con- formity with the Public Finance Circular No. 402 of 12 November 2002 within the pre- scribed time period. Accurate information and statistics of the progress should be included in that report. This is one of the important measures showing the accountability towards the people and establishing democracy for which the people are entitled to enjoy.

3. Recovery of Loan balances This issue was observed in 36 institutions. A large amount of money due to these institu- tions has not been recovered. There had been outstanding Loan balances from officers who had been transferred, vacated their posts, been interdicted, retired and died. One major reason for this was stated as difficulty in finding out details of the officers who had been transferred to other institutions, especially to the Provincial Councils. Although there is a set mechanism to take over the due loan balance by the department for which the officer is transferred, this mechanism is not followed. In some Institutions there had been loan balances remaining outstanding over a long period. There were several instances where Distress Loans had been granted taking Agrahara Insurance Scheme as the guaranty and that the acceptable strategies had not been provided to claim the loan balances from the Agrahara when the agreements were breached. In the Departments of Forest, Agrarian Development, Examinations, Food Commissioner,

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Police and also in the Sri Lanka Navy and Sri Lanka Air Force loan balances to be recov- ered were reported in millions.

Recommendations Timely action should be taken to recover the loans and all records pertaining to the loans should be maintained and updated properly. It is also recommended to identify the diffi- culties in recovering the loan balances and to find a remedy. The Committee emphasizes the need of a common mechanism to simplify the recovery of loans. The Treasury was informed to introduce a system to arrest this situation, and also to for- mulate a system where Agrahara Insurance Scheme could be considered as a guaranty, in an effective manner. The officials of the Treasury were instructed to issue a circular ena- bling the recovery of dues from retired officers from their monthly pensions of those who had taken loans. The Treasury was also directed to find a mechanism to grant loans to the state officers by the Treasury as a centralized unit rather than giving such burden to the individual state institutions.

4. Vacancies in Institutions During the examinations, 32 institutions had been identified as institutions suffered from unfilled vacancies for a considerable period of time. Although the cadre provisions were available, these institutions have failed to fill the vacancies in time, there by creating many problems to such institutions. This had affected the performance of those Institutions. It was revealed that filling of vacancies had been hindered by certain circulars issued by the Ministry of Public Admin- istration and the rigid policy maintained by the institutions such as Ministry of Public Administration, Department of Management Services and Salaries & Cadre Commission. Number of vacancies was very high in the Departments of Prisons, Registrar General, Sri Lanka Customs, and in the Ministry of Indigenous Medicine. 3772 vacancies in Services and 607 vacancies in civil grades were reported in the Sri Lanka Air Force as a result of increased cadre during the war period, which should be revised by now. Out of the many institutions that had been badly suffered by this issue the Financial Management Section of the Department of Commerce in which a large number of vacancies existed had created severe shortcomings.

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Recommendations The Chief Accounting Officers and Accounting Officers should get the attention of the responsible institutions with regard to the providing of necessary staff and, the Ministry of Public Administration and the other related institutions should also maintain a relaxed policy towards the filling of vacancies.

5. Under Utilization of provisions In many institutions there had been high amount of under utilization of budgetary provi- sions especially under Capital expenditure. In few cases this was due to delay in releas- ing imprest from the Treasury. Another reason for this was due to unrealistic projections when preparing Annual Estimates. This situation should be considered seriously because, if there had been a realistic estimate the Treasury could have been able to make use of this money for a better purpose. This issue was prominent in the Ministries of Traditional Industries & Small Enterprise Development, Technology & Research, Ports & Aviation, Power & Energy, Land & Land Development and the Departments of Police, External Resources and the Foreign Aid & Budget Monitoring.

It was also observed that a considerable number of foreign funded projects have fallen into the category of “behind the schedule” due to under utilization of funds. This is an alarming situation as these fundings are closely monitored by the donor agencies and could badly affect the future funding negotiations.

Underutilization of assets such as buildings and equipment had created many problems to many institutions. Many such cases have been reported from the Department of Export Agriculture, Department of Animal Production & Health.

Recommendations As the Government allocates money to the Institutions with much difficulty, it is the re- sponsibility of such departments to make maximum utilization of such money. Idling money in this manner hinders the development of the country. Therefore it is needed to exercise proper planning and budgeting when preparing the Annual Estimates.

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Completed buildings should not be abandoned or neglected. If the relevant department does not need such building they should immediately make arrangements to hand them over to other department which needs building space. These issues could be sorted out at District or Divisional coordinating committee level.

6. Delay in conducting Boards of Survey Out of the 69 Government institutions examined, this shortcoming relates to several insti- tutions. n the Department of Public Trustee, Boards of Survey had not been conducted in the years 2005, 2006 and 2007 where the Ministry of National Heritage & Cultural Affairs had not conducted them in 155 cultural centres as at the date of examination. The Depart- ment of National Museums had not conducted Boards of Survey with regard to books & publications due to lack of man power.

Recommendations All Government Institutions should conduct Annual Boards of Survey timely as it can be a serious weakness in controls, and also might lead to various fraudulent activities.

7. Balances remaining for a long period in the General Deposit Account There had been several instances where balances remained for a long period in the Gen- eral Deposit Account. This issue was reported in the Ministries of Power & Energy, National Heritage & Cul- tural Affairs and also in the Departments of Coast Conservation, Co-operative Develop- ment and Sri Lanka Air Force.

Recommendations Attention should be paid to settle this matter as it is a failure to comply with the Financial Regulations.

8. Audit & Management Committees Several Government Institutions had failed to establish and effectively conduct Audit and Management Committees which resulted in poor controls especially in the Financial Man- agement. As far as the Department of Legal Draftsman is concerned, only two committee meetings

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As far as the Department of Legal Draftsman is concerned, only two committee meetings had been held in 2009 while no meeting had been held in 2010. Ministry of Co-operatives Development had not held required number of committee meetings from 2005 to 2010 but has started to hold them from 2011. In the Department of Commerce, only 04 meetings had been held from 2005 to 2010, which was very much lower than the requirement, owing to the fact that the Department was under several ministries. Accepted requirement is that every department should hold this meeting quarterly.

Recommendations All Government Institutions should establish Audit and Management Committees meetings on a very regular basis. They should meet at least once in a quarter. All the institutions need to understand the impact that Audit and Management Committee could make towards the efficiency and the effectiveness of the institution.

9. Internal Audit Units Some Institutions had not established Internal Audit Units at all and in some institutions the Internal Audit Units are not functioning properly. The department which has an effec- tive Internal Audit Unit could reduce the number of audit queries and reduce the work load of the Auditor General and the burden of the Committee on Public Accounts. It was reported that there were no adequate staff in the Internal Audit Unit of the Ministry of Public Administration & Home Affairs which should be strengthen without any delay, since the Ministry has number of offices to be monitored island wide. Those units were not functioning properly in the Ministry of Buddhasasana & Religious Affairs and in the De- partment of Public Trustee. The Departments of Government Information and Zoological Gardens had not established the Internal Audit Unit as at the date of examination.

Recommendations Proper functioning of Internal Audit Unit is very necessary in order to have healthy finan- cial control. Heads of departments should take steps to establish and activate Internal Audit Units in their respective departments and provide facilities for them to function effectively.

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10. Not Revealing information to the Auditor General to get matters sorted out at the preliminary level In several occasions it was observed that several Institutions had not provided correct and adequate information at the preliminary level where the issues can be settled without in- cluding them in the reports of the Auditor General. This was observed in the Ministries of Traditional Industries & Small Enterprise Development, Mass Media & Information and in the Departments of Forest, Fisheries & Aquatic Resources and the Sri Lanka Air Force. If this was properly executed, the burden of the Committee on Public Accounts could also be minimized.

Recommendations It is imperative that all institutions should provide facilities and other necessary infor- mation to Auditor General‟s staff and maintain good relationship with them. The Auditor General is empowered by the Constitution to go into any kind of official document, stores or question any person in carrying out his duties. The Auditor General‟s staff such as Superintendents of Audit and their assistants who are attached to departments and institutions also should meet and discuss issues related to those institutions with such Heads of Departments or local Heads of Institutions and sort out minor issues rather than working in isolation and reporting all matters to Auditor Gen- eral for necessary action.

11. Arrears of Revenue During this period, the Committee examined few departments which collect revenue, such as the Departments of Excise, Inland Revenue and Sri Lanka Customs. Weaknesses in the revenue management were observed in all these institutions. In the Department of Excise, revenue to be collected in respect of two revenue accounts had gone into arrears amounting to Rs.529,315,117 of which Rs.458,977,361 had been more than 04 years old as at the date of examination. In the Sri Lanka Customs, it was reported that, arrears of revenue had increased heavily from Rs.03 billion to Rs.09 billion during 2005 to 2010 due to releasing of imported goods for government projects under provisional entries as ordered by the Department of Fiscal Policy. Further more, 04 companies had not paid excise duty amounting to Rs.172,781,322.

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Department of Fiscal Policy had not included revenue of Rs.565 million in the revenue account in 2005, where the Committee stated that this kind of unsettlements leads to gov- ernment revenue to be calculated erroneously by millions.

Recommendations It is very essential to have a sound accounting system and a proper reporting system as required by the FRR and Treasury circulars respectively. It is also a responsibility of these institutions to establish well organized data collection systems in order to overcome this issue. Necessity of implementing a proper monitoring system is another very important factor that Committee emphasized. Further more, the Treasury should be provided with correct figures especially with regard to revenue, since it highly contributes to their budget management process.

12. Non maintenance of Fixed Asset Register and Losses & Damages Register It was observed that several institutions had not maintained these registers or not main- tained them properly, in terms of the Financial Regulations and Circular instructions. The Ministry of Buddhasasana & Religious Affairs was reported as not to having maintained both these two registers. Department of National Archives had no Fixed Assets Register up to August 2010. The Ministry of Fisheries & Aquatic Resources Development had not included the losses amounting to Rs.503,355 in their Losses & Damages Register.

Recommendations In the Asset Management, it is very necessary to maintain complete and up dated Fixed Asset Registers and Losses & Damages Registers in conformity with the FRR and Circular instructions. Necessary action should be taken with regard to variances if reported any, after conducting Annual Boards of Survey in time.

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Schedule 02 — Major Observations on Individual Institutions

Name of the Institu- Major Issues Discussed Explanations by the tion/ Line Ministry & CAO/AO & Comments / Date of Examination Directives of the COPA

1. Ministry of Local 1 The commitments had ex- 1 The Ministry had done a Government & Provin- ceeded the provisions in methodology error and cov- cial Councils the years 2005, 2006 & ering approval should have 2009 and the commitments been taken for the commit- August 03 2010 had not been disclosed in ments. Directed to take the years 2006 & 2009. action against the officer who was responsible for this issue and report back to the Committee. 2 Disciplinary action had not 2 A loss or damage was di- been taken against the for- rected to be recovered from mer Media Secretary who the former Media Secretary. was responsible for the accident of the vehicle bearing No. PB 2303 in 2009.

The former Media Secre- tary had driven his official vehicle without written permission and had done re- pairs personally after the acci- dent. 2. Department of 1 Difference between the 1 The CAO/AO stated that Forest estimated and the actual now the matter had been revenue was observed. solved as a general formula (M/ Environment) This was due to use of two had been introduced under types of formulae by the the guidance of the Treas- 17 August 2010 Dept. and the Timber Cor- ury. poration when calculating stumpage. A report should be submit- ted regarding this matter within 2 Weeks. 2 There had been a loan bal- 2 Outstanding balances of the ance of Rs.2.7 million as at officers who had been year 2009 and it had been transferred, interdicted and coming from the year retired should be recovered 1986. and a detailed report should be submitted after recover- contd. ies had been done including outstanding balances with the names of the responsible offic- ers.

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Name of the Institu- Major Issues Discussed Explanations by the tion/ Line Ministry & CAO/AO & Comments / Date of Examination Directives of the COPA

Department of Forest 3 Out of the vehicles pur- 3 Directed to look into this chased to a foreign funded matter, as this practice is project, 03 vehicles had illegal. been released to the Minis- try and 01 vehicle had been released to the Dept. of Wildlife. Rs.1.2 million had been incurred on repairs and maintenance work of those vehicles by the Dept. which were used by the Dept. at that time.

3. Department of Debt 1 1139 complaints had been 1 The CAO/AO stated the Conciliation Board pending for inquiry by the the Dept. had taken action end of the year 2009. to expedite the disposal of (M/ Justice) the cases having decentral- ized the process. 18 August 2010 The Committee directed the CAO/AO to intervene the matter to expedite the disposal and report back to the committee. 4. Department of 1 Goods worth of Rs.530 1 Boards of Survey should be Technical Education & million had not been conducted in all the Tech- Training properly inventerized in- nical Colleges inventeriz- cluding 02 Nos. of X trail ing the assets purchased in (M/Youth Affairs) Model motor vehicles and a each year and a report set of computers had also should be submitted in this 19 August 2010 been misplaced in Kalutara regard to the Committee as Technical College. well as to the Auditor Gen- eral. 2 The importance of increas- 2 The capacity of the existing ing of the intake of students college should be increased to the Ceylon German or branches should be es- Technical Training Insti- tablished. tute. 3 Due to various reasons, 3 Directed to review the situ- there had been a considera- ation and introduce a new ble number of students scheme to overcome this drop out from the Tech- problem. nical Colleges. contd..

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Name of the Institu- Major Issues Discussed Explanations by the tion/ Line Ministry & CAO/AO & Comments / Date of Examination Directives of the COPA

Department of 4 There had been a shortage 4 The Committee directed to Technical Education & of academic staff and most review the situation and Training of them had not been work- utilize the maximum capac- ing for more than one or ity of qualified lecturers. two hours per day. These two reasons also caused the drop out rate of students.

5 Technical education cours- 5 It was stated that, though es had not been conducted the Dept. had up graded the outside the North and East most of the Technical col- even though 50% of the leges, the Dept. had a prob- Tamil people live in other lem in recruiting Tamil and parts of the country. Sinhala academic staff.

Directed to see whether the Dept. could recruit re- source personnel or to in- crease the salaries in con- sultation with the Secretary to the Ministry of Public Administration.

5. Ministry of Tradi- 1 Provisions under 08 objects 1 There had been a delay in tional Industries and amounting to releasing the imprest from Small Enterprise De- Rs.53,365,843 ranging the Treasury under these velopment from 20% to 99% had been object codes, but the Audi- saved. tor General had considered 07 September 2010 the budgeted provision.

The Committee directed to report the correct situation, when replying the audit queries to avoid this kind of issues.

2 Out of the 25 million given 2 Proposals should be intro- by the Export Development duced to utilize these Board from the Cess Fund, funds. Rs.12 million had still been retained in the General De- posit Account. This Cess contd.. fund had been given to develop the industry.

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Name of the Institu- Major Issues Discussed Explanations by the tion/ Line Ministry & CAO/AO & Comments / Date of Examination Directives of the COPA

Ministry of Traditional 3 Capital goods valued at 3 The CAO stated that the Industries and Small Rs.19,183,045 purchased Ministry had started dis- Enterprise Develop- from the Ministry provi- tributing them and would ment sions had not been distrib- conclude distributing goods uted to the Common in all 43 Centres very early. Amenity Centres. A report on the action tak- en in this regard be submit- ted to the Committee and the Auditor General.

4 Rs.51,981,714 provided 4 Directed to correct the situ- under capital expenditure ation. of a Development Pro- gramme had been trans- ferred to an Operating Pro- gramme in the same ex- penditure head, violating the Financial Regulations.

5 The Ministry had not re- 5 The CAO was directed to; covered the compensation (i) inform the Chairman of of Rs.120,000 from the NSB about the court salary of the driver (now order and the decision working at the NSB) who taken by the PAC to was responsible for the recover the amount accident of a vehicle be- from driver‟s salary longed to the Ministry. (ii) to hold a domestic in- quiry and find out what action the Ministry could take to recover the money.

6 A sum of Rs.2,551,620 had 6 The Committee wanted to been incurred on Pol- ensure whether those in- onnaruwa - Manampitiya dustrialists could use syn- cane related projects. thetic cane or import cane There had been a problem from Indonesia. in cutting cane and the Ministry had not been able to supply raw materials to the industrialists. contd.

20 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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Ministry of Traditional 7 There had been misappro- 7 The CAO stated that the Industries and Small priation of funds with re- District Secretary had car- Enterprise Develop- gard to the Ampara, ried out an inquiry against ment Uhana, Maligatenna Clay the officer responsible. Products Projects. Directed to take discipli- nary action against the of- ficer if he had done this fraud purposely.

8 Some employees had been 8 Immediate action should be deployed in the Sub Office taken to wind up this office in , without if it is not required and assigning any specific report back to the Commit- functions and paid tee. Rs.954,653 as salaries.

9 (i) Entire provision of 9 (i) The CAO was directed Rs.152,270,000 made un- to look into the matter. der 3 expenditure items had not been spent.

(ii) Out of the 5 million (ii) The Committee di- provided for Bamboo culti- rected the CAO to look vation project, into the matter. Rs.4,851,119 had not been utilized.

6. Ministry of Tech- 1 The CAO was enquired It was stated that most of nology & Research about the action taken to these balances had been recover the outstanding recovered and the Ministry 08 September 2010 loan balances. had written to the Treasury seeking approval to write off the balances that could not be recovered. The correct situation with regard to the outstanding balances should be reported to the Auditor General.

2 The Bio gas electricity 2 Directed to take action to generator which had been regularize this matter. brought for demonstration purposes had been idling. Therefore a private party contd.. had used it at its own cost.

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Ministry of Technolo- 3 Out of the Rs.22.7 million, 3 It was stated that though gy & Research of the foreign aid grants this grant had been allocat- under object titled ed to the Atomic Energy “Technical Assistance & Authority, the International Research grants” only Atomic Energy Authority Rs.4.2 million had been had allocated funds to pur- utilized. chase the equipment and as such the said amount had not been utilized.

A report be submitted on this matter to the Commit- tee and the Auditor Gen- eral.

4 The construction of the 4 It was brought to the notice Vidatha Resource Centre of the Committee that the had not been completed construction of the Re- even though a sum of search Centre had been Rs.2.39 million had re- completed by the end of leased to the Divisional 2009. Secretary Beruwala. A report in this regard should be submitted to the Committee.

7. Ministry of Reset- 1 There had been an excess 1 It was stated that the excess tlement of Rs.83,783,805 in Project had been occurred on ac- No.04 of Programme count of debiting of ex- 09 September 2010 No.02 (Head No.145) in penditure incurred by the 2009. District Secretariats on sudden disasters, to the Ministry vote.

The CAO was directed to get the Ministry books in order comparing the Treas- ury books and the Auditor General was informed to sort out this matter.

The Committee accepted the explanation given with regard to this excess.

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8. Ministry of Social 1 There had been a shortfall 1 The CAO stated that alt- Services of Rs.1,571,852 in the Pub- hough the limit should lic Officers Advance Ac- have been 4 million, the 09 September 2010 count. Treasury had allocated Rs.6 million in the annual estimates.

Directed to correct this shortcoming in consulta- tion with the Treasury and also to take action against the then Chief Accountant who should have prevented this shortfall. The explanation of the CAO was accepted.

The Treasury representa- tive stated that the Treasury allocates funds on the in- formation received from the Ministry and the Minis- try should have corrected the limit by informing the Treasury in time.

The Treasury was directed to introduce a new system which can monitor and correct these type of errors easily.

9. Government Facto- 1 There had been a shortfall 1 The CAO/AO explained ry of Rs.19,023,594 in the that as the prices of raw Minimum Limit on Re- materials had been de- (M/ Construction, En- ceipts with regard to the creased, the Govt. Factory gineering Services, Stores Advance Account had not purchased materi- Housing & Common (Advance Account als as estimated and it had Amenities) No.31002) and despite the resulted a shortfall. minimum limit on liabili- 09 September 2010 ties had not been approved, Directed to regularize the commitments for liabilities matter and the explanations worth of Rs.19,929,841 were accepted. had been entered into in Contd.. 2009.

