2022-07-07
News Categories : Committee News
COPE chaired by Hon. (Prof) Charitha Herath recommended that an investigation be conducted through the Auditor General's Department on the cancellation of the Term Tender, which had been approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and opting to buy 100,000 MT of gas at a cost of USD 129 per metric ton from an Oman company.
This recommendation was given recently (05) when Litro Gas Lanka Ltd, Litro Gas Terminal Lanka (Private) Limited and Sri Lanka Insurance Corporation were summoned before COPE to implement the orders given by the previous Committee on Public Enterprises and to discuss the current performance.
It was disclosed that since the Term tender for the purchase of gas ended last February, tenders were invited for 2,80,000 MT of gas and three gas suppliers have submitted bids accordingly. Siam gas Company has submitted the lowest price as USD 96 per metric ton and accordingly the Cabinet has approved to award the tender.
The Litro officials disclosed that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions announced during the bidding process.
They further said that despite discussions with the concerned company in this regard, the company expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC) as per the conditions presented during the tender invitation.
Due to this delay, as a temporary solution, Siam gas Company itself has negotiated to obtain 15,000 MT of gas as emergency purchases, which is the gross amount of gas required for two weeks, but it has been informed that they can supply only 6600 MT and thus was unsuccessful.
Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, agreed to provide 100,000 MT of gas for 4 months at 25,000 MT per month.
Accordingly, after notifying the above facts to the cabinet, it was revealed that the term tender given to Siam gas Company was canceled and the cabinet approval was received for the term tender to purchase 100,000 MT of gas from the Omani company. A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd amounting to USD 90 million in total was used for this procurement, Mr. Muditha Peiris, Chairman of Litro Lanka said.
The COPE chair instructed the Auditor General's Department to conduct a formal investigation and report whether the loan amount of USD 70 million from the World Bank was effectively used, and added that although the need for gas is a necessary emergency, buying from the Omani company at a higher price instead of the lowest bidder, Siam, may set a bad precedent in the future.
The committee also focused on the inability to purchase gas with the amount of USD 160 million allocated for the purchase of gas under the Indian Credit Line. The Litro chairman said that according to the conditions of the Indian government, it is a problem to buy gas that is not produced in the country. It was also revealed that several rounds of discussions have been held regarding this. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into this immediately and report within two weeks.
Attention was also drawn to the fact that the number of currently appointed members of Litro's board of directors is only 4. It was revealed that according to the legal status, there should be 5 members. Furthermore, since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors to consist of representatives of the parent company. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this regard.
It was also discussed about holding both the positions of the company's Chairman and Chief Executive Officer by the same person. Even if the position of the company's chairman changes, the presence of a permanent chief executive officer position is essential for the good survival of the company, so the committee emphasized the importance of working towards it as soon as possible. Furthermore, Litro Chairman said that the Board of Directors has already taken a decision to deal with this situation as soon as this crisis is resolved. The committee recommended to take necessary steps and submit a report on this regard.
Litro Company's ability to obtain financial support from Sri Lanka Insurance Corporation, the parent company of the Litro Company was also looked into. The Chairman of the Sri Lanka Insurance Corporation, Mr. Vijitha Herath, said that the company was able to purchase gas in the past due to the deposit of nearly 5 billion rupees in a state bank.
Representing the Secretary of the Ministry of Finance, Mr.Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Mr. Vijitha Herath, Litro Chairman Mr. Muditha Peiris were present at this meeting whilst Mr. Thesara Jayawardane, former chairman of Litro Company, joined online.
Parliamentarians Hon. Patali Champika Ranawaka, Hon. Mahindananda Aluthgamage, Hon. Anura Dissanayaka, Hon. (Dr.) Harsha de Silva, Hon. (Dr.) Sarath Weerasekera, Hon. Jagath Pushpakumara, Hon. Indika Anuruddha, Hon. S.M Marikkar, Hon. Jayantha Samaraweera, Hon. (Dr.) Nalaka Godahewa, Hon. Premnath C. Dolawatte and Hon. Madhura Withanage were present at the meeting held.