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Government Factory 2 There had been excesses of 2 It was stated that as the Rs.16,686,826 and Govt. Factory had to spend Rs.125,159,962 on Limit more on labour in 2009, on Expenditure and Maxi- than estimated. mum Limit in Debits re- spectively with regard to Directed to regularize the the Work Done Account in matter and the explanation 2009. Further, even though was accepted. the Maximum Limit on Liabilities had not been approved commitments worth of Rs.1,394,828 for liabilities had been entered into. 3 It was enquired as to why 3 The reply of the CAO/AO the profit of the Govt. Fac- was that it was due to the tory had been varied annu- type of work or construc- ally. tion the Factory receives yearly. Directed to adopt a proper costing system on construc- tion work. 4 A land of 7 acres in Kolon- 4 Directed to send a detailed nawa belonged to the Govt. report to the Committee Factory had been acquired with regard to this matter by the UDA in agreement and also to indicate the to build 128 houses for the action that could be taken workers whose houses had with regard to the construc- to be demolished to clear tion of the balance houses. this land. Even though 9 years had The CAO/AO was also passed, the UDA had built directed to put a cabinet only 32 houses and 12 tem- paper or to write to the porary houses. At present Minister concerned in this 25 workers are waiting for regard. houses. 5 There had been no Internal 5 It was stated that the Facto- Auditor in the Govt. Facto- ry had made a proposal to ry as that post had not been the Treasury in this regard. included in the cadre. Directed to expedite the matter and a request be made from the Dept. of Management Services.

Contd..

24 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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Government Factory 6 The Committee observed 6 The CAO/AO was di- that there is a skilled work- rected to make a restructur- force with high demand, in ing plan to the Committee the Govt. Factory although indicating their sugges- they are not treated equiva- tions, with a view of up- lent to their quality. grading the standards of the Govt. factory while secur- ing the privileges of the workers. 10. Ministry of Ports 1 The Port & Ex- 1 The CAO stated that the & Aviation pansion Project estimating conditions formulated by a cost of Rs.1,230,000,000 the Bank were not compati- 23 September 2010 had not been completed ble with the Govt. policies, even by December 2008, as such the Ministry had to despite incurring an ex- terminate the agreement. penditure of The Project Director stated Rs.1,175,206,809. that they had spent only Rs.827 million.

Committee observed that the reply sent to the audit and the explanation given by the Project Director was contradictory and directed to submit a report including the expenditure incurred and work carried out to the Committee with copy to Auditor General within a month.

2 Rs.13,950,000 allocated to 2 The Ministry did not com- develop the Point Pedro mence the development Harbour had not been uti- work due to the security lized. situation at that time. The CAO further stated that they had not requested any allocation for this project.

A report be submitted to the Committee in this regard.

Contd...

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Ministry of Ports & 3 Particulars had not been 3 It was stated that this Aviation available with regard to the amount had been approved payment of Rs.465 million by Parliament and the im- to Mihin Lanka. prest had been released to Mihin Lanka by the Treas- ury through the Ministry. The Committee observed that Rs.3.3 billion had been allocated by the Treasury to Mihin Lanka, the CAO was directed to submit a report as the sta- tistics and the facts of the above allocation within one month.

4 The Ministry had used a 4 The Committee wanted to large number of motor ve- get an explanation from hicles of Sri Lanka Ports the former Secretary to the Authority without approval Ministry and submit a re- during the period 2005 – port including all details 2008. and also to submit a list of vehicles which had been released by the Authority in 2010 to the Ministry stating whether approval had been obtained from the Treasury.

11. Ministry of Power 1 There had been underutili- 1 It was explained that the & Energy zation of provisions made underutilization was due to under Capital Projects. various reasons beyond the 24 September 2010 control of the Ministry. The “Token Vote System” should be followed for Mega projects.

2 Balances remaining over a 2 Directed to appoint a Com- long period in the General mittee with the Chief Ac- Deposit Account were countant, a Treasury Rep- observed. resentative and an observer from the Auditor General‟s Dept. to examine these balances and send the re- Contd.. port within one month.

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Ministry of Power & 3 The Ministry had been 3 The CAO stated that it was Energy using vehicles belonged to due to unavoidable reasons the other Institutions. and by now the Ministry had been using only 03 such vehicles and agreed to take action to settle it by the end of 2010. The Treasury was informed to ensure whether they could update the Circular of the Public Enterprises, in this regard.

4 The service of the staff 4 The Committee directed to belonging to other institu- take action to minimize this tions had been obtained by practice. the Ministry without prop- er approval.

5 The Committee enquired 5 It was stated that on re- about the action not being ceiving the reports from the taken with regard to the Inquiry Board, the Ministry vehicle accidents. would take action against the officers responsible. A report should be submit- ted within 3 months.

6 An officer who was subject 6 The CAO stated that they to disciplinary action had had obtained the approval been sent on a foreign tour. from the Secretary to the Ministry of Public Admin- istration. A copy of the approval should be submitted to the Auditor General.

12. Department of 1 Illegal land reclamation in 1 It was informed that the Agrarian Development respect of following in- Department had filed 115 stances were discussed cases in the courts includ- (M/ Agriculture) (i) Gampaha – road ing above issues under the reservation Agrarian Development Act. 05 October 2010 (ii) Certain places on Hom- agama - Kalutara road A detailed report should be (iii) Kandy – Chilaw road, submitted to the Committee Contd.. filling of the catchment area of a lake

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3 There had been 234 unan- 3 As most of the queries are swered audit queries from in respect of Agrarian Ser- 2005 to 2010. vices Centres, the Depart- ment had appointed one District Officer for each district to attend monthly meetings and 50 Audit Officers to do continuous auditing to overcome this situation.

4 There had been unidenti- 4 The CAO/AO informed fied debit and credit bal- that they would settle the ances of Rs.19.6 million matter by the end of 2010. and Rs.4.7 million respec- The Committee informed tively between Advance the Treasury to introduce Control Account and CC new system within 3 10 Register. months using modern tech- nology to arrest this situa- tion as this is a common issue in almost all the Government Institutions.

5 (i) The Committee en- 5 (i) the CAO/AO stated that quired about the present the matter had been hand- position with regard to the ed over to the CID and issue of the Janatha Lanka also the Attorney Gen- Contd.. Potatoes Ltd. eral‟s advice had been sought.

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5 (ii) Poor recovery of out- 5 (ii) It was stated that the standing loans balances of Dept. had taken several the loan given to establish steps to recover these the Farmers‟ Banks in the loans and the amount to be Agrarian Services Centres recovered is the initial by the Farmers Trust Fund amounts given to the in 2002 and 2003. Farmers Banks. Directed to submit a report in this regard.

6 Stock verification in the 6 Directed to carry out the warehouse at Narahenpita stock verification as re- had not been carried out quired. after 2004.

7 Following frauds and dam- ages taken place at the Agrarian Services Centre at Anuradhapura - Kattiya- wa were discussed

(i) Fertilizer valued 7 The CAO/AO informed Rs. 380,641 had been is- that the Department had sued in 2007 to 52 acres of taken several remedial land in excess of the extent actions with regard to the- of the paddy land in the se matters. A.R.P.A. zone No. 384. The Dept. should have a more efficient information (ii) 60 bags of fertilizer gathering system and it valued at Rs.111,000 had was suggested to use mo- been sold to an outside bile phones to collect and party by the store keeper of to distribute information. the store No. 63 and the Further training and more money had not been recov- responsibilities should be ered by 31 August 2010. given to the Agrarian Re- search Assistants.

8 It was observed that a slow 8 Directed to submit all par- recovery of installments ticulars to the Committee. pertaining to 489 drip irri- gation sets provided to farmers under the sustaina- ble Agricultural Water Contd.. Management Project.

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Department of 9 It was pointed out that the 9 The CAO/AO stated that Agrarian Development difficulties faced by the they would revise the said public due to shortcomings record in 2011. in the records of paddy Directed to amend the for- lands. mat of the form collecting the information. 1 The Committee enquired 10 The CAO/AO stated that 0 about the current position the Dept. was in difficul- of the recovery of advances ties in shortage of Ac- granted to Agrarian Ser- countants at District level. vices Centres amounting to The Treasury was directed Rs.400 million. to appoint 25 Accountants for all districts. The CAO/ AO was directed to report back to the Committee within one month and also to establish Audit and Management Committees of the Dept.

13. Department of 1 The Committee enquired 1 The CAO/AO replied that Probation and Child- whether the Children‟s the responsibility lies with care Services Homes were maintained at the Provincial Probation & the expected level. Childcare Department. (M/ Child Develop- Further, it was stated that ment and Women‟s the line Ministry had initi- Affairs) ated a project of grading the Children‟s Homes for 05 October 2010 appreciating the well main- tained homes and a Citizen Committee had been ap- pointed to oversee the Non – Governmental Children‟s Homes. The Committee directed to form a new methodology to supervise these homes directly by the line Minis- try and also to submit a report within 2 months.

2 The department had not 2 Directed to appoint Audit taken action to appoint an & Management committee Audit and Management to the Dept. with immedi- Contd.. Committee. ate effect.

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Department of Proba- 3 There were nearly 100 un- 3 The CAO/AO stated that it tion and Childcare registered Children‟s was the responsibility of Services Homes in the country. the Provincial Council Management to register Children‟s Homes. Infor- mation had been collected by the Dept. about unregis- tered homes to take neces- sary action. Directed to rectify all the shortcomings.

14. Ministry of 1 (i) It was enquired whether 1 (i) The CAO stated that Fisheries & Aquatic the Ministry had complied those were only two parts Resources Develop- with the directives given at of the whole project. ment the previous meeting held on 22 October 2009 in re- Even though the project 06 October 2010 spect of Madhu Ganga and had not been completed Negombo Lagoon Projects due to various reasons, funded by the ADB. Rs.10 million had been spent on the feasibility study and also 90% of the money had been spent on indirect and consequential (ii) It was pointed out that maters. the ADB had refused to (ii) The Committee wanted reimburse the money in to know whether the re- respect of 3 withdrawal fusal was due to the ex- applications where the penditure being eligible or money had already been non presentation of the spent by the Treasury. applications in time as it had caused a loss of Rs.73 million to the Govt.

The CAO was directed to submit a detailed report within 2 weeks. 2 The Ministry had failed to 2 The Committee directed to comply with the directives report the steps they had to take necessary action to taken and the replies re- obtain the returned provi- ceived in this regard. sion made for the Jaffna district for the production Contd.. of multi day and one day vessels under the assistance of Netherlands. 31 Parliamentary Series No. 240

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Ministry of Fisheries 3 The Ministry had not car- 3 It was stated that the pay- & Aquatic Resources ried out the directives giv- ments made for the con- Development en at the previous meeting tractor had stopped as they with regard to the construc- had failed to show the tion of Dikowita Fishery physical progress even Harbour. though their financial pro- gress was 80 – 90 %. The Ministry had submit- ted a Cabinet paper with a revised agreement. The contractor had been in- formed to complete the agreed part using contin- gencies. Directed to report to the Auditor General about the consent of the contractor after receiving and includ- ing amendments.

4 The delay in construction 4 The Ministry had only paid of two mother vessels by 20% advance to the said the Dovel International Company and 90% of one Company was discussed. vessel had been completed. The Ministry had also in- formed the contractor to complete the first vessel before 1st October 2010 after correcting the defects and otherwise they would take legal action.

5 The Ministry had not re- 5 The present situation covered the losses amount- should be reported to the ing to Rs.503,355 in the Committee. Register of losses and dam- ages.

6 It was observed that the 6 It was stated that the Minis- Post – Tsunami Livelihood try had informed the UN Partnership Programme Habitat to complete the had not adequately super- infrastructure and other vised the activities per- facilities which were as- formed by the United Na- signed to them as requested Contd.. tions Habitat Programme without further payments. and the records on

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progress, supervision and Directed to send a report review of activities as- after completing that part. signed had also not been obtained. 15. Department of 1 Even though a sum of 1 It was explained that the Fisheries & Aquatic Rs.350 million had been money was allocated by the Resources allocated for construction IFARD Project to construct and distribution of 25 multi 25 crafts but nobody (M/ Fisheries & – day fishing crafts, agree- claimed to buy them as the Aquatic Resources ment had been entered into cost of a craft was higher Development) construction of only 4 than Rs.16 million. Hence crafts and even those crafts the project suggested lend- 06 October 2010 had not been constructed ing 4 crafts as a trial, sub- during that period. ject to a maximum of 8 crafts and the rest of the fund to be used to intro- duce beach seine for small scale boats. The Ministry was planning to perform the activity in 2011.

2 1000 life jackets purchased 2 It was stated that these had not been distributed as were already being distrib- per the Gazette notification uted by the stores. among the owners and the operators of the fishing Directed to send a detailed boats. report to the Committee in this regard.

3 1000 fishing gears, pur- 3 The CAO/AO informed chased for the fresh water that the fresh water fisher- fishermen had not been men do not come under the distributed. purview of this Depart- ment.

The Committee directed to discuss the matter with Auditor General and clarify the procedures before come to the COPA. 16. Ministry of 1 There had been no ade- 1 The Treasury was directed Environment quate Internal Audit staff to look into the matter hav- in the Ministry owing to ing discussed with the Min- 07 October 2010 difficulties in getting trans- istry of Public Administra- ferred the officers recruited tion. Contd.. under the graduate scheme.

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Ministry of 2 No action had been taken 2 It was stated that the matter Environment up to September 2010 re- had been reported to the garding the irregularities Commission for investigate taken place in 2005 & 2006 Bribery or Corruption and in the project for Self As- the Public Service Com- sessment of National Needs mission. for the Global Environment The Committee directed to Management. take action against the of- ficers involved in this ir- regularity at Ministerial level and to submit a report to the Committee and the Auditor general on the action taken. 3 There had been an unsettled 3 The CAO informed that imprest account of this money which had been Rs.464,692. given to the Ex Minister & the Ex Deputy Minister for their foreign tours had sub- sequently been used fraud- ulently by one officer and he had been charge sheet- ed. Directed to expedite the actions against this officer. 4 There had been two motor 4 It was stated that even vehicles which remaining though the tenders were as idle assets for nearly two called in twice to auction years. these motor vehicles, no- body had claimed them for the lowest bid. Directed to inform the Commissioner of Motor Traffic to deregister these two vehicles and recom- mended to donate them to an institute where motor vehicle training courses are conducted. 5 There had been several 5 The Treasury was in- vacancies unfilled for a formed to take necessary long time. action to fill the vacancies with the assistance of the Contd.. Min. of Public Administra- tion & Home Affairs.

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17. Department of Up- 1 The recurrent expenditure 1 The CAO/AO stated that a country Peasantry Re- of the Dept. had been in- large amount of recurrent habilitation creased from 2003 to 2009 expenditure was due to while capital expenditure recruitment of 25 Develop- (M/ Economic Devel- had been decreased. ment Assistants under the opment) graduate scheme and the major reason for reduction 07 October 2010 in capital expenditure was due to the Dept. being con- fined to carry out infra- structure development pro- jects in one Divisional Sec- retariat

2 Even though the objective 2 It was stated that with the of the Dept. was to perform establishment of Samurdhi activities in 10 districts, it Authority, Southern Devel- had been confined only to opment Authority and Sri one district. Lanka Upcountry Develop- ment Authority, the Dept. had been limited to one Divisional Secretariat.

3 The following issues with 3 Directed to hold an investi- regard to the contracts were gation and report back. observed (i) Over payment of Rs.153,247/- made for con- struction of Attaragama Gorakagasanga Botota road. (ii) Concreting of the road in thickness of 03 inches where it should have been 05 inches. 18. Ministry of Public 1 (i) Unauthorized working 1 (i) The CAO stated that Administration & losses in respect of Rest this loss had been shown in Home Affairs House Advance Account the accounts due to errors had not been settled for a occurred in the winding up 19 October 2010 long period. accounts prepared when all Rest Houses were handed over to the Sri Lanka Tour- ist Board in 1993. Contd.. The CAO agreed to solve the matter within 6 months. 35 Parliamentary Series No. 240

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Ministry of Public (ii) Submission of Annual (ii) Directed to submit all Administration & Accounts had been delayed. the Annual Accounts Home Affairs which were not submitted within 6 months.

2 It was questioned as to how 2 It was informed that there the Ministry performs its were only very few vacan- duties with the existing cies in the Executive Grade large number of vacancies. and the problem they un- dergo with Management Assistants and the inter- views were being held for recruiting Junior Grades.

3 The internal audit staff of 3 Directed to strengthen the the Ministry consists of Internal Audit Unit be- only an acting Chief Inter- cause the Ministry has a nal Auditor and 04 Man- number of offices to be agement Assistants monitored island wide.

4 Even though 04 Audit and 4 Directed to hold these Management Committee meetings regularly. meetings should be held in a year, it had not been done so from 2007 to 2010.

5 There had been an underuti- 5 The reason was given as lization of funds in the tsu- the Ministry could not nami project after passing a complete the pre require- supplementary estimate. ments of the project in time.

Directed to take necessary steps to handle the Project Division more efficient- ly.The reason was given as the Ministry could not complete the pre require- ments of the project in time. Contd.. Directed to take necessary steps to handle the Project Division more efficiently.

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Ministry of Public 6 The District Secretariat 6 Directed to inquire about Administration & Nuwara Eliya had not pre- the matter and submit a Home Affairs pared revenue estimates detailed report in this re- had not collected revenue gard. of licenses and taxes etc.

7 There had been a loan bal- 7 It was stated that all possi- ance aggregating ble balances had been col- Rs.584,580 due from offic- lected and remaining ers who had vacated their Rs.584,000 cannot be col- posts. lected.

The Committee directed to take appropriate action having got the opinion of the Attorney General.

The need of amending the conditions of the Agrahara Insurance coverage was stressed and the CAO agreed to amend the circu- lar in consultation with the DG of Establishments and the DG of National Budg- et.

8 It was observed that the 8 Directed to recover the rents in respect of the build- outstanding rents as early ings at the Maligawatta as possible while handing Housing Scheme due from over the maintenance of the Govt. institutions had the buildings to the respec- been increased from Rs.238 tive institutions. million to Rs.246 million from 2007 to 2010.

9 It was queried as to why the 9 The CAO stated that a Dept. of Pensions had de- Committee had been ap- stroyed 788,527 House pointed for investigation Holder Lists belonged to and further action to be the Ministry incurring a taken on its report. loss of Rs.3,055,780 with- out making any inquiry from the Ministry. 37 Parliamentary Series No. 240

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19. Registrar General‟s 1 It was questioned as to why 1 The Committee stated the Department the action had not been tak- importance of having an en to fill 254 vacancies in annual programme if the (M/Public Administra- the Dept. vacancies are created often. tion & Home Affairs)

19 October 2010 2 It was observed that the 2 Directed to change it with Internal Audit Unit being immediate effect as it was operated under the Chief ethically incorrect. Accountant, which is not ethical. 3 A number of malpractices 3 Directed to advise the Reg- had been taken place in reg- istrars not to proceed with istration of deeds of declara- the registration of deeds of tion. declaration unless the own- ership is verified. 4 Revenue on registration had 4 It was stated that this short- not been taken into the An- coming had been due to not nual Revenue due to the receiving revenue state- failure of getting down the ments from the Divisional revenue statements on regis- Secretaries before 10 Janu- tration on time. ary of the following year.

5 The Committee questioned 5 Directed to make a system about the non-rendition of to get the money credited at the duplicate copies of the time of registration. deeds attested by the Nota- ries. 6 There had been an outstand- 6 The Committee directed ing loan balance of that if those balances could Rs.407,155. not be recovered; write off them with the approval of the Treasury and to send a detailed report within 3 months. 20. Ministry of Nation- 1 Action had not been taken 1 It was stated that such dif- al Heritage & Cultural to clear the balance of ference had not been found Affairs Rs.21,356,338 in the Gen- in the Ministry Accounts eral Deposit Account which even though it had been 21 October 2010 was older than 04 years. reflected in the Treasury Books. Directed to submit a de- Contd.. tailed report in this regard within one month.

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Ministry of National 1 There had been outstanding 2 The CAO stated that action Heritage & Cultural loan balance of Rs.541,290. would be taken to recover Affairs Rs.350,000 from guaran- tors. However a sum of Rs.272,000 is due from those who had died.

Directed to expedite action on this and report back to the Committee.

3 A large amount of under 3 The reason for this was utilization of Capital Provi- stated as the Ministry could sions in the years 2008 & not fully implement the 2009 had been observed. following 3 projects. (i) Construction of National Performing Art Centre (ii) Establishment of the Tsunami Museum (iii) Construction of SAARC Cultural Centre 4 The Annual Board of Sur- 4 The Committee was in- vey had not been conducted formed that the available in respect of 155 cultural staff was not adequate to centres in last 3 years. conduct the Board of Sur- vey. Directed to complete the Board of Survey without any delay in respect of eve- ry year. 5 A loss of Rs.12,137,428 in 5 It was explained that the 2001 in connection with the project was started in 2000 construction of National and after the 2002 election, Performing Art Centre was the project could not be questioned. continued as required mon- ey was not received. As the Company filed a case against the Ministry, and the Ministry had to pay 11 million with a legal interest Contd.. on a court decision. The cabinet approval was ob- tained in this respect.

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Ministry of National 6 Expenditure on Warakapo- 6 It was stated that the Heritage & Cultural la Cultural Centre had dearth of staff of the Divi- Affairs been incurred exceeding sional Secretariat delayed the original estimates. the work causing a con- siderable loss to the coun- try.

21. Department of Na- 1 The Committee enquired 1 The Committee was in- tional Archives about the reasons for 83 formed that the recruit- vacancies existed in the ments had been prevented (M/ National Heritage Dept. in 2009. by certain circular instruc- & Cultural Affairs) tions and the Dept. had prepared new schemes of 21 October 2010 recruitment and forward- ed to the Ministry of Pub- lic Administration and to the Salaries and Cadre Commission for approval. The Committee directed to get the attention of the responsible institutions with regard to the provid- ing of necessary staff as it would cause a great loss to the country if the ar- chives got destroyed on account of poor mainte- nance due to lack of staff. The Ministry of Public Administration should also be informed about this. 2 It was inquired that even 2 It was observed that many though the awareness pro- Government Institutions grammes for accession of are not aware of the value documents in 54 Public of archives. Institutions had been con- ducted, only 34 institu- tions had handed over their documents and publi- cations to the National Archives. Contd.. 3 The Fixed Assets Register 3 It was stated that due to had not been prepared in shortage of staff they terms of FR 802 up to Au- could not prepare it in gust 2010. time. 40 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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Department of Nation- Directed to prepare the al Archives Register using an alterna- tive way as early as possi- ble.

4 There were outstanding 4 The CAO/AO stated that loan balances aggregating these balances could not to Rs.120,610 for over 9 be recovered though they years. had made every attempt. The Committee directed to write off the balances over 9 years with the approval of the Treasury and recov- er the balances aging one to two years. 22. Ministry of Mass 1 There had been delays in 1 The Board of Survey re- Media & Information conduct of Annual Boards ports should be presented of Survey. in time in the future. 09 November 2010 2 The money given to pur- 2 The CAO stated that this chase vehicles had been was done as it was urgent- used to purchase valves of ly needed at that time. a transmitter. The Government had to It was suggested reintro- experience a loss as the tax ducing the tax system with system (Radio & TV li- some modifications. censes) prevailed until 1996 was abolished. 3 The contract for mainte- 3 The Committee stressed nance of the premises had the importance strengthen- been offered to a private ing the internal audit sys- company without calling tem to avoid this type of for tenders in 2004. irregularities. 4 A Senior Asst. Secretary of 4 It was informed that the the Ministry had been us- action had taken to charge ing a vehicle belonged to the dues from that officer. the Dept. of Information and obtained a fuel allow- ance of Rs.313,800/-. 5 It was observed that the 5 The Committee emphasized Ministry had not main- the importance of such a tained a better dialogue practice avoiding they be with Auditor General at reported to the Parliament for the hearing of the COPA. preliminary level.

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23. Department of 1 There had been 83 vacan- 1 These vacancies had not Government cies in 2008. been filled until they re- Information ceive a decision of the Sal- aries & Cadre Commission. (M/ Mass Media & Information) The Committee directed to revise the cadre.

09 November 2010 2 An Internal Audit Unit had 2 The CAO/AO informed not been established in the that at present there is a Department and audits had Government Audit Unit not been carried out even by established in the Depart- the Internal Audit Unit of ment itself and they would the Ministry. regularize the system in the future.

The Committee stated that it was a serious lapse. 3 The Committee enquired 3 It was stated that the distant about the underutilization of training programme for provisions from 2005 to which this money had been 2007. allocated could not be con- ducted due to the war.

The Committee advised to conduct the said pro- grammes as they are very useful. 4 Loan balance of Rs.279,931 4 As the Attorney General recoverable from 6 officers had given his opinion to and these loans were 10 – write off these balances the 12 years old. CAO/AO was directed to settle the matter having informed the General Treasury. 5 A balance of Rs.606,014 5 The CAO/AO stated that remained more than 2 years on the recommendation of in the General Deposit Ac- the Committee which had count. been appointed to investi- gate the matter, around Contd.. Rs.200,000/= had been released and the rest would be credited to the Govt. revenue. 42 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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Department of Directed to inform the cur- Government Infor- rent position to the Auditor mation General.

6 A printing machine which 6 The Dept. had appointed a was purchased 15 years ago committee to investigate using a loan of Rs.108 mil- this matter and its report lion obtained from France had been received by now. had not been utilized since then. Directed to send a detailed report within a month as this was a serious issue to be solved. 7 Desathiya Magazines worth 7 The CAO/AO stated that of Rs.79,726 had been lying they will be distributed to in the stores undistributed. the children who visit the Deyata Kirula 2011.

Directed to submit a Cabi- net Paper in this regard and send the copies to libraries and distribute them at Deyata Kirula and to send a report stating actions taken by the Dept. 8 The Committee discussed 8 Directed to accommodate about the Government Pub- Publications Bureau in the lication Bureau functions at building being constructed a rented building at Kirula- by the Ministry. pone incurring high ex- penditure. 24. Department of 1 The Committee discussed Coast Conservation the following matters arisen out of the previous COPA (M/ Ports & Aviation) meeting held on the 22nd October 2009. 10 November 2010 (i) Action had not been tak- (i) Reasons were stated as en either to stop or to limit lack of funds for enforce- the unauthorized construc- ment, pressure put by vari- tion in the coastal strip. Poor ous parties and the Dept. performance was observed did not receive sufficient in 2007, 2008 and 2009. number of Police Officers Contd.. to remove these construc- tions. 43 Parliamentary Series No. 240

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Department of Coast The Committee directed to Conservation take court order to remove 12 constructions in Una- watuna and submit a re- port on the action taken in 2007, 2008 & 2009 to remove the unauthorized constructions indicating the location and the reason for not being able to evac- uate them.

(ii) The Committee dis- (ii) Directed to submit a cussed about the unauthor- progress report including ized occupants in Negom- figures on this subject. bo lagoon area who had immigrated from Kokilai during the period of war and the Dept. requested the respective Divisional Sec- retaries to allow them to reside where space was available. 2 There had been a long out- 2 It was brought to the no- standing loan balance of tice of the Committee that Rs.598,519/- as at 31 De- action had been taken to cember 2009. recover Rs.176,100 from one employee and Rs.18,106 had been writ- ten off as per the approval of the Treasury. The rul- ing of the Attorney Gen- eral had been sought re- garding some balances. 3 An unidentified deference 3 It was stated that the dif- of Rs.7,153,532 in the ference might have been General Deposit Account occurred at the time the was observed. data were computerized in the year 1997.

Contd.. The CAO/AO agreed to rectify it within one month.

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Department of Coast 4 The drastic sea erosion in 4 The CAO/AO stated that Conservation Ampara and Oluwil was the Department had identi- seriously considered by the fied the problem and Committee. would attend to it very early. 5 There had been a consider- 5 The Dept. was informed to able number of vacancies work with the relevant in the Dept. institution to fill these vacancies. 25. Department of 1 There had been delays in 1 Directed to send them Public Trustee presenting Accounts of within 3 months. 2008 and 2009 to the Au- dit. (M/ Buddhasasana & 2 The Committee questioned 2 The Committee stating Religious Affairs) about the following misuse that it was a violation of of vehicles circular instructions, di- 23 November 2010 rected to send a report on (i) Two vehicles bearing these two matters within 2 Nos. 300-0855 and KB – weeks. 8105 belonged to the Lake House being utilized by the Dept.

(ii) The cab bearing No. PB – 9447 belonged to the Dept. being used by the Ministry. 3 The Department had not 3 As there is no use of pre- prepared Action Plans for paring Action Plans for the years 2008, 2009 and 2008, 2009 and 2010 at 2010. this stage, the Committee directed to prepare Action Plan for 2011 and submit it before 31 December 2010. 4 The two vehicles pur- 4 To stop this wrong prac- chased for the utilization of tice immediately and to the administration of trust send report within 3 estates from funds pertain- months. ing to the Estate of Samrakoon being used as official vehicles. Contd..

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Department of Public 5 Boards of Survey for 2005, 5 To take necessary action on Trustee 2006 and 2007 had not been the report for 2009 and im- conducted and actions had mediately report to the not been taken on damaged Committee. It was also di- items with regard to the rected to conduct the Board report for 2009. of Survey for 2010 and Boards of Survey be con- ducted on trusts too.

6 The Committee discussed 6 Directed to recover the the following two issues money from the driver and with regard to the accident report back to the Commit- occurred to the vehicle (No. tee within 3 months. 65-0763) used by the former Public Trustee, making a loss of Rs.254,038/- to the Govt. (i) Failure of the Dept. to obtain a comprehensive insurance (ii) Examination in terms of FR 104 had not been con- ducted against the driver

7 There had been a loss of 7 The CAO/AO stated that Rs.2,977,175/- due to poor there had been a difficulty administration committed of getting money from ten- by the Dept. on the Mudli- ant farmers and the Dept. yar Jayawickrama Trust. had filed cases against them. Directed to send a report to the Committee with copy to the Auditor General as to how much due from farm- ers and details of the cases filed and present position of those cases within 03 months. 8 The expenses on general 8 The Committee directed to administration and mainte- send a report indicating the nance of the Dept. were objectives of the said Trust being debited to the Ac- to the Auditor General count which was formed within 3 months. Contd.. depositing the interests

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Department of Public earned from the invest- Trustee ments of various trust funds (General Investment Inter- est Account).

9 The Internal Audit Unit had 9 The CAO/AO agreed to not been functioning submit the Internal Audit properly. No Internal Audit programme in January programmes and or Internal 2011. Audit Reports had been prepared or presented. The Committee directed to prepare a programme which can be followed continuously. 26. Department of 1 Audit Officers were dis- 1 Directed to withdraw the Examinations turbed in accessing the re- particular letter stressing quired documents by a let- the need of an independent (M/ Education) ter issued by the Commis- audit. sioner General of Examina- 24 November 2010 tions. 2 Action had not been taken 2 Directed to introduce a in respect of 4025 cheques system of crediting those valued at Rs.13 million amounts to the bank ac- which were not presented counts of the respective for payment over 6 months. teachers and report back to The cheques were drawn in the Committee. favour of teachers engaged in paper marking which had not been collected by them.

3 There was a balance in the 3 It was informed that out of General Deposit Account as Rs.4.8 million, Rs.2.7 mil- at 31 December 2009 lion had been returned to amounting to Rs.4,854,810 the Treasury and the rest which was older than 2 was reserved for probable years. expenses of private institu- tions‟ examinations which are to be held.

Directed to focus more attention on the main pub- Contd.. lic examinations and di- rected to submit a report on extra budgetary activities.

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Department of 4 There had been a saving of 4 The Committee stated that Examinations 40.58% under Capital pro- this has occurred due to vision in 2007. The reason administrative weakness of for this was stated as delay the officer concerned and in receiving the money directed to submit a de- from the Treasury and for- tailed report in this regard. eign scholarships and semi- nars not being coordinated in time.

5 There had been a difference 5 It was stated that this was of Rs.96,363,258 million due to delay in getting in- between the Treasury and come reports from Divi- the Departmental books. sional Secretariats in re- spect of Gramaseva exami- nation.

Directed to discuss this matter with the Treasury and reconcile the books within one month. 6 The Committee observed 6 The CAO/AO stated that under utilization of Optical these machines needed Mark Reader (OMR) ma- uninterruptible power sup- chines for over several ply and a 30 million worth years. project had been planned in this connection.

Directed to get the techno- logical advices of experts and go for a cheaper solu- tion. An action should be taken if the company had violated the agreement. 7 Considerable delays in issu- 7 Directed to plan a system ing results of school and to get this process expedit- institutional examinations ed. were observed.

Contd..

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Department of 8 Action had not been taken 8 The CAO/AO stated that Examinations to recover outstanding loan most of these balances had balances. been recovered now.

The Committee directed the Treasury to formulate a system to release the loans directly to the public serv- ants resulting the addition- al burden on Departments be avoided.

9 There had been a considera- 9 The Treasury was directed ble number of vacancies in to work with the Ministry the Dept. of Public Administration & Home Affairs to fill these vacancies. 1 Action had not been taken 1 Directed to take immediate 0 in respect of the excesses 0 action in this regard. and shortages revealed by the Annual Boards of Sur- vey. 27. Department of 1 The Committee discussed Archeology the following matters arisen out of the previous COPA (M/ National Heritage) meeting held on the 20th July 2007. 25 November 2010 (i) The directive given for (i) The CAO/AO stated maintaining a Register of that, an inventory including archeologically conserved the names and the most sites had not been complied important details of each with. site had been prepared.

The Committee directed to publish the said inventory via web site and also through public libraries in Urban Councils.

It was also directed to expedite the process of Contd.. clearing the sites which has archeological value as many development activi- ties had

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Department of been delayed and the gen- Archeology eral public also faces great difficulty when construct- ing houses.

(ii)The Committee en- (ii) The CAO/AO stated quired about the action that they had been discipli- taken against the two offic- nary dealt with. ers involved in the theft of antiques at Situlpawwa Temple.

2 There had been a signifi- 2 The Committee was in- cant under utilization of formed that the situation capital provisions in 2005 had been corrected to a & 2006. certain extent. In 2009, 68% of the Capital provi- sions had been utilized.

The Treasury was in- formed to ease the re- strictions imposed on the provisions considering the type of work done by the Dept.

3 It was discussed about the 3 Suggested to maintain a Money collected from separate Fund for the mon- charity tills. ey collected from charity tills in various places with archeological importance and to use them for the development of those places.

4 The Committee pointed out the importance of prepar- ing a list of archeologically important places in Sri Lanka and working with UNESCO in order to de- velop these places.

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28. Department of 1 Large number of vacancies 1 Directed to fill the vacan- Census & Statistics had affected the functions cies as early as possible. of the Dept.

(M/ Finance & 2 The Committee enquired 2 The CAO/AO stated that Planning) whether the Dept. had a they had prepared a ques- Strategic Plan incorporated tionnaire enabling to ob- 30 November 2010 with latest ideas and new tain information mostly technology to conduct the needed by the country. 2011 census accurately. The Committee directed to send a copy of the ques- tionnaire to the Committee within one month.

3 The Committee enquired 3 The CAO/AO explained about the delay in con- the reasons and stated that struction of the new build- they need another 6 ing even though the money months beyond the stipu- had been allocated. lated time period.

The Committee seriously concerned about the lapses and long delay from both the line Ministry and the Dept., and directed to send a report stating the meth- odology to be adopted to accelerate this project.

4 There had been a transfer 4 The Committee considered of money under the object this as a serious on the part code 1401 under FR 66 of the Department due to violating the circular re- poor estimation and di- quirements. rected to send a report to the Auditor General with copy to the Committee.

Contd..

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Department of Census 5 The Dept. had incurred 5 The CAO/AO stated that & Statistics commitments exceeding the the said payments for the provisions under object last two months of each codes of Electricity, Rents year were done at the be- and Traveling in contrary to ginning of the following FRR. year on the provision given under the FR 94(ii).

As the Dept. had not pro- vided the correct infor- mation to the Auditor Gen- eral, directed to send a sep- arate report to the Auditor General with copy to the Committee.

6 The Committee discussed 6 The CAO/AO stated that about the irrecoverable out- the remaining balance was standing loans from 28 of- due from the officers who ficers. had been transferred to Provincial Councils and Regional Education Offic- es.

The Committee considered this as a common procedur- al problem and directed the Treasury to introduce a system where debtors are accountable to pay back loans by their own.

7 A sum of Rs.709,303 had 7 A report should be sent in been paid as incidental al- this regard. lowances to Officers who had gone abroad violating the circular instructions, even though the sponsoring agency had born the cost.

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29. Department of 1 Only two Audit and Man- 1 Directed to hold the meet- Legal Draftsman agement committee meet- ing for the 1st quarter of ings had been held in 2009 2011 as early as possible. (Presidential Secretari- and no meeting had been at) held in 2010. Being the line Ministry, the Presidential 06 December 2010 Secretariat had failed to convene the meetings.

2 Action had not been taken 2 The CAO/AO stated that to fill the vacancies and the due to various reasons they Committee enquired wheth- could not fill the vacancies er the work of the Dept. had and they would take steps been affected. to fill them in January 2011. 3 The Committee enquired 3 It was informed that the about the delay in publica- Dept. had submitted it to tion of Gazette on “Act to the Government Printer. determine jurisdiction of the courts” as number of new courts had been estab- lished.

4 Action Plan had not been 4 The CAO/AO stated that prepared even prior to the need of a scheme of 2005. Legislations at the begin- ning of each year.

It was suggested preparing an Action Plan covering draft bills, urgent draft bills and subordinate legisla- tions. 5 (i) The need of a Research 5 The Committee directed Unit in the Dept. was high- the CAO/AO to convene a ly considered. meeting with the Constitu- (ii) The Committee dis- tional Division of the Pres- cussed about the delays in idential Secretariat, the courts and considered the Dept. of Legal Draftsman, need of updating Civil Pro- the Law Commission, the cedure Code, Criminal Pro- Lawyers Association and Contd.. cedure Code and Evidence the Ministry of Justice to Ordinance. discuss these matters.

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Department of Legal 6 The Committee discussed 6 The CAO/AO stated that Draftsman about the project for updat- the Treasury had agreed to ing the legislative enact- release the money in 2011 ments of Sri Lanka because and by the end of 2011 a there was no revised edition revised edition could be from 1956. Rs.40 million printed. had been allocated for that project but the money had not been spent.

7 The Committee pointed out 7 Directed to use simple lan- the prevailing displeasure guage with the new Laws among the general public and implement it when the about the language in the new staff to be recruited in Acts as the general public early 2011. cannot understand the lan- guage.

8 The Committee enquired 8 It was recommended to about the following 3 bills discuss the Independent that had been drafted by the Audit Commission Bill and Law Commission in 2005. the National Audit Act at a (i) Right to Information Act Consultative Committee meeting of a Ministry of (ii) Independent Audit Com- Justice and suggested to mission Bill call the Dept. of Legal Draftsman when the Minis- (iii) Regulate the Contempt try of Justice is being sum- of Courts moned before the Commit- tee to be taken this particu- lar issue.

The Committee pointed out the importance of attending a representative of the Le- gal Draftsman at Consulta- tive Committee meetings held with regard to the Ministry of Justice

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30. Food Commission- 1 The Committee questioned 1 It was stated that the cabi- er‟s about the legal status of the net approval had been Department Dept. granted for restructuring the Dept. on 11.08.2008 and (M/ Co-operatives & the Dept. is now maintained Internal Trade) as a restructured institute.

07 December 2010 2 The Committee observed 2 The Secretary to the Minis- that the Dept. could not ob- try was directed to discuss tain the cabinet approval for the matter with the Treas- staff needed for proper func- ury and come up with a tioning. solution.