2025-06-02
The Glocal Fair program was initiated before receiving cabinet approval, and the cabinet paper was submitted for cabinet approval during the program. The Sri Lanka Bureau of Foreign Employment has not yet received the Rs. 100 million because the Rataviru Housing Loan Program, jointly implemented with the Samurdhi Authority in 2013, resulted in the non-implementation of the Memorandum of Understanding signed. The Sri Lanka Bureau of Foreign Employment has removed itself from regulatory duties – COPE It was disclosed at the Committee on Public Enterprises (COPE) that the Sri Lanka Bureau of Foreign Employment has spent more than Rs. 1 billion on two programs that were not included in the annual action plan for 2024 and were implemented without any plan. Accordingly, more than Rs. 63 million has been spent on the 'Vigamanika Harasara' program, aimed at organizing three provincial-level meetings with the participation of 5000 members of migrant associations, initiated by the Ministry of Labour and Foreign Employment in 2024. In addition, more than Rs. 1259 million has been spent on the 'Glocal Fair' program, held across the island with the intention of making services provided by all institutions affiliated with the Ministry of Foreign Employment available to beneficiaries at their places of residence. These matters were disclosed at the COPE meeting held on the May 23rd under the chairmanship of (Dr.) Nishantha Samaraweera, Member of Parliament, which met at Parliament to examine the audit reports for the financial years 2022 and 2023 of the Sri Lanka Bureau of Foreign Employment and its current performance. At this meeting, the Chair of the Committee stated that the Glocal Fair program had been initiated prior to receiving Cabinet approval and that the relevant Cabinet memorandum had been submitted for approval while the program was being implemented. He also pointed out that only Rs. 2 million is allocated annually for such programs, raising questions as to whether spending as much as Rs. 1259 million had actually achieved its intended objectives. He questioned the officials on this matter. Further, the Committee inquired into the purchase of a trade stall for Rs. 170,000 during the initial phase of the Glocal Fair program and the subsequent acquisition of a trade stall at a cost of Rs. 500,000. The Chairman of the Committee emphasized that significant funds allocated for productive programs have instead been wasted on unplanned and purposeless programs. Moreover, it was revealed during the Committee that the 'Rataviruwo' housing loan program implemented in collaboration with the Sri Lanka Samurdhi Authority in 2013 had not been carried out in accordance with the five-year Memorandum of Understanding signed, and as a result, Rs. 100 million due to the Bureau has not yet been received. However, officials informed the Committee that the Sri Lanka Samurdhi Authority has now agreed to release the amount. The Committee questioned the number of beneficiaries who received housing loans under this program, but the officials responded that they do not possess such data. Accordingly, the Committee Chairman stated that no follow-up has been conducted on this program and instructed the officials to submit a comprehensive report covering the full timeline of the 'Rataviruwo' housing loan program from inception to date. It was also pointed out by Hon. Members of Parliament participating in the Committee that the Sri Lanka Bureau of Foreign Employment has acted beyond its regulatory mandate. The Committee emphasized the urgent need to devise a plan to utilize the Bureau’s current fixed deposits amounting to Rs. 18 billion more effectively. Furthermore, the Committee inquired about actions taken concerning the inactive Kuwait Compensation Fund, which had a balance of Rs. 5.1 billion as of December 31, 2023. Officials informed the Committee that plans have been made to use this fund to provide necessary training for domestic workers going abroad and to establish a pension scheme for migrant workers. The Committee also discussed financial fraud committed by employment agencies that have charged unjustified fees from migrant workers. It was clarified during the Committee that every migrant worker traveling independently must be registered with the Sri Lanka Bureau of Foreign Employment and pay a registration fee to the Bureau. Similarly, even when employment agencies facilitate foreign employment, the workers must pay the registration fee to the Bureau, of which 70% is refunded to the respective agencies. However, due to fraudulent activities where independently migrating workers are falsely recorded as agency-facilitated workers, the Committee Chairman decided to appoint a sub-committee to investigate the related financial fraud. Hon. Members of Parliament Anuradha Jayaratne, Attorney at Law, Mujibur Rahman, M.K.M. Aslam, (Mrs.) Nilanthi Kottahachchi, Attorney at Law, Samanmali Gunasingha, Mayilvaganam Jegatheeswaran, (Dr.) S. Sri Bavanandaraja, Sujeewa Dissanayake, Jagath Manuwarna, Ruwan Mapalagama, Sunil Rajapaksha, Darmapriya Wijesinghe, Asitha Niroshana Egoda Vithana, (Dr.) Pathmanathan Sathiyalingam, Thilina Samarakoon, Chandima Hettiarachchi, Dinesh Hemantha, and Lakmali Hemachandra, Attorney at Law were present at the Committee meeting held.