3 The Committee discussed 3 It was stated that the Dept. about the action taken to had taken several steps in- control the price of rice in cluding rice to be distribut- favour of the consumer. ed among consumers through the Co-operatives and Sathosa.

4 The attention was drawn on 4 The CAO/AO stated that it the grievances of the small is expected to discuss the scale mill owners regarding matter with the Secretary to the difficulty of maintaining the Ministry after obtaining their mills. particulars of all mill own- ers in the country. 5 Importance of having a sub- 5 Directed to work on this stitute for wheat flour was matter with mill owners. discussed.

6 It was discussed about the 6 The CAO/AO stated that 3 Fraud taken place at the court cases were pending in Orugodawatta stores com- this regard. plex and the non recovery of Rs.387,768,708 had not The Committee directed recovered from the K-Port that as per the cabinet deci- Co. Ltd. the previous lessee sion, to seek the advice of of the Orugodawatta stores. the Attorney General to name the Rank Containers Co. the present user of the machinery of the K-Port Contd.. Co., as the 2nd respondent of the case

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Food Commissioner‟s 7 The Committee discussed 7 The Dept. had given 301 Department about the matters arisen re- houses out of 366 houses to garding the rental of houses the Prima Co. as per the in Dhanyagama Trincoma- agreement. lee. As there had been a dispute between the Prima Co. Ltd. and the Dept. over this mat- ter, the Committee directed to obtain a ruling from the Attorney General.

8 Action had not been taken to 8 The reason for this was de- reconcile the balance of the posit of ware house rentals General Deposit Account and the Dept. had requested amounting to Rs.55,063,961 the Treasury to deposit those as at 31.12.2009. rentals. Directed the Treasury to grant such approval, having looked into. 9 Action had not been taken to 9 Directed the Treasury to see recover the outstanding loan the possibilities of writing balances amounting to off these balances. Rs.3,132,769 which were older than 3 years. 1 The Committee questioned 1 The CAO/AO stated that 0 about the non recovery of 0 Rs.11.2 million had already surcharges from store keep- been recovered and court ers of stock shortages cases had been filed regard- amounting to Rs.60.5 mil- ing Rs.13.6 million. lion. As the information of 54 store keepers could not be traced, the Committee di- rected to contact the Dept. of Immigration & Emigra- tion to get the required in- formation. 31. Department of 1 There had been a significant 1 The CAO/AO stated that Labour number of vacancies espe- they had been able to recruit cially in the staff grades. certain number of Labour (M/ Labour & Labour Officers and to fill the posi- Relations) tions of Asst. and Deputy Commissioners. But SLAS 08 December 2010 Officers must be

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Department of provided by the Min. of Labour Public Administration which was not done over the years.

2 The Committee stated that 2 The Committee stressed the the present attitude of the importance of having target public regarding the Dept. and performance bound needs to be changed. evaluation system in the Dept. 3 The Committee pointed out 3 It was suggested to consider the importance of having the proficiency in Arabic, knowledge in laws prevail- Korean, Japanese languages ing in Middle East countries etc as an added qualification and their languages by the at the time of selection. officers of the Department of Labour deployed in those countries. 4 The Committee discussed 4 (i) It was stated that the the following matters arisen Agrahara Insurance Scheme out of the previous COPA was taken as the guaranty meeting held on the 24 No- when approving loans but a vember 2006. methodology had not been provided by the said scheme (i)Item No. 6 (ii) of the pre- to recover the balances vious Minutes when the agreements were The Committee wanted to breached. know the action that had taken to recover the loan balance of Rs.600,400 from interdicted officers.

(ii) Item No. 6 (iii) of the (ii) Directed to take discipli- previous Minutes nary action against the of- The Committee dis- ficers who had failed to take cussed about the loan bal- action to recover the dues in ances to be recovered from time and report back to the transferred and retired offic- Committee. ers amounting to Rs.186,781 and Rs.308,596.90 respec- The Treasury was also di- tively rected to formulate a strate- gy to overcome this situa- tion which is common to Contd.. most of the institutions.

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Department of 5 Rent amounting to Rs.6.1 5 The Committee directed to Labour million had not been recov- look into the matter and ered from the ETF since report back to the Commit- 2006, for the building rent- tee. ed out.

6 There had been a significant 6 The CAO/AO stated that balance in the General De- the money received on in- posit Account. stallment basis from organ- izations as dues of salaries or compensation to the employees are deposited in the General Deposit Ac- count.

Directed to look into the possibilities to make such payments on installment basis and report back to the Committee. 7 The Committee observed 7 The CAO/AO stated that that the reporting mecha- the new inspection system nism of Labour Officers which is now being imple- presently in practice must mented in the Free Trade be streamlined as there are Zone, will be introduced many shortcomings. island wide in May 2011 if succeeded. The Dept. had prepared a questionnaire covering all relevant Acts and Ordinances which would be introduced in January 2011 and

Labour Audit would be under taken in all District Offices.

The Committee directed to submit the proposals made to strengthen the oversight function of the Department and also to introduce a reg- Contd.. ular transfer system of of- ficers too.

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Department of 8 Legal action had not been 8 Directed to send a report in Labour taken to recover a sum of this regard. Rs.21,795,656 as outstand- ing contributions and sur- charges due from 27 institu- tions.

32. Department of 1 No Annual Performance 1 The Annual Performance Rubber Development report had been tabled in reports need to be submit- Parliament after 2007. ted before the Parliament (M/ Plantation Indus- prior to the budget of the tries) following year.

04 January 2011 2 There were only 18 Rubber 2 Request had been made to Development Officers out the Salaries and Cadre of the total requirement of Commission to recruit the 164. balance. 3 Rubber seedlings, worth of 3 Shortcomings were ob- Rs.125,000 which were served in the subsidy distri- given as a subsidy were in a bution. poor quality and also funds in this regard were not giv- en in time. 4 Since there is a number of 4 Directed to formulate a competitive countries and strategy to change the ex- also a good price for latex, isting attitude among the collection of latex should younger generation. be increased and it should be done in rainy days too. Further it was noted that the younger generation is reluc- tant to engage in this occu- pation. 5 Two block rubber factories 5 Directed to submit a report were not functioning on this. properly. 6 Targets stipulated in the 6 It was revealed that fertiliz- Action Plan had not been er distribution task could achieved with regard to re- not be achieved due to the plantation and fertilizer rejection of the tender, as Contd.. distribution. the samples were found sub-standard.

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Department of Directed to submit a de- Rubber Development tailed report including the particulars of the person who was responsible.

7 There had been difference 7 The matter was explained of Rs.10 million between in detail and the Commit- Departmental and Treasury tee directed to submit a books in the Public Officers report with a copy to Audi- Advance Account. tor General.

The Committee appreciat- ed the Director Finance for his presentation of the facts in a very accurate and pro- fessional manner.

8 No action had been taken to 8 This was a very common recover Rs.385,137 from issue in many departments 07 officers who had retired examined and directed to over 02 years ago. send a report very early.

The Officials of the Treas- ury were instructed to issue a circular enabling the recovery of dues from monthly pension of those who had taken loans. 33. Department of Ex- 1 Entire provisions of 1 When it was informed that ternal Resources Rs.495,000,000 made under major reason for this un- 7 Objects in 2005 and derutilization was the fail- (M/ Finance & Plan- Rs.777,069,997 made under ure of credit mechanism in ning) 9 Objects in 2006 had not the North & East, the Com- been utilized. mittee pointed out that this 05 January 2011 should be brought to the notice of the Governor of the Central Bank as this was a failure of the bank- ing system and also stated Contd.. that the public be made aware of these credit facili- ties.

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Department of Exter- 2 According to the Co- 2 The CAO/AO explained nal Resources operate Plan of the Depart- that due to various reasons, ment for the period 2007 – the money expected had 2009, the expected external not been received. financial resources collec- tion during the year 2007 was US $ 2500 million but the total foreign aid collect- ed as at 31 December 2007 was US $ 1674 million.

3 The expected expenditure 3 As per the CAO, owing to during the year 2007 some regional projects amounted to US $ 2,500 rolled over to the following million and the actual utili- years. zation of total foreign aid as at 31 December 2007 amounted to US $ 1100 million. 34. Department of Of- 1 Annual Action Plans had 1 Directed to send a copy of ficial Languages not been prepared, accord- the Action Plan to the ing to the guide lines given Committee within one in the Public Finance Circu- month. lars. (M/ National Lan- 2 Action had not been taken guages & Social Inte- to implement the following gration) recommendations made by the official languages Com- 20 January 2011 mission. Need of the imple- mentation of their recom- mendations was discussed in the meeting of PAC held on 18 July 2006. (i) Establishment of a new Translation Bureau for Sri Lanka with expertise in translation & interpretation. (ii) Reduction of entry qual- ification giving the diploma holders in translation to be Contd.. entered in to the translators‟ service.

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Department of Official (iii) Enhancement of trans- Languages lation fee, which would be an incentive for people to engage in the translation, & short term translation panel who could do translation to be registered from the out- side people.

The Committee was much concerned over this issue, as most of the state institu- tions are suffering from dearth of translators.

3 It had not been prepared a 3 Directed to send the master master plan as directed by plan incorporating all the the COPA at the previous suggestions. meeting held on 18 July 2006. 4 There were many short 4 It was suggested that teach- comings in the spoken lan- ing written Tamil first guage book in Tamil, used would be more effective to teach for and the CAO/AO was ad- government servants. vised to re-evaluate the spoken language book in Tamil. 5 90% of the income received 5 Income earned on transla- from the translation work tion work should be added had been given to the trans- to the income of the De- lators without making a partment as the translations clear method of distribution are done in the office hours of work. and the allocation of time for translations also needs to be considered. 6 Action had not been taken 6 The Committee stressed to obtain the cabinet ap- that appointment of any proval as per Public Ad- officer above 60 years old ministration Circular No. should be approved by the 09/2007 to employ a retired Cabinet as per the Public Contd.. officer over 67 years of age Administration Circular No as Deputy Commissioner. 09/2007.

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Department of Official 7 The Official Language poli- 7 The Committee especially Languages cy of the government had not decided that this position been implemented due to needs to be reported to the lack of funds. Parliament.

35. Department of 1 2008 – 2010 Annual Reports 1 When it was revealed that Export Agriculture had not been tabled in Parlia- the delay was due to lack of ment. Translators, the Committee (M/ Minor Export expressed its dissatisfaction Crops Promotion) and directed to obtain ser- vice of retired Translators to 08 Feb 2011 finish the preparation of the report and further directed to see the possibilities of creat- ing a panel of Translators to cater all the translation re- quirements.

2 (i) The Department had not 2 (i) To forward a status report taken steps to utilize the within one month with solu- building of Cardamom Re- tions proposed to resolve the search Centre at Gammadu- matter, with copy to the Au- wa in Matale as per the di- ditor-General. rectives given at the previous COPA meeting held on 17 October 2007.

(ii) The ownership of the (ii) Directed to send a de- property owned by the De- tailed report within a month partment of Export Agricul- to the Committee regarding ture at Nelumdeniya Estate the action taken to get the had not been cleared. deeds cleared.

3 The building of Epaladeniya 3 To forward the proposals Betel Centre built at a cost of within a month as to how Rs.17,434,211 was not being this property can be utilized utilized. satisfactorily. Contd..

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Department of Export 4 It was discussed about the 4 New techniques should be Agriculture decreasing of cinnamon introduced as in the tea peelers in the cinnamon industry. industry and enquired the steps taken by the Depart- ment to overcome this.

5 Payments had been made 5 It has been revealed that, for additional potting media orders had been placed cubes at Mapalana Nursery considering the require- without proper estimation. ment of the following year.

6 There were loan balances 6 As per the CAO, action amounting to Rs.165,095 to had been taken to recover be recovered from 5 offic- the maximum dues and the ers. balance to be written off.

The Committee directed to take necessary action ac- cordingly.

7 An Assistant Director of the 7 Since the CAO/AO agreed Department had been paid to release this officer to the Rs.1,059, 425 who had Ministry on full time basis, been released to the Minis- directed to report the situa- try for only 27 days. tion to the Committee within a month.

8 The Export crop processing 8 Directed to do a study on center at Nalanda, Udadeni- the reasons for the failure ya was idling with the of the project and report to equipment and instruments. the committee within a month.

9 Some crops in the export 9 The CAO/AO gave an as- category list had been im- surance to the Committee, ported during the years that the yield could be in- 2008 and 2009, and the creased at least to cater the amount imported had been requirement of the country. increased specially of Saf- fron and Cocoa.

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36. Department of 1 The Performance Reports of 1 The Committee expressed Prisons the Department from 2005 to its dissatisfaction regarding 2009 had not been tabled in the way of forwarding Per- (M/Rehabilitation & Parliament. formance Reports and di- Prison Reforms) rected to take immediate action to table the reports in 10 Feb 2011 Parliament and re-summon the department on 19 April, 2011

Re - examination 1 Presentation of the Perfor- 1 It was observed that the Per- mance Report of the Depart- formance Reports had been Department of Prisons ment of Prisons in Parlia- sent to the Consultative ment from the year 2005 Committee office and not to 05 May 2011 the Parliament and directed to take proper action to pre- sent them in the Parliament.

2 The Committee questioned 2 To find an alternative such about the existing 1123 va- as SLIDA to hold examina- cancies in the department. tions for recruitment, instead of giving that to Department of Examinations and further directed to maintain a wait- ing list to fill up the vacan- cies.

The Committee further in- structed to find a way to recruit Prison Guards from the demobilized Army Sol- diers and to discuss with the Secretary of Defence further to get a solution for same.

37. Department of 1 Action had not been taken to 1 Directed to report to the National Museums conduct the Annual Boards Committee regarding the of Survey on books and pub- current position on the (M/ National Heritage) lications. Board of Survey.

23 Feb 2011 This has been caused by lack of man power. Contd..

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Department of 2 Considerable number of 2 To find out the possibility National Museums vacancies was prevailing in of recruiting SLAS Cadet the Department. trainees in temporary basis through SLIDA.

3 Total loan balances to be 3 The Committee accepted recovered, from 4 officers the explanation except who had been vacated their with regard to property posts amounted to loan and directed to solve Rs.574,720 as at 31 De- this matter and inform the cember 2009. Committee within one month. The Committee further informed the CAO/AO to report to the Auditor Gen- eral regarding court deci- sions related to the recov- ery of loans and also expe- dite the legal process be- fore get lapsed the period of prescription get lapsed. 4 The Committee inquired 4 Directed to develop the whether a programme had National Museum premis- been introduced to moti- es up to the standard level. vate general public and get their attention to visit the National Museum. 5 Action had not been taken 5 It was directed to establish to establish the souvenir the souvenir shop where shop and improve the pub- the general public can lic sales division. easily access and the CAO/AO agreed to do so. 6 The Committee focused its 6 The Committee directed to attention to develop the prepare a proposal for it, National Museum as a part and also appreciated the of a tourism industry. internal modification of 11 galleries done with the patronage with a private bank and encouraged to continue in the same man- ner. 7 The Committee paid its 7 Directed to surrender if attention on selling of en- there is any possibility of trance tickets specially, for misusing tickets. foreigners. 66 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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38. Department of 1 Audit & Management Com- 1 Directed to hold the meet- Co-operative Develop- mittee meetings had not ings regularly. ment been held from 2005-2010.

(M/ Co-operatives & 2 Considerable percentage of 2 It was emphasized the need Internal Trade) savings against the capital of sharp supervision system provisions granted for the to the Department and di- 08 March 2011 years 2005 to 2009. rected to establish a proper supply, purchasing and Continuous complaints re- distribution system. A re- ceived from the Samurdhi port was called in this re- holders on rations issued in gard. poor quality. The CAO/AO explained that Rs.485 millions old There were debts to be re- debts taken from the Peo- covered from the Co- ple‟s Bank had been written operative Societies. off & action had been taken to write off the balance of Rs. 2 billion approximately.

3 The balance of the General 3 The Committee noted the Deposit Account as at 31 complicated system of the January 2011 amounted to data collection of the de- Rs.2.2 Million. partment and emphasized the requirement of a proper computerized system (with updated, supervised and simplified reporting sys- tem) to the Department. 4 Action had not been taken 4 To provide a comprehen- to recover a loan granted to sive report to the Commit- the “Ceyesta” project tee with copies to the Audi- amounting Rs.6.5 Million. tor General.

5 The Committee seriously 5 Since this has been a com- considered the issue of out- mon issue in almost all standing loan balances from government institutions, the advances to public offices Committee suggested ar- account ranging a discussion by the COPA with all Secretaries and responsible Officers from the Ministries and Contd.. Departments with the

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Department of Treasury Officials to find a Co-operative Develop- common solution for this ment issue.

6 The maximum debit balance 6 The Committee pointed out had been exceeded by that it was a wrong proce- Rs.454,890/-. dure and at least a cabinet The Department had issued approval should have been loans to the staff from the obtained. other funds, considering the appeal of the staff and due to non receipt of the hard cash from the Treasury.

7 No Internal Audit had been 7 The Auditor General was carried out by the Depart- directed to look in to this ment and presently it is aspect and assist the De- done by the Internal Audit partment to come out of the Unit of the Ministry. issue. 39. Department of 1 The entire provision of 1 Action had been taken to Land Commissioner Rs.1,000,000 made for the distribute 400 plots of pad- General Saddhatissa Project had not dy lands among family been utilized. units of Farmers. (M/Land & Land De- According to the CAO/AO, The Committee also con- velopment) 400 plots of land relevant to sidered about the devolu- this project have to be dis- tion of power of the Land 22 March 2011 tributed among the farmers, Commissioner General‟s and until it is done the pro- Department by the 13th vision had not been allocat- Amendment and suggested ed. to microfilm the land rec- ords in order to avoid future confusions. 2 The target to issue 10,000 2 Action had been taken to Jayabhoomi Awards yearly accelerate the programme from 2004 to 2009 had not through “Bimsariya” Pro- been reached. ject. The Committee was not satisfied with the given explanation. 3 Action had not been taken 3 The Committee emphasized to recover the rent of 74 on the utilization of these Contd.. houses and buildings and buildings and instructed to there were unauthorized release these buildings to

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Department of Land occupants in 33 houses government Departments Commissioner General whereas 28 buildings re- and Institutions for their mained idle. purposes. Legal action had already been taken against the un- authorized occupants.

4 The Committee considered 4 The Committee empha- the issue of outstanding sized the need of a com- loan balances and found out mon mechanism to simpli- that this has become a situ- fy the recovery of loans ation common to most of and directed to convene a the Government Institu- meeting with all responsi- tions. ble officers to identify the difficulties of recovering loan balances. 5 Outstanding balances of 5 Considering the amount of housing loans given to the loan balances and period of land owners of the Kirindi time during which they Oya Project was amounted were outstanding, the to Rs.9,129,095 as at 31 Committee directed the December 2006 and this CAO/AO to request the was equivalent to 45% of Treasury to see the possi- the value of loans granted bilities of writing off these for last 17 years. balances.

6 The Committee drew its 6 The Committee empha- attention on the rapid in- sized that the estimates crease in revenue in arrears could have been revised since 2006 and the arrears and the CAO/AO was di- for the year 2009 had been rected to regularize the increased by 140% com- whole work early. pared to 2006. 40. Department of An- 1 Two deep freezers and 128 2 The Animal Virus Labora- imal Production & Hydroxide chemical canis- tory at Polgolla had been Health ters had been idling for closed down in 1994 and more than 12 years. as such, the particular ma- (M/Livestock Devel- chines and equipment were opment & Rural Com- not being used and by now, munity Development) action was being taken to resume the functions. 23 March 2011 The Committee‟s concern was that, why a decision to Contd.. close down was taken at

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Department of Animal that time without consider- Production & Health ing the wastage of the equipment. The Committee directed to probe into this matter & also report it to the Com- mittee. 2 Actions were being taken 2 Directed to open a new to establish a new Live- centre at Wariyapola with- stock Testing Centre in out closing down the one Wariyapola, closing the at Pannala and to report on existing Centre at Pannala. the action taken including the names of the officials who recommended closing the Pannala Centre. 3 It was reported a destruc- 3 To find the officials ac- tion of 170,330 tubes of countable for this wastage cattle semen valued at and also to report to the Rs.1,419,554 due to period Committee within 2 being expired. weeks, and further di- rected to re-summon the Department. Re - examination 1 The Committee questioned 2 The CAO/AO was di- whether the Department rected to get the assistance Department of Animal can provide any technical of the Ministry of Envi- Production & Health assistance, to the estate ronment, as this relates to sector cattle sheds owners the Environmental Law, 07 June 2011 to dispose the waste of and also to request the their cattle as these farmers Police, not to prosecute had been prosecuted by these farmers until they the environmental police are given a redress for this and each of them were issue. fined Rs.15,000 by courts. 2 The Committee queried 2 Due to some technical about the Animal Virus defects production of vac- Laboratory at Polgolla and cinations have been the artificial insemination. stopped for foot and mouth disease and by next year production would be started. 3 The position of milk pro- 3 It was stated that, only if duction to meet the need of the lands in Saba- the country was ques- ragamuwa Province and tioned. North Western Province are used for 70 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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milk production, the target can be achieved easily.

41. Department of 1 The Committee enquired 1 The Committee directed to Irrigation the current position of the provide a comprehensive Sugaladevi Wewa and report on the present posi- (M/ Irrigation and Wa- Welioya Projects. tion. ter Resources Manage- The Committee questioned The CAO/AO agreed to ment) about the disciplinary ac- study the matter further tion proposed by the Inter- and report back to the next 24 March 2011 nal Audit division of the Committee meeting. Ministry on 2007/07/10 based on the report issued by the Presidential Investi- gation Division regarding some malpractices taken place in above projects. 2 The payment system of the 2 To discuss with the Audi- Department had been con- tor- General to clarify the stantly queried by the Au- pattern of the payment ditor General as it was not system as per the FR regu- matching with the financial lations. regulations. 3 Action had not been taken 3 The Committee was not against 38 officers of the satisfied with the punish- Department who had ob- ments given and directed tained Property Loans to write to the Attorney- amounting to General for his observa- Rs.11,604,500/- for plots tions and report back to of land situated in Kantha- the next Committee meet- niyagama Galgamuwa by ing. submitting fraudulent doc- The Committee categori- uments. cally stated that the officer approved payment was also to be taken into task 4 There were some short 4 The Committee was of the comings in purchasing of view, that the technical 10 concrete mixtures for evaluation committee had Veheragala Project. not given proper technical advice and directed to report back to the Com- mittee having done an Contd.. investigation and also tak- en disciplinary action against the Employees responsible. 71 Parliamentary Series No. 240

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Department of 5 The estimated repair cost 5 The CAO/AO assured the Irrigation amounting to Committee that he would Rs.210,000 of a double cab take steps to recover the of the Department that had amount from the pension of met with an accident on the officer after legal Ac- 25.06.2007 had not been tion. recovered from the respon- sible officer and he had been allowed to retire.

Re-examination 1 It was questioned about the 1 The Committee expressed disciplinary actions pro- its dissatisfaction over the Department of Irriga- posed by the Internal Audit given punishments and tion division of the Ministry on directed to take legal action 10.07.2007 based on a re- in addition to the depart- 07 June 2011 port issued by the Presiden- mental action, under the tial Investigation Division penal code as these mal- regarding some malpractic- practices amount to crimi- es taken place in the nal offences and also to Sugaladevi and Welioya report to the committee Projects implemented by within two weeks. the Irrigation Department. 2 The prevailing payment 2 To discuss the matter with system of the Department the Auditor General‟s De- was not in accordance with partment forwarding the the Financial Regulations. Circular issued by the De- partment in this regard and report back to the Commit- tee if the proposed system does not match with the Financial Regulations. 3 The Committee questioned 3 The Committee which was about the obtaining of Prop- not satisfied with the disci- erty Loans valued at plinary action taken di- Rs.11,604,500.00 by 38 rected the CAO/AO to; officers submitting fraudu- (i) Get the opinion of the lent documents. Attorney General, (ii) Take legal action im- mediately under criminal law having complained to the police on these 38 of- ficers Contd.. (iii) Report to the Commit- tee within two weeks hav- ing taken action accordingly

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Department of 4 10 Concrete mixtures pur- 4 To make a departmental Irrigation chased for Veheragala Pro- inquiry against the officers ject which were not in ex- of the Technical Evalua- pected level. tion Committee and take legal actions against the supplier to recover the losses by consulting the Attorney General and re- port back to the Commit- tee within a month.

42. Department of 1 Annual Board of Survey in 1 To submit the report with- Government Analyst 2009 had not carried out. in 02 weeks. Action had not been taken Directed to submit the due (M/Justice) to submit the Annual reports immediately. Board of Survey Report for 2009 and also the Corpo- 05 April 2011 rate Plan. 2 Considerable number of 2 The Committee instructed vacancies prevails in the the Treasury to work with Department. the Ministry of Public Administration & Home Affairs to fill these vacan- cies. 3 Action had not been taken 3 It was directed to complete to complete the construc- the construction work of tion of new building com- buildings before the end of plex & the Laboratory. The this year. Committee pointed out that Rs.150 million had been granted by the Treasury for the particular purpose this year. 4 04 officers had been inter- 4 The CAO/AO explained dicted w.e.f. 15 October that the issue was being 2007 in relation to irregu- investigated by the De- larities taken place in the partment of Criminal In- drug laboratory of the De- vestigation and also the partment. Even though the Attorney General had been report of initial investiga- informed over the matter. tions should be issued im- With regard to other few mediately in terms of sec- officers, disciplinary in- Contd.. tion No. XLVIII of the quiries are being conduct- Establishment Code, it had ed after conducting initial been delayed for 3 years. investigations. 73 Parliamentary Series No. 240

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Department of The Committee stated that Government Analyst the Government Analyst should not involve with administrative matters of this kind and that a sepa- rate officer in charge must be appointed instead.

The CAO/AO was di- rected to focus more atten- tion on this issue & submit the report within 2 weeks.

5 The Department had not 5 As per the CAO/AO, this taken action regarding the was due to the scarecity of 15,523 number of speci- scientific service officers mens at the end of the year and action had been taken 2010. to recruit 15 Assistant Government Analysts. While not accepting the explanations directed to re -summon the Institute within 2 weeks for further clarification. Re - examination 1 The Committee discussed 1 The Secretary to the Min- about the considerable istry of Public Administra- Department of Gov- number of vacancies in the tion & Home Affairs was ernment Analyst Department and questioned directed to report to the the Secretary to the Minis- Committee within one On 05 May 2011 try of Public Administra- month having filled the tion & Home Affairs as to existing vacancies. why the vacancies had not been filled. 43. Department of 1 There was a massive 1 To be reported back to the Police amount of savings against Committee with regard to the capital provisions in the those savings and the mal- (M/ Defence) years 2005 to 2009 and practices taken place in the some malpractices taken projects very early. 06 April 2011 place in several projects, which had created loses to the department. Contd.. It was reported that there had been 200 million sav- ings in the year 2010, too.

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3 Action had not been taken 3 The Committee instructed in terms of FRR to recover to take action against the the balances of unsettled Officers who were respon- advances on foreign trips, sible on negligence of the traveling and lawyer fees recovery. etc.

4 The Department had not 4 The major concern of the taken action to recover a Committee was that as to sum of Rs.2,542,611/- in why the contract had been relation to abandonment of given to financially unsta- 03 contracts relating to con- ble private companies with- struction of buildings in out considering of Govern- three Police stations namely ment (construction) institu- Gampaha, Hanguranketha tions. and Panadura. The CAO/AO informed that this company has been black listed and all the con- tracts would be given to CECB in future.

5 The Committee seriously 5 The Committee stressed considered the huge amount that the responsibility re- of losses incurred due to garding these irregularities following irregular transac- lies on the Internal Audit of tions reported in the Auditor the Department. General‟s reports from 2005 to 2009. It was directed to hold an (i) Purchase of Cupboards – investigation on this mater Estimated loss and take action against the Rs.12,297,975.00 persons who were responsi- (ii) Purchase of Barbed wire ble and to send a full report rolls – Estimated loss to the Committee. Rs.233,000.00 (iii) Purchase of Block stone The CAO/AO undertook to machines – Estimated hold an inquiry by the CID. Contd.. loss Rs.118,500.00

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Department of (iv) Purchase of Polysack Police bags – Estimated loss Rs.327,750.00

(v)Purchase of Steel double beds – Estimated loss Rs.7,488,800.00

(vi) Rs.30,518,867.00 had been credited to the Po- lice Reward fund contra- ry to the Circular No.PA/272 dated 29.12.2004 of the Sec. to the President

6 The Committee considered 6 Directed to report to the seriously the following Committee with the officers administrative weaknesses responsible, having done an committed. investigation.

(i). Overpayment made to the CECB was amounted to Rs.4,359,759/- on the construction of the Na- walapitiya Police station building.

(ii). Certification of bills exceeding the amount of work done in respect of the contract awarded to the CECB, for recon- struction of the building of the Police station Tan- galle.

(iii). Loss incurred to the Govt. due to abandon- ment of the contract awarded to the SMA Constructions,

Contd..

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Department of regarding the security wall Police and the drainage system of the Police station Kiriella, subsequently re- awarded to the CECB.

(iv). Loss incurred to the Govt. by the contract given to a private company to con- struct the Police station at Walasmulla

7 The Committee drew the 7 Instructed to completely attention on the Internal revamp the Internal Audit Audit Section of the Depart- Section and also to initiate ment of Police. inquiries on all cases where the Auditor General has discovered and report back to the COPA with the names of the people who are responsible and also report to the Commission to Investigate Allegations of Bribery & Corruption.

44. Department of Na- 1 The Committee enquired 1 The CAO/AO was directed tional Zoological Gar- about the Zoological Gar- to look into the matter seri- dens dens Development and Wel- ously of not maintaining fare Fund of the Department two separate accounts for (M/Economic Devel- of Zoological Gardens the fund and the day to day opment) amounting to Rs.903 million transactions and to discuss appeared in the financial with the treasury to change 03 May 2011 reports of 2010 which is the prevailing accounting physically not available. system and sort out this problem within two weeks.

The Committee decided to postpone the meeting and to re-summon after solving the problem.

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Re-examination 1 The present Director has 1 Directed to see the possibil- been holding the post in ity of making this appoint- Department of acting basis for more than ment permanent as this hin- National Zoological five years. ders the development of the Gardens institution.

23 November 2011 2 The Committee questioned 2 Directed to identify the ca- whether the department had dre requirement and submit made proposals regarding the same to the Treasury cadre revision to the Treas- and report back to the Com- ury. mittee within a month.

3 The Committee discussed 3 The Committee advised to about Zoological Gardens use the fund for the pro- Development and Welfare gress of the department. Fund of the Department of Zoological Gardens amount- ing to Rs. 903 million ap- pearing in the financial re- port of 2010. 4 It was discussed about estab- 4 Directed to submit a copy lishing of a Zoo at Wagolla, of the Master Plan to the and expressed its dissatisfac- Committee and advised to tion over the slow progress. prepare a full budget pro- posal for the whole project and submit it on phase basis to the Treasury to obtain funds.

The Committee decided to re-summon the Department on another day to discuss Contd.. further about the New Pro- ject.

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Department of 5 The Internal Audit Unit 5 The CAO/AO was di- National Zoological had not been established in rected to expedite the pro- Gardens the Department yet. cedure.

The CAO/AO has made requests to the respective authorities, to provide nec- essary staff for the Internal Audit.

6 75 employees who were 6 Directed to see the possi- not in the approved cadre bility of absorbing them to had been employed at the permanent cadre hav- Dehiwala, Pinnawala and ing obtained the required Gonapola and a sum of approvals. Rs.7,494,688/- had been paid as their salaries and wages under capital items. 7 The monthly rental of 7 Instructed to expedite the Rs.627,000/- of the can- procedure taken by the teens had been reduced by department in this regard 50% (Rs.313,500/-) in Oc- to recover the loss. tober 2009 owing to the fact that the sales have been reduced due to the prohibition of food items with polythene covers. But subsequently it had been observed that food with polythene covers were available for sale. 8 Only Rs.43 million had 8 When it was stated that the been spent, out of the relevant bills have not yet Rs.300 million allocated been submitted by the for the construction of Sa- State Engineering Corpo- fari Park in Hambantota for ration of Sri Lanka (SEC) the year 2011. for making payments, the Committee directed to summon the relevant of- ficer of the SEC also to the next meeting.

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45. Department of 1 The committee discussed Excise about the directives given at the previous COPA meeting (M/Finance & Plan- held on 22 July 2003 and ning) the position on implementa- tion. 04 May 2011 (i) Directive No. 01 It was considered that To prepare outstanding keeping unidentified mon- Bank Reconciliations and ey for a long time, could submit them to the audit lead to a fraud and the within two months. Committee was not happy with non completion of the It was observed that even task up to now. though the Department had regularized the matter at Directed to complete the present, a considerable work and report back to the amount of arrears is still to Committee within 3 be reconciled. months.

(ii) Directive No. 02 To send a report within 3 To adjust the debit balances months in this regard. in the Advances to Public Officers „B‟ Account within 01 month.

The Department had not complied with the direc- tions given and there is still Rs.648,622/- to be recov- ered from 11 interdicted officers and Rs.110,004/- from 2 officers who had vacated their posts. (iii) Directive No. 03 When it was revealed that Action should be taken to the Internal Audit Unit has prevent the corruption pre- only 3 persons, the Com- vailing in the Department. mittee stressed the need of strengthening it stating that The Committee enquired efficient Internal Audit whether the adequate num- could reduce corruption. ber of staff and vehicles are available in the Department Contd.. at present, for its smooth functioning.

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Department of Excise 2 The Committee questioned 2 The Committee showed its about the inspection of a extreme displeasure on the liquor factory carried out delay in taking actions by the Commissioner Gen- against the officers of the eral of Excise on 11 De- Department who were cember 2010 which re- responsible of this incident vealed a stock of liquor on as they had defrauded which duty had not been large amount of public paid. An order had been funds. issued to pay Directed to take immedi- Rs.99,700,864/- as the duty ate actions on the follow- and Rs.4,000,000/- as pen- ing; alty. (i) make a complaint in the Police Station of the rele- vant area based on the findings (ii) hold the departmental inquiry 3 It was enquired whether 3 As per the CAO/AO, 04 the remaining staff of the Internal Audit Officers Internal Audit Unit was together with 04 officers adequate in view of the in the Manufacturing Unit limited number of inspec- would be sufficient. tions undertaken, and the transactions taken place in billions. 4 The revenue to be collected 4 Action would be taken to in respect of two revenue recover the arrears in in- accounts, had gone into stallment basis with inter- arrears amounting to est rate of 03%. Rs.529,315,117/- of which Rs.458,977,361/- had been more than 04 years old. 5 The balance in the General 5 It had been revealed that Deposit Account as at 31 these amounts are the re- December 2007 was fundable deposits for liq- amounted to uor sales outlets. Rs.63,396,087/-. 6 Even though a nil report on 6 A case had been filed losses and damages had against the officer to re- been disclosed in the Ap- cover Rs.700,000/- out of propriation Account, 10 the total amount of losses. accidents were observed in Contd.. audit causing losses

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Department of Excise amounting to Rs.1,414,528/ - from 2006 to 2008.

46. Department of For- 1 There was a large amount 1 As per the explanation, eign Aid & Budget of under utilization of Capi- savings in 2007 were due Monitoring tal Provisions in respect of to shifting of the office, in the years 2009 due to strict financial (M/Finance & Plan- 2006,2007,2008,2009 & control and no payment had ning) 2010. been done in 2010 due to an error. 25 May 2011 2 It was observed that a con- 2 To make a common set of siderable number of Foreign instructions applicable to Funded projects over US $ the projects and report back 5 million were fallen into to the Committee. category of Behind the Schedule. 3 No internal audit unit and 3 Ministry Internal Audit Audit & Management Com- Unit oversees the functions mittee Meetings. of the Department. 47. Department of Me- 1 It was discussed about the 1 The Department of Man- teorology 55 vacancies prevailed in agement Services was in- the Department. structed to look into this matter favourably. (M/Disaster Manage- 2 The Committee questioned 2 Directed to expedite the ment) as to why the construction constructions. of the Meteorological De- 08 June 2011 partment Office at Jaffna and Trincomalee had been delayed. 3 It was questioned as to why 3 Considering the rapid the department had not pur- changes occur in the envi- chased the Thunderbolt ronment at present, the Forecast System since 2007. Committee stressed the need of new equipment and suggested to purchase both Thunderbolt Forecast sys- tem as well as the Doppler Radar.

The Committee strongly Contd.. recommended the Depart- ment of National Budget to

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Department of look into this matter fa- Meteorology vourably.

4 Action had not been taken 4 Directed to get the approv- to recover or write off the al from the Treasury and losses over Rs.25,000/- and write off losses which four cases older than 10 could not be recovered. years which was amounted to Rs.1,065,121/-. 5 38 automatic meteorologi- 5 Out of 35 systems in- cal systems valued at stalled, 31 are in working Rs.735 million received in condition and would in- the year 2008 as an aid stall other 03. from Japan (JAICA) had been installed in other cen- tres except at Ampara, Jaff- na and Trincomalee as at 31 May 2011. 6 As the frequency of light- 6 Serious requirement of ning has increased at pre- lightening detectors were sent, the Committee point- observed by the Commit- ed out the importance of tee and the CAO/AO enhancing public aware- agreed to attend this issue ness in this regard. at national level. 7 Internal audit had not been 7 It was informed that this carried out in the 21 Mete- was due to non availability orological Offices all over of senior officers of the the country and also an Management Service, audit plan had not been therefore, the Committee prepared. directed to request the Secretary to the Ministry of Public Administration and Home Affairs to pro- vide at least a few senior Management Assistants to the Ministry of Disaster Management. 8 A sum of Rs.1,081,141/- 8 The CAO/AO admitted which had been received the fault and assured the from the World Meteoro- Committee that this kind logical Organization of short coming would not (WMO) during the year be occurred in the future. 2009 to make awareness

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Department of programme for the farmers Meteorology on Meteorology and Cli- matology had not been properly used and a saving of Rs.435,251/- had been returned to the World Me- teorological Organization (WMO)

48. Sri Lanka Navy 1 Submission of advance 1 The Advance Account for accounts in last five years the year 2010 had already (M/Defence) had been delayed beyond been submitted and the the stipulated date. CAO/AO assured to sub- 09 June 2011 mit the account in time in the future.

Directed to submit the Advance Accounts with- out delay. 2 The audit queries had not 2 Directed to pay more at- been properly responded. tention on this.

3 Loans recoverable as at 3 The CAO/AO stated that 31 December 2010 they had traced the recov- amounted to erable loan balances Rs.41,182,323/- and the amounting to Rs. 34 Mil- Committee wanted to lion and as a result Rs.3.6 know whether the action Million had been recov- had been taken to recover ered and the recovering these loans. process was being contin- ued.

Immediate action to be taken to recover these bal- ances and a report was called within three months to the Committee.

With regard to the other loan balances amounting to Rs.55,085.00/- aging over Contd.. 05 years, the Committee directed to discuss with the Auditor General to come up with an effective solution. 84 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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Sri Lanka Navy 4 Out of the advances paid 4 It was informed that ac- by the cheques in respect cording to the difficulties of procurement of goods the Navy had faced when and services amounting to purchasing goods, they Rs.87,174,597/- as at De- had been compelled to cember 2009 and apply that procedure. Rs.111,197,371/- during the year 2010 had not been settled.

It was also observed that The Committee empha- advances of sized that the accounting Rs.29,633,105/- had been system of the Navy was paid to the supplier by 48 totally incorrect and di- cheques during the period rected to streamline the from the year 2005 to 2008 accounting procedure im- before receiving goods and mediately. services contrary to F.R.R.