2025-05-28
Hon. Member of Parliament Ajith P Perera was elected as the Chairman of the Sectoral Oversight Committee on Infrastructure and Strategic Development. The election was held during the inaugural meeting of the Committee for the Tenth Parliament, convened yesterday (May 27) at the Parliament complex. In line with a prior agreement between the ruling party and the opposition, the chairmanship of this particular Sectoral Oversight Committee was to be offered to a member of the opposition. Accordingly, the name of Hon. MP Ajith P Perera was proposed for the chairmanship by Hon. MP Nalin Bandara Jayamaha and seconded by Hon. MP Jagath Vithana. Subsequently, the National Transport Commission (Amendment) Bill, which is scheduled to be debated for the second reading in Parliament on 5th of June, was discussed here and officials from several relevant institutions including the Ministry of Transport, Highways, Ports and Civil Aviation were present. The officials said that this amendment bill was presented by including provisions to solve the practical issues that the Transport Commission had been facing for a long time and the bill was approved by the committee. The basic issues regarding the fundamental changes that should be made in the transport sector were also discussed here. Hon. Members of Parliament Manjula Suraweera Arachchi, Danushka Ranganath, Asitha Niroshana Egoda Vithana and Shantha Pathma Kumara Subasingha were also present in this committee meeting.
2025-05-27
(Dr.) Janaka Senarathna, Hon. Member of Parliament representing the National People's Power, was elected as the Chair of the Sectoral Oversight Committee on Science, Technology and Digital Transformation. Hon. Member of Parliament was elected today (May 27), during the inaugural meeting of the said Sectoral Oversight Committee of the Tenth Parliament, held in Parliament. Among the 7 Sectoral Oversight Committees established for the Tenth Parliament, this Committee is one of the 4 for which the Chair is elected from the governing party. The name of (Dr.) Janaka Senarathna was proposed for the position of Chair by Chathuranga Abeysinghe, Hon. Deputy Minister of Industry and Entrepreneurship Development, and was seconded by Hasara Liyanage, Attorney at Law, Hon Member of Parliament. Furthermore, during this Committee meeting, the Personal Data Protection (Amendment) Bill, scheduled for its Second Reading on 2025.06.03, was reviewed and approved. Accordingly, the debate for the Second Reading of the Personal Data Protection (Amendment) Bill is scheduled to be held on Tuesday, June 03rd. Chathuranga Abeysinghe, Hon. Deputy Minister of Industry and Entrepreneurship Development, and Hon. Members of Parliament Lasith Bhashana Gamage, Hasara Liyanage, Attorney at Law, and Chandima Hettiarachchi were present at this Committee meeting held as members of the Sectoral Oversight Committee on Science, Technology and Digital Transformation.
2025-05-26
A meeting of the Parliamentary House Committee was held on 23rd May 2025 under the patronage of the Chairman of the Committee, Hon. Speaker Dr. Jagath Wickramaratne, to review the decision taken at the meeting of the Parliamentary House Committee held on 21st May 2025 to revise the rates charged for meals for the Executive Grade Officers and Non-Executive Staff Members of Parliament.During the Committee meeting, it was decided to revise the prices of meals for the Parliamentary Staff as follows with effect from 01.06.2025. Accordingly, it was decided to charge Rs. 4000 per month for an Executive Grade Officer and Rs. 2500 per month for a Non-Executive Staff Member.The Committee further decided that the current rates charged for meals purchased from the Parliament Staff Cafeteria by the drivers of Hon. Members, Police Officers, President/Prime Minister Security Officials and journalists should remain unchanged.The revision of these rates is a decision taken once every three years on the request of the Parliament Staff based on the recommendations made by the Ministry of Finance regarding the cost of meals provided to the Parliament Staff.This House Committee is a committee consisting of Members of Parliament from the ruling party and the opposition.
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