5 It was questioned as to 5 The CAO/AO stated that it why the interest amounting had happened during the to Rs.42,094,151/- had war period in foreign ex- been paid to a Bank due to change components with non settlement of a LC the approval of the Treas- opened amounting to ury. Rs.2,379,993,049/- and also observed that there Directed to discuss the had been similar instances matter with the Auditor in 13 times previously. General and come up with a solution. 6 The Committee observed 6 The CAO/AO while ad- that the sub-imprest pay- mitting some delays in ments exceeding transactions during the Rs.20,000/- (which is the war period undertook to sealing as per the FRR) have strict adherence to had been paid in 17 and 08 the rules and regulations in instances during the years the future. 2009 and 2010 respectively contrary to F.R. and there had been an outstanding balance of Rs. 4.2 Mil- lion, although such ad-hoc advances should be settled Contd.. immediately after the com- pletion of the purpose.

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Sri Lanka Navy 7 (i) The Bank Reconcilia- 7 (i) To send Bank State- tion Statement relevant to ments before the 15th of the Account bearing the following month in No.0007041344 of the the future. Navy Head office for the months of March and April 2011 had not been prepared even up to 31 May 2011.

(ii) The Committee further (ii) Directed to discuss observed that the petty with the Auditor General cash imprest limit of in this regard. Rs.5000/- had been ex- ceeded up to Rs.25000/- without obtaining required approval. 8 As per the annual accounts 8 It was stated that a Board pertaining to the Stores had been appointed to Advance Account, there look in to this. had been a deposit balance of Rs.1,296,690/- and any Directed to submit an source document pertain- interim report in 03 ing to that amount had not months and the full report been furnished to the Au- in 06 months. dit, and also action had not been taken to identify or settle such balances even up to June 2011. 9 The Committee also ques- 9 When it was informed tioned as to why the action that the action had already had not been taken on 107 been taken on that losses losses amounting and the relevant report Rs.99,593,394/- incurred had been sent to the Min- during a period less than istry of Defence, the 05 years. Committee directed to send that repot to the Au- The Committee observed ditor General and further several instances where directed the CAO/AO; the persons responsible for (i) to take action to curb such losses had retired or the bribery and corrup- vacated their posts at the tion in the Navy. Contd.. time of fixing responsibil- ity after several years.

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Sri Lanka Navy (ii) to report with the names of the people who are responsible for (iii) to report what action had been taken against them and what steps will be taken to recon- cile the accounts within three months.

1 Spare parts of Yanmar en- 1 Steps had been taken to 0 gines had been purchased at 0 stop that wrong procedure. a cost of Rs.3,015,599/- from the Browns Group Considering the loss of Industries Ltd, on 22 May large amount of public 2009 violating the Procure- money, the Committee ment Guidelines on goods directed to handle it care- and services -2006 and a fully and apply the correct similar instance on pur- method for the system im- chase of fuel – Shell Gardi- mediately. thiyar 40. 1 The Committee observed 1 The CAO/AO stated that 1 that the agreement had been 1 the said project had been cancelled with the NCASL done as a welfare project Construction (Pvt.) Ltd in by using “Api wenuwen respect of construction of Api” funds and the allocat- Ranaviru Housing Scheme ed funds had been utilized at Ipalogama and the con- for the other welfare work. struction work had been subsequently assigned to Instructed to inform the the Sri Lanka Navy, alt- correct situation of the hough it was agreed to pay projects to the Auditor the salaries to thousand General.The CAO/AO volunteers recruited for this stated that the said project purpose, from the money had been done as a welfare allocated for the relevant project by using “Api housing scheme. Salaries wenuwen Api” funds and paid the Sri Lanka Navy the allocated funds had had also not been reim- been utilized for the other bursed by the project funds. welfare work.

Instructed to inform the Contd.. correct situation of the projects to the Auditor General.

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Sri Lanka Navy 1 Actual requirements did not 1 The finger print machines 2 reach by the 12 finger print 2 used not only to record machines purchased to the arrival and departure; it Navy Head Quarters.Actual had been used for the Ad- requirements did not reach vanced security purposes by the 12 finger print ma- during the war time. chines purchased to the Navy Head Quarters.

1 It was observed that the 1 To prepare a complete Ac- 3 Navy had not prepared an 3 tion Plan including the Action Plan for each year expenditure, the targets and from 2005 to 2010 and the the responsibilities in detail action plan prepared for the and to send it within three year 2011 had not been months. reached the basic require- ments.

49. Office of the Lead- 1 Action Plans for the years 1 The Committee accepted er of the House of Par- 2008 and 2009 had not the explanations given by liament been prepared. the CAO that, in view of the nature of the duties 21 June 2011 assigned it is difficult to formulate an Action Plan.

2 Fuel valued at Rs.8,860/- 2 The CAO stated that this had been obtained on a Fuel vehicle had been used as a Order for a motor vehicle dummy due to security which was not in a running condition prevailed. condition.

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50. Office of the Lead- 1 The institution had entered 1 Directed to submit respec- er of the Opposition of into commitments exceed- tive approvals of the Treas- Parliament ing the provisions by ury to the Auditor General. Rs.863,958/- and 21 June 2011 Rs.1,938,557/- in the years 2008 and 2009 respectively.

2 Annual Action Plans for the 3 The Committee while ac- years 2008 and 2009 had cepting the fact that the not been prepared.Annual work done by the institution Action Plans for the years is different from other de- 2008 and 2009 had not been partments directed the CAO prepared. to prepare Annual Action Plans in the future.

3 A Register of Fixed Assets 3 The committee directed to and a Register of Computer submit the Fixed Assets Accessories & Software had Register to the Auditor not been maintained by the General after completion. institution. 51. Department of Val- 1 There were 103 vacancies in 1 The Committee was in- uation the staff grades, 17 vacan- formed that, staff grade cies in the non-staff grades vacancies are filled from (M/Finance & Plan- & 26 vacancies in the junior the graduates of the Estate ning) grades in 2010. Management and Valuation of the University of Sri 22 June 2011 Jayewardenepura.

Although there were 87 vacancies in valuation ser- vices, only 60 vacancies could be filled and non- staff grades vacancies are to be filled by the Ministry of Public Administration & Home Affairs. Directed to inform the Sec- retary to the Ministry of Public Administration & Home Affairs regarding non staff grade vacancies Contd.. and come up with an imme- diate solution.

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Department of 2 There had been a large 2 It was informed that due to Valuation amount of under utilization the delay committed by the of Capital Provisions in Department of Buildings, respect of the year 2005. no payments had been made on the renovations of lift & sewerage system, in 2005

3 Action had not been taken 3 The CAO/AO stated that to collect the arrears of rev- Rs.103 million was to be enue during the years 2005 recovered from the UDA, to 2009 amounting to SLRDC and rest of the Rs.56,615,754/- and the amount was to be recov- Revenue Estimate had not ered from the other state been prepared for the years corporations. 2008 and 2009. In 2008, valuation charges in arrears, amounting to Rs.284 million due from the government-affiliated institutions was written off by the cabinet memoran- dum.

He further stated that as per the instructions given by the Treasury, after 2008 the valuation report had to be prepared free of charge for the institutions funded by the Treasury.

The Committee directed the Treasury to involve in this matter and also wanted the Treasury to allocate funds to the Department of Valuation without sending Contd.. them to the Corporations, Boards etc. which get the service of the Valuation Department.

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Department of 4 Action had not been taken 4 The CAO/AO explained Valuation to recover the loan balances the action they had taken amounting to Rs.8,760/- to recover these loan bal- and Rs.97,603/- which is ances. outstanding for more than 10 years. A report was called stating the latest position of these balances, having written off the balances that could not be recovered after get- ting the approval of the Treasury. 5 A sum of Rs.20 million had 5 As the CAO/AO stated been paid to the Central that before making this Provincial Council with payment, he had obtained regard to the construction the approval of the Minis- of Provincial Office and try of Finance, he was di- Training Centre in Kandy, rected to send the letter of before the action taken in approval to the committee accordance with the con- with copy to the Auditor tract. General. 52. Sri Lanka Air 1 The Committee enquired 1 The CAO/AO replied that Force about the Heli Tours, oper- it was operated by a corpo- ated under SL Air Force ration formed under the Sri (M/Defence) which was not a key func- Lanka Air Force, which tion of the Air Force and handle the civilian 23 June 2011 wanted to know whether it transport as a service with- was profitable. out making profits.

The Committee was of the view that the passengers are being exploited by charging high air fare by the Heli Tours and sug- gested to write to the Civil Aviation Authority with regard to this matter. 2 There were 3,772 and 607 2 When the Committee was vacancies in Services and informed that the cadre of Civil grades respectively. 17,000 in 2005 had been increased up to 38,000 during the war and at pre- Contd.. sent no need to maintain such a huge carder, the Committee directed the CAO/ AO to 91 Parliamentary Series No. 240

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Sri Lanka Air Force inform the Treasury on this position to bring down these numbers. The Committee appreciat- ed the Air Force on the way they conducted during the war without allega- tions.

3 The reports requested at the 3 The CAO/AO stated that previous Committee meet- the relevant reports were ing held on 25 November submitted on 15.03.2005. 2004 had not been submit- The Committee was not ted to the Committee Sec- satisfied with the given retariat in time. reply as what had been sent was only a letter and not a report and the CAO/ AO was directed to submit a detailed report within one month with copy to the Auditor General.

4 Action had not been taken 4 According the CAO/AO, to recover the outstanding action had already been loan balances amounting to taken to recover these bal- Rs.19,615,764/- in 2009 ances and there were diffi- and it had been increased culties of recovering loans up to Rs.23,466,822/- in from the officers who had 2010 and the balances older died and retired from the than 10 years amounted to service. Rs.4,551,789/- at the end of 2010. The committee directed to discuss with the Treasury and write off the dues and further, a detailed report was requested on each and every case within one Contd.. month with copy to the Auditor General.

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Sri Lanka Air Force 5 Balances in the General 5 It was stated that the funds Deposit Account over two received for purchase of years amounted to microwave equipment and Rs.18,244,268/- and to construct a runaway at Rs.32,691,716/- in 2009 & China Bay air field could 2010 respectively. not be utilized since they were not implemented.

6 The Committee enquired 6 The CAOAO stated that about the allowances paid those allowances had been for officers gone abroad on paid as per the provisions scholarships amounting to laid down in the circular. Rs.455,242/- and Rs.1,576,62/- in 2009 and Having accepted the reply, 2010 respectively. the Committee stated that had the explanation been sent to the Auditor Gen- eral, this would not have reported in the Auditor General‟s report and di- rected the CAO/AO to submit the explanations to the Auditor General in time in the future.

7 A purchase of Goods and 7 It was informed that, it had Air conditioner was report- been done as an urgent ed at a cost of requirement before the Rs.10,758,009/- contrary to procurement Division was the Tender Procedure. re-established in 2009 and it had already been report- ed to Departmental Pro- curement Committee.

The Committee stated that there was no such urgency to purchase an Air condi- tioner violating the tender procedure and directed the Contd.. CAO/AO to follow the accepted procedures laid down in the FRR.

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Sri Lanka Air Force 8 It was observed that there 8 The Committee having was Rs.457 Million to be observed that this situation paid to the CPC, even had occurred as the Air though the respective regis- Force had not maintained a ters maintained by the SL proper reconciliation sys- Air Force, did not reflect tem directed the CAO/AO such a due as at 01 to streamline it. January 2009.

9 A stock of concrete wires 9 According to the CAO/AO, (477.6 Metric Tons) pur- the price of iron had varied chased at a cost of three times during this peri- RS.69,837,423/- in the year od and however all these 2008, left over for six iron had already been uti- months without being uti- lized. lized causing a loss of about Rs.15 Million. 1 A large amount of goods 1 It was stated that they are 0 valued at Rs.5,568,107/- 0 obsolete spare parts which had been lying idle in the have been decided to be stores without being issued destroyed. from 10 to 25 years. 1 30,000 rolls of barbed wire 1 This has been done in 2007 1 had been purchased for 1 as per the instructions giv- Rs.136 Million contrary to en by the Ministry of De- the provisions of procure- fence, concerning the secu- ment guild lines and liqui- rity of the air crafts. date damages amounted to Rs.2,684,866/- which had The Committee empha- not been recovered due to sized that the Auditor Gen- the delayed supply. eral should have been in- formed in this regard. 1 The Committee discussed 1 The CAO/AO replied that 2 about the Playground locat- 2 they hire the grounds and ed in Colombo which be- give certain amount of in- longs to the Air Force had come to the funds like “Api been rented out to external Venuven Api”. parties and the income had not been credited to Reve- The Committee stated that nue. the relevant income should be deposited in the Consol- idated Fund.

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53. Sri Lanka Army 1 The Committee considered 1 The Committee emphasiz- the letter sent by the Com- ing the importance of the (M/Defence) mander of the Army in- presence of the Head of forming his inability to the Department at the 05 July 2011 appear before the Commit- Committee, decided to tee as he was out of the postpone the meeting. country on official busi- It was also directed that a ness. policy must be established to make compulsory the presence of the head of the relevant institution to CO- PA meetings in future.

54. Sri Lanka Customs 1 It was enquired about not 1 The CAO/AO stated that making the amendment to this will be finalized by the (M/Finance and Plan- the Customs Ordinance for end of 2011. ning) the delegation of powers to The Committee expressed the Director General of its dissatisfaction regard- 06 July 2011 Customs to collect Excise ing the delay. Duty as approved by the Cabinet of Ministers in the Year 1993.

2 The Department had not 2 It was explained that these replied to the directives companies had passed en- given at the previous meet- tries through BOI, not ing held on 07 March through the Sri Lanka Cus- 2007 in time and inquired toms but since 2006, the about not reporting on system had been modified fraudulent export and im- to avoid such mistakes. port registration and Further, it was informed providing wrong commer- that the Multi Sacks Com- cial reports by the 04 com- pany was connected with panies including Multi the VAT fraud taken place Sacks. in the Dept. of Inland Rev- enue and it had no connec- tion with the Sri Lanka Customs.

While accepting the expla- Contd.. nation given, the Commit- tee directed to send a fresh report on this.

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Sri Lanka Customs 3 The amount of arrears of 3 The CAO/AO stated that revenue had been increased they had to release goods heavily from Rs.03 billion imported for government to Rs.09 billion from 2005 projects under provisional to 2010. entries as ordered by the Department of Fiscal Poli- cy which would be settled during the following years which resulted the increase of arrears of revenue. He further stated that a new system had been intro- duced by the Treasury to overcome this issue.

4 A company had not fur- 4 The CAO/AO requested nished sales invoices and some more time to reply tax reports required for the and the Committee directed payment of Excise Duty to submit a detailed report and not paid the duty on within three months. 269 chassis imported while the Bank Guarantees fur- nished by the Company had also been expired. 5 04 companies which had 5 The legal actions had been not paid Excise Duty taken against the compa- amounted to nies to recover the due Ex- Rs.172,781,322/- payable cise Duty and proceeds from the year 2004. further with the matter. 6 04 scanners purchased for 6 The Department had a US $ 15,600,000 had been problem with installation underutilized. of the scanners; however, assured take every possible effort to utilize them in full capacity. 7 A C15 craft purchased for 7 The CAO/AO stated that Rs.6,932,567/- in 1996 re- they had failed to sell this tained without being used. craft and were waiting for the permission for removal as there was no other alter- native. The Committee instructed Contd.. to expedite the removal of the craft.

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Sri Lanka Customs 8 Most of the Custom Offic- 8 It was informed that the ers had not submitted the situation is improving now Declaration of Assets and and it is proved by the sta- Liabilities in terms of the tistics available. Declaration of Assets and The Committee directed to Liabilities Act. implement good govern- ance in the Department.

9 Payment of overtime had 9 The CAO/AO requested been done without adhering more time to reply and the to the provisions approved Committee directed to re- by the Government and the port on the same vary early Committee enquired the to the Committee. reasons for paying overtime for an officer while being abroad. 1 There was a loss of Value 1 The CAO/AO explained 0 Added Tax amounting 0 that since the Cess was Rs.44,868,264/- due to in- collected by the Sugar Re- correct computation of search Institute during that VAT on imported sugar period, it was missed from from 2002 to 2006. the Custom Declaration and also from the calcula- tion of VAT. He further stated that it was rectified now and also taken action to collect the dues from those parties with the assistance of the Department of Inland Rev- enue. 1 It was queried regarding the 1 The CAO/AO stated that it 1 six companies which did 1 is connected with the VAT not execute exports up to fraud and also caused due the approved amount of to the procedure followed Rs.570.3 million under 327 in the past. custom entries. 1 The Committee observed a 1 It was explained that they 2 loss of Rs.3,259,627/- in- 2 could recover the amount curred on account of 15 in short if the order of the seater motor vehicles im- Supreme Court would be in ported being declared in 16 favour of the Department Contd.. seater category. of Customs.

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Sri Lanka Customs 13 03 illegally imported vehi- 13 According to the CAO/ cles and 02 other vehicles AO, the decision was were released to the own- taken by the staff officer ers on a mere payment of as per the power vested in custom duty instead of him by the Section 163 of confiscating them. the Customs Ordinance.

14 It was questioned about 14 The CAO/AO stated that the alterations made to the dual purpose vehicles are Motor Vehicles imported converted to carry passen- under the category of re- gers after clearing them duced custom duty and under reduced custom used for other purposes. duty but now the system had been modified and all the details are sent to the Department of Motor Traffic to be concentrated on at the time of registra- tion of the vehicles. 15 A large quantity of confis- 15 It was informed that the cated wooden goods with investigations are carried an archeological value had out by the CID. been misplaced at the Customs. The Committee directed to expedite the follow up procedure.

16 The Committee queried 16 The investigations are regarding a loss of US carried out by the CID Dollars equivalent to and also the Department Rs.8,011,529/- from a had developed a system parcel seized at the to transfer the seized par- Katunayake Airport in cels to the special unit at 2004 while being in the the head office with a custody of the custom view of avoiding such officers. malpractices. 17 There were instances of 17 The CAO/AO stated that misplacing of files and a special committee had failure to locate goods been appointed to look retained or confiscated by into the matter and to the officers of Baggage propose a suitable system. Division.

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55. Department of In- 1 The Committee questioned 1 When it was informed that land Revenue what action had been taken two officers had already by the Department against been interdicted and the (M/Finance & Plan- the officers who were re- Dept. was waiting for the ning) sponsible for the huge VAT court order to proceed with fraud revealed in 2004. the disciplinary actions, the 07 July 2011 Committee stressed the fact that it was very clearly stat- ed in the Establishments Code that the Dept. can conduct a disciplinary in- quiry without a court order.

2 It was discussed on the re- 2 The CAO/AO stated that in sponse of the Department to response to the Interim Re- the Interim Repot of the pot of the COPA, the Dept COPA on the Management had taken some corrective of the Government Tax measures and 5 committees Revenue. had been appointed in 2008 to investigate into this mat- ter. Upon the request of the COPA, five draft reports of the said committees were tabled.

The Committee expressed its extreme displeasure since the Dept. had not even charge sheeted the officers responsible for the fraud and having consid- ered it as a serious lapse, directed the CAO/AO to hold an examination in this regard and appear before the Committee on 09 Au- gust 2011. Re –examination 1 The Committee enquired the 1 When it was informed that CAO/AO as to what action a three man committee had Department of Inland they had taken against the been appointed in order to Revenue officers connected with the identify the responsible VAT fraud, as directed in persons and awaiting the 09 August 2011 the previous meeting held findings of that committee, on 07 July 2011. the Committee stated that Contd..

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Department of Inland there is no need of ap- Revenue pointing another commit- tee as the Presidential Commission appointed has already issued its final report having identified the officers connected with the VAT fraud.

The CAO/AO was di- rected to take immediate action to interdict the re- spective officers as named by the said Commission and also to hand over the case if this amounts to a criminal offence to the Police or Fraud Bureau.

The Committee also stressed the fact that no investigation can be done independently while keep- ing these personnel in ser- vice.

The CAO/AO was further directed to report to the Committee within two weeks time having taken action accordingly.

56. Ministry of 1 The Ministry had not taken 1 It was informed that still Indigenous Medicine action to fill the vacancies there were vacancies for in the approved cadre. 03 SLAS officers and 264 09 August 2011 vacancies in the medical service. Further, the Min- istry had got the approval from the PSC to recruit 135 Doctors and approval had been sought to recruit Contd.. the rest. It was directed to take measures to recruit the approved cadre immedi- ately.

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Ministry of Indigenous At this point, the Committee Medicine directed the Treasury to make a review on the va- cancies prevailing in other Departments too, as this could lead towards the un- derutilization of funds.

2 It was reported that a Com- 2 The Board of survey had puter and a Television had been commenced and com- been misplaced. plaints had also been lodged in the Police.

The Committee expressed its dissatisfaction on the matter and did not accept the explanation given by the CAO. 3 Performance of the Osu 3 The Committee pointed out Govi Gammana Project that the progress in this commenced in the year regard could not be ob- 2005 spending a sum of served according to the Rs.46,952,728/- was dis- available records. cussed. This had run from the incep- tion at loss, and Cabinet approval had been obtained to restructure this as a pub- lic private partnership. 4 (i) The Committee observed 4 (i) It was informed that the that the Government had project had been success- contributed fully continuing and 42 Rs.1,200,000/- for construc- centers had been opened up tion of Hela Veda Medura to now. for selected Medical practi- The Committee drew the tioners and enquired about attention on acquiring the the current situation and land where the Veda Me- performance of the project. dura had been constructed and stated that acquiring was not fair from the Medi- cal practitioners and di- Contd.. rected to do the necessary amendments to revise the relevant Cabinet paper.

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Ministry of Indigenous 4 (ii) It was enquired that 4 (ii) Three Ayurvedic medi- Medicine what action had been taken cal Faculties had been es- to improve traditional tablished in Colombo, Jaff- Ayurvedic systems of na and Kelaniya Universi- Ayurveda, Siddha and ties. Unani. The Committee empha- sized the requirement of proper plan to enhance the standards of the Auyrvedic system and directed to con- sult Indian professionals for same and submit a re- port to the Committee.

57. Ministry of 1 Action had not been taken 1 It was informed that the Parliamentary Affairs to recover a sum of money due from 31 Mem- Rs.658,724/- due from 31 bers of Parliament who 11 August 2011 Members of Parliament in were not elected to the respect of office equipment 13th Parliament could not supplied to them. be recovered. The Minis- try has decided to inform the Chief Secretaries with regard to the dues from the ex-members who had been elected to the Provincial Councils.

The Committee directed to write off the balances due from the deceased mem- bers, after getting the ap- proval of the Treasury and to inform the Committee on Public Accounts about those who did not respond. 2 Action had not been taken 2 Two Ex-Members were to recover a sum of died and the IGP had been Rs.1,808,060/- from 04 Ex- informed to cease the other Members of Parliament not two vehicles. elected to the 13th parlia- ment who had not complet- ed the payment of vehicle loans obtained under Indian Relief loan basis.

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58. Ministry of Land 1 The Committee enquired 1 Land Kachcheries are being & Land Development whether the Land Ka- held by the relevant Divi- chcheries are being held at sional Secretary with the 23 August 2011 present and also about the concurrence of the Land policy and procedure of land Commissioner General and alienation. Provincial Land Commis- sion, following the guide- lines of the Land Develop- ment Ordinance. The Committee emphasized the requirement of a Pro- gress Report on the availa- bility of distributable lands, landless registration, land alienation, etc. and directed to send the report prepared by the Ministry within two weeks.

2 There were considerable 2 The CAO stated that they number of vacancies as, 18 had discussed the matter in the Ministry and 29 in the with the Ministry of Public Department of Land Use & Administration several Policy Planning. times but were not success- ful. Directed to take immediate action to fill the vacancies. 3 The Annual Action Plan for 2010 had been submitted after six months which is required to be prepared be- fore commencing of the year concerned. 4 The post of Internal Auditor 4 The CAO informed that had remained vacant since they had brought the matter December 2010. to the notice of the Treas- ury. The Committee, considering the existence of similar situ- ation in many government institutions, directed the Treasury officials to consid- Contd.. er this matter and take ac- tion to rectify it within one month.

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Ministry of Land & 5 There were considerable 5 It was explained that part Land Development amount of savings against of this amount is consisted the capital expenditure as of the money allocated for Rs.466.8 million in 2008, compensation which could Rs.324.8 Million in 2009 not be paid to tsunami vic- and Rs.70 million in 2010. tims in the Colombo Dis- trict due to shortcomings in the procedure to be fol- lowed. The CAO was directed to send a detailed report to the Committee in this re- gard 6 It was pointed out the diffi- 6 The CAO stated that action culties faced by the LDO had been taken to convert license holders with regard those licenses to to bank loans. “Bimsaviya” certificates which are accepted by banks. The Committee empha- sized the need of convert- ing the said license to a recognized deed that can be accepted by banks. 7 The Colonies which were 7 The CAO replied that they maintained and developed would discuss the matter by the Land Commission- with the Financial Com- er‟s Department in the past, mission to increase the has now been neglected. financial assistance to im- prove the condition of the Colonies with the assis- tance of the relevant au- thorities of Provincial Councils. 8 The Committee considered 8 Stating that this issue pre- the issue of outstanding vails in almost all the gov- loan balances of public ernment institutions, the officers advance account. Committee suggested to convene a meeting with the Deputy Secretary to the Treasury to discuss the matter and also empha- sized the need of a com- Contd.. mon mechanism to simpli- fy the recovery of loan balances. 104 Report from the Committee on Public Accounts of the Parliament of the Democratic Socialist Republic of Sri Lanka

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Ministry of Land & 9 Two jeeps belonged to the 9 The Ministry had made Land Development Ministry had remained arrangements to auction idling for more than 9 years. these two jeeps donated by the UNDP and had been unable to do so as the Treasury had not given permission due to nonpay- ment of relevant taxes. The Committee pointed out that if the Ministry had giv- en the clear clarification to the Auditor General, these types of queries would not have come before the CO- PA and also emphasized that this was a result of the poor administration of the Ministry.

1 It was observed that, under 1 The CAO stated that the 0 the “Bimsaviya” pro- 0 “Bimsaviya” programme gramme, although it had was functioned under the anticipated issuing 250,000 Land Commissioner Gen- title certificates from 2008 eral and the action had been to 2010 by spending taken to collect the data Rs.1082 Million, the num- through the Divisional Sec- ber of title certificates is- retaries and Grama Nila- sued to individuals was daries under four categories 23,194 and a sum of Rs.92 and the list of names of Million had been paid as land owners of settled lands incentives for surveying. would be Gazetted under The committee enquired as the Land Development Act to why the achievement was No.23 of 1997 and the rest less than 10% and why the with problems were next steps have not been planned to be settled at vil- taken since the surveying lage Mediation Boards or had been completed. go to courts if necessary. Further stated that the ac- tion had been taken to amend the Land develop- ment Act and a Cabinet Paper had also been pre- sented to solve the Land Contd.. queries in the North and the East. The achievement of the programme was less than 10%.

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Ministry of Land & 11 There were problems con- 11 Directed to prepare a Cab- Land Development nected with the present inet paper to appoint a „nominated successor‟ pol- Commission with experts icy practiced in distributing to spell out the new policy lands to landless people on land distribution.

12 Out of the 100 Survey As- 12 The Committee empha- sistants recruited to the sized the procedure fol- Northern province, 59 and lowed by the Ministry was 20 applicants had been incorrect and a report was selected from the Matale called regarding the re- and Polonnaruwa Districts cruitments of the Survey respectively whereas only Assistants. 04 persons had been select- ed from the Northern Prov- ince. 59. Department of 1 There were considerable 1 According to the CAO/AO Import & Export Con- differences between the this has been due to tsuna- trol Original Estimated Reve- mi situation in 2004 and nue and the Actual Reve- the fluctuation of imprest (M/Finance & nue during the period of and export tax rate. Planning) 2005 - 2010 and the Re- vised Estimation was also 24 August 2011 not close to the Actual Revenue. 2 It was inquired about the 2 The CAO/AO informed importing of vehicles in the that the permission for form of scraps in order to importing face cuts and escape from taxes. back cuts are banned at the moment. The Committee directed to look into this matter seri- ously as this makes a grave impact on the gov- ernment tax revenue. 3 When queried regarding 3 The committee stressed the importing of drum that there should be a clear trucks, it was informed that policy in this purpose. drum trucks which are less than five years old from manufactured date are only allowed by the tariff but Contd.. these limits are changed

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Department of when requests are made Import & Export Con- from special projects etc. trol

5 The Committee pointed out 5 The CAO/AO agreed to the importance of the train- send a list of employees ing of the staff and also the who has worked in the transferring them after five department for more than years of service. five years. 60. Ministry of 1 Required number of Audit 1 The CAO assured to the Petroleum Industries & Management Committee Committee that meetings meetings had not been held would be held regularly 25 August 2011 in the years 2009 & 2010. from the following month. 2 Action had not been taken The CAO stated that this to recover the loan balanc- outstanding amount is due es amounting to from two employees. One Rs.197,815/- of them had vacated his post and the other was interdicted on murder case. As such, there is no possibility of recovering this amount and action would be taken to write off. 3 The Ministry had made the 3 The CAO informed that Ceylon Petroleum Corpo- this had happened when ration to bear expenses on the Ministry was formed behalf of the Ministry such and now it is not contin- as building repairs, vehicle ued. repairs and staff salaries and it had been using the vehicles belonging to the CPC too. 4 The Committee enquired 4 It was stated that the per- the reasons for not prepar- formance report had al- ing the performance reports ready been prepared for for the years 2006, 2008 & the year 2010. 2009. 5 Investigations had not been 5 The report had already taken place regarding the been prepared as per the 03 vehicle accidents. FR regarding this matter. A detailed report in this Contd.. regard was called for im- mediately.

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Ministry of Petroleum 6 Action had not been taken 6 The CAO stated that these Industries against a ministerial officer payments relate to former who had drawn a sum of Additional Secretary of Rs.503,447/- from the the Ministry of Petroleum Ministry and Rs.317,800/- Industries who had from the Co-operation for worked as the Chairman the same tenure, as salaries and the Managing Director and allowances. of the Ceylon Petroleum Co-operation. The Committee observed this as a very serious vio- lation of the provisions of Establishment Code and directed to take discipli- nary action against this officer and also to send a detailed report to the Com- mittee.

61. Office of the 1 The Committee enquired 1 The CAO explained the Parliamentary the reason for not recover- difficulties faced, without Commissioner for ing the outstanding ad- the services of an Ac- Administration vance balances aggregated countant and also stated Rs.108,408/- as at 31 De- that some of the officers 07 September 2011 cember 2008. whose balances are out- standing were not in his office at present. The Committee directed to take necessary action to recover outstanding bal- ances and report back to the Committee within 03 months. 2 The office equipment val- 2 When it was informed that ued at Rs.151,900/- this lapse had been occurred purchased in the year 2009 due to non availability of an had not been brought to Accountant, the Committee directed the CAO to make a inventory book in terms of request to the Treasury to Financial Regulation 454 obtain an Accountant from (1). the Accountants Service.

The Committee also directed to take necessary action to record the office equipment Contd.. in the inventory books imme- diately.

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There was a delay in tabling 3 The CAO assured the Com- of Annual Performance Re- mittee that the reports ports for the years 2004, would be tabled in Parlia- 2009 and 2010 in Parlia- ment without delay. ment.

62. Ministry of 1 Required number of meet- 1 It was stated that 02 Audit Co-operatives & ings of the Audit & Man- & Management Committee Internal Trade agement Committee had not meetings had been held in been held from 2005 to 2011 including a consoli- 20 September 2011 2011. dated meeting.

2 Action had not been taken 2 The CAO was directed to to prepare the Internal Audit submit Internal Audit Re- Report as per the F.R.134 ports to the Auditor General (3). as required.

3 (i) Full payment had been 3 (i)The CAO stated that the made for the rice stock of value of metric tons in short 7000 metric tons, even (US$ 48,159), had been though there had been a received by the Ministry of shortage of 107.83 metric Foreign Affairs. tons imported from Myan- mar in 2008. Directed to settle the matter very early and report back to the Committee and to the Auditor General within one month.

(ii) A stock of imported (ii) It was explained that rice, valued at Rs.4,660,590/ some rice bags were dam- - had been damaged. aged due to heavy rains prevailed in April 2008, but they had sold damaged stock for animal food. Con- sumable stock was sold at reduced prices prevailed in the market and the total loss caused was Rs.58 million. Contd..

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Ministry of 4 (i) The Committee ob- 4 (i) The CAO replied that Co-operatives & served that a sum of this amount was due from Internal Trade Rs.6,897,766/- to be recov- the Co-operative Societies ered, as the stock of rice and cheques valued at imported from Myanmar Rs.2 million issued by the had been issued on credit Co-operative Societies had basis to the local institu- been returned. The Minis- tions. try had taken legal action in this regard.

The Secretary to the Com- mittee was directed to summon the Secretary of the Ministry of Co- operatives & Internal Trade, the Chief Account- ant of the Ministry, Samurdhi Commissioner General, and the Food Commissioner on a future date to get clarifications about the matters connect- ed with the Ministry of Co-operatives & Internal Trade.

(ii) A sum of Rs.480 mil- lion obtained temporari- (ii) The Committee di- ly from the Revolving rected to inform the Fund of the General Treasury to write-off Treasury for the import the loss amounted to of rice but action had Rs.15 million. not been taken to settle the balance of Rs.72.6 million.

5 Action had not been taken 5 Rs.44.5 million had al- to recover the overpayment ready been recovered from of Rs.49.2 million spent, the Ministry of Foreign when importing 3000 met- Affairs and the Myanmar ric tons of white sugar Embassy had promised to Contd.. from Myanmar. pay the balance - Rs.4.6 million in due course.

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Ministry of 6 The Committee observed 6 The CAO explained that the Co-operatives & that action had not been Ministry of Foreign Affairs Internal Trade taken regarding the loss imported the stock on the incurred due to importation tendency of increasing pric- of 1500 metric tons of es of rice during the Presi- white rice from Vietnam in dential Election in 2009 but December 2009. the stock could not be sold at the purchased price. Ac- cording to the CAO, the Treasury had come to a compromise that the loss incurred due to this transac- tion would be borne by the Treasury. The Committee directed to send detailed reports about this transaction to the Min- istry of Foreign Affairs and the Treasury and submit the copies to the Committee and the Auditor General.

7 The Committee observed 7 The committee directed to that the “Thuru Sevana” send a detailed report on Marketing Project had been this matter to the Commit- constructed in 2003 and tee and the Auditor General demolished it, later on within 2 weeks. Wariyapola Special Eco- nomic Centre had been constructed in 2007 at Wariyapola forest reserve neglecting the feasibility study which stated the una- vailability of ground water.

In addition, even though Rs.12,662,780/- was recov- erable from the contractor (CECB), a sum of Rs.3,042,355/- had been paid in December 2010 as the settlement of the final bill without recovering the Contd.. said amount.

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Ministry of 8 Action had not been taken 8 Since the breakdown given Co-operatives & to achieve any of the objec- by the CAO was not com- Internal Trade tives expected from the patible with the records of establishment of the the Auditor General, the “Special Economic Centres Committee directed to do Maintenance Fund” valued the reconciliation and re- at Rs.90 million as the Min- port back. istry had by spent some money to purchase sugar from Myanmar without the approval of the Treasury.

9 The amount due, had not 9 The CAO was directed to been recovered from the report to the Committee legal consultant of the Min- that the money had been istry, who was appointed recovered. for 02 years with effect from 02 July 2007, but had not been reported for duty since 24 March 2009, due to accepting an appoint- ment in another institution.

1 The accounts of the Trust 1 The Committee directed to 0 of the Dambulla Economic 0 report to the Committee in Centre had not been pre- this regard within one sented for the audit up to month. date.

1 There were considerable 1 The CAO stated that they 1 number of vacancies in the 1 had already informed the Ministry and questioned as Ministry of Public Admin- to why the vacancies had istration & Home Affairs not been filled. in this regard. Contd..

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Ministry of Co- 1 The Committee enquired 12 The CAO stated that they operatives & Internal 2 whether the attention had would look into the mat- Trade been paid to the request ter. made to establish an Eco- nomic Centre at Goda- kawela.

63. Ministry of Water 1 Action had not been taken 1 The Committee was in- Supply & Drainage to fill the vacancies of the formed that the Ministry approved cadre in the Min- was functioning with the 21 September 2011 istry. existing staff and the Min- istry of Public Administra- Ministry of Public Ad- tion had already been in- ministration had been in- formed in this regard. formed of this situation.

2 There were notable dis- 2 The CAO stated that they crepancies of the infor- had made a mistake when mation provided in the including annual budget- Performance Report of ary allocations and ex- 2010 in respect of 3 Pro- penditure in the Perfor- jects: Greater Kandy Water mance Report. Supply Project, Greater Colombo Water Rehabili- Directed to be more vigi- tation Project and Labuga- lant when providing infor- ma Kalatuwawa Project of mation to Parliament. which Financial Progress had been nearly 100% while Physical Progress had been much lower.

3 Action had not been taken 3 The revenue generated by to avoid the delay in the the NW & DB was not Contd.. repayment of installments sufficient to pay the entire and interests of the foreign amount of loans because loans obtained by the NW the Board provides water & DB come under the at subsidized rates and free Ministry for the years of charge for several par- 2008, 2009 and ties and also the produc- 2010.Action had not been tion and staff costs are taken to avoid the delay very high.

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Ministry of Water in the repayment of install- Further, the annual com- Supply & Drainage ments and interests of the mitment of repayment of foreign loans obtained by loans was Rs.2.billion and the NW & DB come under the NW & DB had been the Ministry for the years directed by the Ministry to 2008, 2009 and 2010. pay at least Rs.200 million monthly repayments, since the arrears of loans at pre- sent is Rs.5 billion. It was emphasized that the Ministry and the NW & DB should have a repay- ment plan as the loan bal- ance had been increasing annually. (Arrears of loan balances at present is Rs.05 billion)

4 The Committee stated that 4 The CAO explained that action should be taken to non revenue water in Co- reduce non revenue water, lombo metropolitan area as it was the main contrib- had been around 53% at utory factor for the loss of present and considerable the NW & DB. But, it had percentages had been in not been stated in the Ac- regional areas too. tion Plan and the follow up Main four cases for this action carried out in this situation had been regard, had not been indi- (i). Water leakages from cated in the Performance old pipes Reports. (ii). Free water supply for certain categories (iii). Illegal connections (iv). Administrative short- comings

The Committee observed Directed to launch an that people in the specific awareness programme to Contd.. areas were unable to access encourage the people. the “Randiya” programme. The CAO stated that they had already started a mo- bile service to motivate people to take their own connections

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Ministry of Water 5 Rs.23 million allocated for 5 Since it was against the Supply & Drainage the Dry Zone Project had FRR and the project agree- been utilized in the Third ment, the Committee di- Water Supply and Sanitation rected to regularize it. Project without getting the approval of the Treasury.

6 Rs.97.7 million had been 6 The CAO stated that the received from the Treasury Treasury had refused to during the year 2009 in re- provide money to continue spect of granting rebate of the subsidy in the year Rs.20/- for the consumers 2010. who use less than 15 units of water per month but the Directed to get this matter same subsidy is being con- regularized having discus- tinued without the provisions sions with the Treasury. of the Treasury and as a re- sult, a loss amounting to Rs.138,937,699/- was in- curred.

7 The Committee seriously 7 The Committee directed to considered a sum of report the matter to the Hon. Rs.5,789,514/- which had Minister of Water supply been paid as interests due to and Drainage, as well as to delay in payment of compen- the External Resources De- sation for lands acquired, partment and also a compre- during the year 2010 and hensive report was called also payment of demurrage regarding the Lunawa pro- amounting to ject and decided to discuss Rs.483,235,236/- which was the matter at the earliest equivalent to 7% of the total after receiving the report. foreign loan amount made due to delay in handing over Contd.. the lands on due date, to store contractor‟s equipment.

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Ministry of Water 8 106 sub projects had been 8 Even though they could not Supply & Drainage abandoned after making an implement the water supply expenditure of project, the Ministry had Rs.33,950,187/-. done several activities on sanitation, conducted health education programmes and organized Community Based Organizations.

64. Ministry of 1 The Committee observed 1 The CAO stated that they Foreign Employment the delay in the tabling of had submitted the report for Promotion & Welfare Annual Performance Re- the year 2008. ports for the years 2006 to 2009. 22 September 2011 2 02 motor vehicles valued at 2 The CAO informed that one Rs.11,800,000/- had been vehicle had been returned given to the Ministry of and the other would also be Policy Development and returned shortly. These Implementation. vehicles had been used by the former Minister. 3 The Ministry had not regu- 3 It was stated that these ex- larized the matter of exceed- cess telephones and ex- ing the limits provided for penditure incurred for same telephones prescribed in the was for the services of the Circular No. CSA/P1/40 of National Media Centre 04 January 2006 of HE the when the former Minister President. was in charge of that and request had been made to the Presidential Secretariat for approval. 4 04 projects valued at 4 The CAO explained that the Rs.118,975,000/- in 2009 main projects were to estab- and another 04 projects val- lish a Foreign Language ued at Rs.150,000,000/- had Training Center in Kandy not been commenced in and Pre Departure Orienta- 2008. tion Center in Katunayake and the problem was the inability to find a suitable land for them. The concern of the Com- mittee was that, these funds Contd.. had gone back to the Treas- ury without being used

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Ministry of Foreign 5 A project initiated to train 5 The CAO stated that it Employment labourers and find job op- was not successful be- Promotion & Welfare portunities in Canada, Italy cause of the depression and Libya had been aban- prevailing during that peri- doned in 2008, after paying od and however subse- an amount of quently managed to send Rs.17,000,000/- as an 800 workers to Libya in Agreement fee to a Mi- 2010. grant Organization.

6 The Committee pointed out 6 Italy government had the importance of avoiding granted quota for 3500 illegal migration to Italy. persons in 2010 but it was fully acquired by the rela- tions of the persons who were working there and also by the illegal migrants already in Italy. The ministry has arranged to sign a MOU with Italian Government to overcome the problems with illegal migration. 7 It was questioned whether 7 It was informed that 500 the returning of workers workers were brought and from Libya had been final- funds were borne by the ized and how it was funded Foreign Employment Bu- reau. The Committee directed to recover the money spent, by writing to the IOM (International Organiza- tion for Migration) as this organization is involving in similar activities and granting funds. 8 Vacancies available for 8 The CAO explained that nurses in European Coun- the Europe require degree tries were taken into con- qualified Nurses and only sideration. around 100 nurses had passed out from the Open Contd.. University and the Univer- sity of Sri Jayewardenepu- ra.

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Ministry of Foreign The Committee directed to Employment find ways and means to Promotion & Welfare promote this sector by ap- pointing an inter ministeri- al committee of the Minis- try of Health, Ministry of Higher Education and the Ministry of Foreign Em- ployment Promotion and Welfare.

65. Department of 1 Even though the Audit and 1 The Audit and Manage- National Planning Management committees ment Committee had been should meet at least once in held by the Ministry of (M/Finance and Plan- a quarter, only two meet- Finance and Planning in- ning) ings had been held in each cluding all Departments of the years 2009 and 2010. together. 06 October 2011 The Committee directed to hold these committees sep- arately in each and every Department on quarterly basis. 2 The Performance Report for 2 The CAO/AO stated that the year 2010 had not been the Performance Report tabled in Parliament violat- had already been prepared ing the provisions of the and would be tabled in Public Finance circular Parliament soon. No.PF/402 of 12 September 2002. 3 There were savings ranging 3 It was explained that the from 81% to 100%, under relevant project agreement certain Capital Objects, was signed in November from 2007 to 2010. 2007 but the documents were received on 13.12.2007. Owing to that delay, the reimbursement could not be done from the JAICA. Further, Rs.100 million allocated to the Department for some National projects had been freezed since those projects were imple- Contd.. mented through Provincial Councils.

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Department of The committee directed to National Planning submit written explanations to the Committee and the Auditor General.

4 Action had not been taken to 4 The amount of outstanding recover the outstanding loan loan balances had been re- balances amounting to duced gradually and the Rs.504,458/- including loan Department had to face dif- balances older than 5 years ficulties with recovering which were amounting to loans from the officers who Rs.279,288/-. were retired and vacated their posts but the recover- ing process is being contin- ued successfully. 5 Printing of the Sinhala and 5 The CAO/AO stated that the Tamil versions of the book English print had been “Randora” had been award- printed according to the ed without calling quotations tender procedures consider- and sum of Rs.1,143,618/- ing the quality. The Sinhala had been paid to the same and Tamil versions had institution exceeding the been given to the same agreed amount of printer with the approval of Rs.3,097,250/-. the Tender committee of the Ministry. The Committee directed to follow standard tender pro- cedures in the future. 6 The book, “Government 6 Directed to send a full and investment plan 2008 – comprehensive report to the 2011” had been printed at a COPA with copy to the Au- cost of Rs.1,110,450/- and ditor General on printing evidence of the receipt of the and distribution of the said books by the department or book and also a copy of the particulars of distribution “Randora” with the procure- of books were not furnished ment committee reports. to Audit. 7 The Committee drew the atten- 7 The CAO/AO stated that the tion on the vacancies as at De- Department had planned to cember 2010 represented 41% restructure the cadre to meet of the approved cadre and en- the new challenges of the quired as to why the action had country. not been taken to fill the Vacan- Contd.. cies in the Department.

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Department of The Committee empha- National Planning sized the professionalism of the Department and pointed out the importance of recruiting the best quali- fied personnel.

8 The Committee enquired 8 The CAO/AO informed the whether the National Coun- Committee that the NCED cil for Economic Develop- is functioning successfully ment was functioning at present. properly. Directed to be concerned about the job creation of the private sector when preparing the plans and also to consider the invest- ment programmes to attract investors to the country. 66. Ministry of Bud- 1 A Technical Officer, who 1 The Committee was in- dhasasana & did not possess qualifica- formed that the service of Religious Affairs tions, had been appointed the said officer had been and assigned duties of su- obtained initially free of 18 October 2011 pervisor of vehicles. charge but action has al- It was also reported that due ready been taken to regu- to recommendations of this larize the matter. officer a great deal of losses to the Government.

2 There was a delay in 2 The CAO assured to pre- presentation of accounts of sent the accounts within Buddhasasana Fund in past stipulated time period in six years. future. The Committee directed to make necessary arrange- ments to forward them in time. 3 The Ministry had not con- 3 The CAO stated that the ducted the board of survey board of survey was being for 2010. processed and it was so delayed due to the shifting Contd.. of the head office to a new location.

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Ministry of Bud- 4 The Committee queried 4 The Ministry had requested dhasasana & Religious about malfunctioning of the Treasury for recruiting Affairs Internal Audit and also not a suitable officer for inter- appointing an officer for nal audit for several times same on permanent basis. and assured that it could be accomplished within few weeks.

5 The Ministry had not uti- 5 The Committee was of the lized the funds allocated for view that this was clearly the years 2005 to 2009 due to unrealistic budget- properly. It was reported ing and directed to be more that during this period 68 vigilant on this situation in objects had saved more the future. than 50% of the total provi- sion while 112 objects had saved 100% of the total provision. 6 The Recurrent Expenditure 6 The CAO explained that, of the Circuit Bungalow of since the condition of the the Ministry situated in building was not up to the Anuradhapura was higher standard, action had been than its total income during taken to improve it. past 20 months. 7 The Ministry had not recov- 7 A case had been filed ered the loss caused by a against the driver but he is motor vehicle accident in not attached to the ministry 2004, from a driver who at present. was responsible for the loss. The Committee directed to look into this matter fur- ther. 8 There were several short- 8 The CAO stated that action comings in printing of was being taken to inform books for Punya Grama the Ministry of Public Ad- Programme during the peri- ministration to conduct an od of 2008-2010 at the cost inquiry on this. of Rs.3,578,500/-. This had been due to poor estimation on required number of books and also deviation of the accepted Contd.. procurement procedure in this affair.

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Ministry of Bud- 9 Even though only 15 offic- 9 This has happened as the dhasasana & Religious ers had participated in an vehicles in possession of Affairs awareness programme at the Ministry had been very Hambantota, 2 vehicles old, and the CAO assured from the pool and 2 official that such things would not vehicles had been used happen in the future. spending Rs.40,745/- on fuel.

1 The Committee enquired as 1 The CAO assured to use 0 to why Rs.10 million was 0 maximum in the future. under utilized out of 28 mil- lion granted to execute the programme “Samanera Ka- pakaru Dayaka Kramaya” during 2007-2010.

67. Department of Fis- 1 The Committee observed 1 It was seriously considered cal Policy that the Secretary of the and the Committee‟s view Ministry had not been pre- was that according to the (M/ Finance & Plan- sent for the day‟s meeting Standing Orders, the Secre- ning) without informing his ina- tary to the respective Minis- bility in advance to the try should come before the 19 October 2011 Committee. Committee on Public Ac- counts as the Chief Ac- counting Officer, and if there was any difficulty for him to attend, action should have been taken to send a suitable representative, af- ter getting consent of the Committee. 2 Rs.2,661,168,832/- had been 2 This expenditure was to spent as Capital Expenditure purchase required furniture in the year 2006. and other equipment due to the department being divid- ed into two. A detailed report was called on this matter. 3 Revenue of Rs.565 million 3 The Committee stated that had not been included in the due to this kind of unsettle- Contd.. Revenue Account in the ments, government revenue year 2005. would be erroneously

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Department of Fiscal calculated by millions and Policy the CAO/AO was directed to report back after correct- ing it.

68. Department of 1 The Annual Action Plan for 1 Even though the Depart- Commerce the year 2011 had not been ment had prepared it, they furnished to the Auditor could not send a copy to (M/Industry and Com- General up to now. the Auditor General as merce) there were some correc- tions to be done and the CAO/AO apologized for the delay. 2 Only 04 meetings of the 2 It was stated that the Audit Audit and Management and Management Commit- Committee had been held tee normally meets at the during 05 years – from Ministry but during the 2005 to 2010, which was past few years, it could not very much lower than the be held as usual since the requirement. Department was under different ministries but assured to hold next meet- ings as prescribed, in the future. The Committee directed the CAO/AO to hold the meetings regularly. 3 The percentage of the utili- 3 The Committee was in- zation of provisions of the formed that the funds re- year 2009 is only 10.66%. ceived in 2009 from the Treasury were only 1 billion out of the allocated 8 billion from the Budget.

The Committee expressed its dissatisfaction regarding the limitation of amounts proposed to pay the Ex- porters under Exports De- velopment Reward Scheme as it is very unfair from the exporters‟ point of view. 4 The directions of the previ- 4 The CAO/AO under took ous meeting of the Commit- to report to the Committee Contd.. tee on Public Accounts with copy to the Auditor were not carried out. General within two weeks. 123 Parliamentary Series No. 240

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Department of 5 The Debtors and Creditors 5 The CAO/AO assured to Commerce Control Account and the list maintain relevant records of Debtors and Creditors properly in future. had not been maintained in terms of the National Budg- et Circular No. 118.

6 The Department had not 6 Directed to send that un- sent a monthly report to the dertaking in writing to the Commissioner General of Committee on Public Ac- Inland Revenue with a copy counts. to Auditor General before the 15th day of the follow- ing month whenever the department pays Value Added Tax to other parties and institutions. 7 There were deficiencies in 7 The CAO/AO informed banking of money received that, it was due to the by the Department. heavy shortage of staff but now action had been taken to rectify the situation.

The Auditor General was directed to do a system study and report back to the committee within six months to enable the Com- mittee to decide whether to re-summon the Depart- ment. 8 It was observed that large 8 The CAO/AO explained number of vacancies pre- the seriousness of the vailing in the Financial shortage of staff in that Management Section. section.

The Committee directed the CAO to take necessary action to provide sufficient staff to the Financial Sec- tion and report back the progress of same to the Committee within 03 months.

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69. Parliament of 1 Hon. Anura Priyadharshana 1 Since the duties of the Par- Sri Lanka Yapa, expressed his person- liament are different from al view on the summoning other Government institu- 08 November 2011 of Parliament before the tions, he proposed to set up Committee on Public Ac- special guidelines to follow. counts. In view of the nature Hon. Ajith P. Perera and of the functions, it was not Hon. Hunais Farook also appropriate to summon the endorsed the proposal of Parliament before the PAC, the Hon. Anura Priyadhar- as in the manner the other shana Yapa. Government Institution are summoned. The Auditor General stated that there is no bar for the Parliament to be guided by special regulations, as al- ready, the other corpora- tions act on special guide- lines which are only appli- cable to them.

2 The Internal Audit Section 2 When it was revealed that had not furnished Internal the Internal Audit Section is Audit Reports to the Auditor functioning without an Ac- General. countant, the Committee recommended the need of appointing an Accountant for the Internal Audit Sec- tion. 3 Annual Action Plans had 3 The CAO informed that it not been furnished to the is impossible to have an Auditor General up to date. action plan with regard to the legislative work but an action plan on financial and administrative matter had been prepared for 2010 and 2011, the Committee en- dorsed the statement of the CAO in view of the nature Contd.. of the functions of Parlia- ment.

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Parliament of 4 (a) The Human Resources 4 (a) The CAO stated that the Sri Lanka Development Plan had not Hon Speaker had appointed been implemented up to a Select Committee to look date even though the Parlia- into the functions of the ment Modernization Project above project and the report had paid a sum of of the Committee was ta- Rs.1,276,200/- to a Consult- bled on 15/11/2008 before ant in the years 2004 and Parliament. The CAO add- 2005 for the preparation of ed that the financial trans- same. actions were done by UNDP itself and the Parlia- ment had not involved in any financial transaction.

4 (b) Implementation of the 4 (b) The CAO informed that Library Development Plan implementation of the had been delayed, though a above plan has already been sum of Rs.600, 218/- had done and as an innovation been paid to a Consultant introduced by this plan, a for the preparation of same brief note is given to every in the years 2004 and 2005. Member of Parliament Further, four officers at- with every Act. tached to the Parliament had been trained in the year 2008 in Library Science in Australia at a cost of Rs.1,800,000/-. 4 (c) The Committee queried 4 (c) The CAO stated that the regarding the non comple- distribution was already tion of distributing of completed and the remain- 10,000 information bro- ing was a very little amount chures printed in 2006 at a and action had been taken cost of Rs.1,100,000/- for a to distribute same among Public Awareness Pro- school children. gramme even by the end of 2007. The Committee proposed to make arrangements to pro- vide an information leaflet to every person who visits the Gallery of the Parlia- ment as a souvenir. Contd..

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Parliament of 4 (d) It was questioned with 4 (d) The CAO explained that Sri Lanka regard to 04 shortcomings in since all the transactions the implementation of the were done by the project plan for the improvement of itself, accounts were not the Information & Commu- maintained by the Parlia- nication strategies under the ment. project of Parliamentary Modernization. The Committee stressed the need of maintaining ac- counts by Parliament with regard to the foreign funded projects. The CAO was also directed to submit a report of a fresh board of survey for the year 2012 on the items received from this project and sub- mit to the Auditor General and also to maintain ac- counts of foreign funded projects in the future by the Parliament.

5 (a) The Committee enquired 5 (a) The CAO explained that as to why out of the Rs.38 the 38 Million granted in million provided by the an- 2007 was not only for nual estimates for Member- Membership contribution ship contribution of year but also for the other ex- 2007only a sum of Rs.9.2 penses. He also added that Million had been spent for however this pattern has that purpose and balance already been revised and had been used for different now the provisions are re- purposes. quested, having classified into these two components. (b) The Committee ques- (b) The Committee ex- tioned as to how the foreign pressed its dissatisfaction funds received for various over this and directed the activities of Foreign Rela- CAO to regularize this. tions and Protocol Division, The Treasury was directed had been invested in fixed to take these moneys into deposit. consideration when future grants are released. Contd.. The Auditor General was also directed to look into this.

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Parliament of 6 The Committee queried 6 The CAO was requested to Sri Lanka regarding the Electronic take the matter up with the Voting System which was Committee on Parliamen- installed having spent big tary Business. sum of money. The Committee directed the CAO to provide written explanations to the Com- mittee on the matters could not be considered appearing in the brief note of the Au- ditor General and to re- summon Parliament on a future date if necessary after considering the expla- nations.

The Secretary-General of Parliament agreed to for- ward his observations after the budget debate in Janu- ary.

128 Index of the Ministries in the Alphabetical Order

Page No.

Buddhasasana & Religious Affairs, Ministry of ...... 120

Co-operatives & Internal Trade, Ministry of ...... 109

Environment, Ministry of ...... 33

Fisheries & Aquatic Resources Development ...... 31

Foreign Employment promotion & Welfare, Ministry of ...... 116

Indigenous Medicine, Ministry of ...... 100

Land & Land Development, Ministry of ...... 103

Local Govt. & Provincial Councils, Ministry of...... 17

Mass Media & Information, Ministry of ...... 41

National Heritage & Cultural Affairs, Ministry of ...... 38

Parliamentary Affairs, Ministry of...... 102

Petroleum Industries, Ministry of ...... 107

Ports & Aviation, Ministry of ...... 25

Power & Energy, Ministry of ...... 26

Public Administration & Home Affairs, Ministry of ...... 35

Resettlement, Ministry of ...... 22

Social Services, Ministry of ...... 23

Technology & Research, Ministry of ...... 21

Traditional Industries & Small Enterprise

Development, Ministry of ...... 19

Water Supply & Drainage, Ministry of ...... 113 Index of Departments in the Alphabetical Order

Page No.

Agrarian Development, Department of ...... 27

Animal Production & Health, Department of ...... 69

Archeology, Department of ...... 49

Census & Statistics, Department of ...... 51

Coast Conservation, Department of ...... 43

Commerce, Department of ...... 123

Co-operative Development, Department of ...... 67

Debt Conciliation Board, Department of ...... 18

Department of National Planning, Department of ...... 118

Examination, Department of ...... 47

Excise, Department of ...... 80

Export Agriculture, Department of ...... 63

External Resources, Department of ...... 60

Fiscal Policy, Department of ...... 122

Fisheries & Aquatic Resources, Department of ...... 33

Food Commissioner, Department of ...... 55

Foreign Aid & Budget Monitoring, Department of...... 82

Forest, Department of...... 17

Government Analyst, Department of ...... 73

Government Information, Department of ...... 42

Import & Export Control, Department of ...... 106

Inland Revenue, Department of ...... 99

Irrigation, Department of ...... 71 Index of Departments in the Alphabetical Order

Page No.

Labour, Department of ...... 56

Land Commissioner General, Department of ...... 68

Legal Draftsman, Department of ...... 53

Meteorology, Department of ...... 82

National Archives, Department of ...... 40

National Museums, Department of ...... 65

National Zoological Gardens, Department of ...... 77

Official Languages, Department of ...... 61

Police, Department of ...... 74

Prisons, Department of ...... 65

Probation & Childcare Services, Department of ...... 30

Public Trustee, Department of ...... 45

Rubber Development, Department of ...... 59

Technical Education & Training, Department of ...... 18

Upcountry Peasantry Rehabilitation, Department of ...... 35

Valuation, Department of ...... 89 Index of other Institutions in the Alphabetical Order

Page No

Government Factory ...... 23

Office of the Leader of the House of Parliament ...... 88

Office of the Leader of the Opposition of Parliament ...... 89

Office of the Parliamentary Commissioner for Administration ...... 108

Parliament of Sri Lanka ...... 125

Registrar General's Department ...... 38

Sri Lanka Air Force ...... 91

Sri Lanka Army ...... 95

Sri Lanka Customs ...... 95

Sri Lanka Navy...... 84