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.
2025-03-24
Although the former chairman stated that the series of programs, including the Smart Youth Exhibition, were carried out following a survey report, the council does not have such a report – officials of the National Youth Service Council states Provide a full report on the 3 committees that provided compensation to officials who faced complications due to political reasons, disregarding a cabinet decision – COPE Subcommittee The COPE Sub-Committee disclosed that Sri Lanka Youth Services (Pvt) Ltd, a subsidiary of the National Youth Services Council, had registered as a supplier and submitted price quotations to the council at higher rates. The matter emerged at the COPE Sub-Committee meeting chaired by Hon. Member of Parliament Chandima Hettiarachchi, which met recently (Mar. 19) in Parliament to review the Auditor General’s reports for the years 2022 and 2023, the current performance, and the progress of implementing recommendations made during the Committee on Public Enterprises (COPE) meetings held on February 18th and 20th, 2025. During the meeting held, the Sub-Committee inquired officials regarding the recommendation given to former Chairman of the Council Mr. Pasindu Gunaratne to provide all video footage related to the Smart Youth program, including the musical concert held. Officials informed the Committee that the relevant video footage had been handed over. The Committee extensively inquired regarding the payment of Rs. 120 million paid to the respective production entities for this purpose. It was disclosed that Sri Lanka Youth Services (Pvt) Ltd., a subsidiary of the National Youth Services Council, had obtained the contract at a higher cost and then outsourced the work to other institutions. Furthermore, although the former chairman stated that the Smart Youth program and exhibition had been conducted following a survey report, officials of the National Youth Services Council informed the Committee that no such report was available with them. The Chair of the Sub-Committee stated that a massive financial fraud had occurred in the conduct of the Smart Youth program. He instructed officials to conduct an independent investigation at the Ministerial level and submit a comprehensive report to the Sub-Committee within three months. He also directed the National Youth Services Council to conduct its own investigation and take legal action accordingly. Furthermore, the Committee discussed the issue of compensation payments to 40 officials who had faced complications due to political reasons. A Cabinet decision had been issued to appoint a committee of retired officials to handle these payments, but instead, three separate committees had been appointed by the council to grant compensation. The Sub-Committee instructed officials to submit a full report within two weeks, detailing the names of the officials who received compensation, the amounts paid, the dates of promotions, the dates of payments, the dates of approvals, and the names of officials who made the decisions. Moreover, the Committee extensively discussed a complaint regarding a diploma awarded by the National Youth Services Co-Operative Society Ltd (NYSCO). It was revealed that the Sri Lanka National Youth Services Council had no involvement in this diploma program operated by NYSCO. The Chairman of the National Youth Services Council further stated that NYSCO was no longer under the council’s control. Additionally, it was disclosed that the age limit for selecting the General Manager of NYSCO, which was previously set at 35 years, had now been raised to 50 years. The Chair of the Sub-Committee emphasized that the National Youth Services Council's name should not be misused and directed the council’s board of directors to investigate and take necessary actions. Furthermore, he instructed the Secretary to the Ministry to summon NYSCO’s top officials for an inquiry and stated that the Sub-Committee’s recommendations on this matter would be forwarded to the Cooperative Commissioner for necessary action. The Sub-Committee also held extensive discussions on the submission of annual reports and financial statements of the National Youth Services Council and Sri Lanka Youth Services (Pvt) Ltd to Parliament within the stipulated timeframes, as well as the proper functioning of audit and management committees. The meeting was attended by Hon. Members of Parliament Samanmali Gunasinghe, Jagath Manuwarna, Asitha Niroshana Egoda Vithana, Lakmali Hemachandra, Attorney at Law, Auditor General Mr. W.P.C. Wickramaratne, and several other officials.
2025-03-24
The Committee on High Posts, which met in Parliament recently (Mar. 21), has approved the nominations to appoint two Ambassadors and a High Commissioner. The Committee also approved the nomination to appoint the Permanent Representative of Sri Lanka to the United Nations in New York, United States of AmericaAccordingly, the nominations of Mr. Ratnayake Mudiyanselage Mahinda Dasa Ratnayake, to be appointed as the Ambassador of Sri Lanka to the Republic of Cuba and Professor Pivithuru Janak Kumarasinghe, to be appointed as the Ambassador of Sri Lanka to Japan were approved by the Committee on High Posts.The nomination of Mr. Senadheera Dumunnage Nimal Upali Senadheera, to be appointed as the High Commissioner of Sri Lanka to the United Kingdom of Great Britain and Northern Ireland was also approved by the Committee on High Posts.Furthermore, the Committee on High Posts approved the nomination of former Chief Justice Jayantha Chandrasiri Jayasuriya P.C to be appointed as the Permanent Representative of Sri Lanka to the United Nations in New York, the United States of America.Committee on High Posts which met under the patronage of the Hon. Prime Minister Dr. Harini Amarasuriya, was attended by Hon. Bimal Rathnayake, Hon. Kumara Jayakody, Hon. (Dr.) Anil Jayantha, Hon. (Dr.) Hiniduma Sunil Senevi, Hon. (Dr.) Hansaka Wijemuni, Hon. Dayasiri Jayasekara, Attorney at Law, Hon. (Mrs.) Chamindranee Kiriella, Attorney at Law.
2025-03-24
The actions taken by the Department of Motor Traffic regarding the 25 audit observations as per the recommendations of the previous COPA are unacceptable. Conduct a formal investigation again by appointing an independent team – COPA recommends. The government incurs a loss of 6.2 million due to the Department of Motor Traffic fraudulently issuing vehicle registration certificates for unused blank numbers –COPA disclose A loss of Rs. 122 million due to registration of other vehicles with cancelled foreign diplomatic vehicle numbers – Auditor General Due to the failure of charging the prescribed fees for the registration of 296 motorcycles falling under the engine capacity category of 201 to 450, the government has incurred a loss of Rs. 78.15 million. Additionally, it was disclosed at the Committee on Public Accounts (COPA) that 3,088 motorcycles had been registered without Cabinet approval and without the necessary legal documentation required for registration. This matter was discussed during a recent meeting of the Committee on Public Accounts (COPA), chaired by Hon. Member of Parliament Aravinda Senaratne, held on the 21st of March at Parliament. The discussion focused on the Auditor General's reports for the years 2020, 2021, 2022, and 2023 pertaining to the Department of Motor Traffic and its current performance. Although the Department of Motor Traffic had been summoned previously before the Committee on 10.03.2025 to discuss the concerns related to it, it was sent back due to a lack of proper preparation. Furthermore, the Committee on Public Accounts also inquired into the implementation of the recommendations issued during the COPA meetings held in 2019. A detailed discussion took place regarding 25 points presented by the Auditor General concerning illegal vehicle registrations that had occurred before the integration of the Sri Lanka Customs computer system. Investigations conducted on this matter and the disciplinary actions taken against the responsible officials by the Department of Motor Traffic were also reviewed. During this discussion, the committee expressed strong disapproval of the department’s failure to take any disciplinary action against the relevant officials. It was emphasized that the reports submitted in this regard were entirely unsatisfactory. As a result, the Chairman recommended that immediate disciplinary measures be taken and that an independent team of officials be appointed to conduct the necessary investigations. COPA also paid attention to fraudulent vehicle registration certificates issued by incorporating the engine and chassis numbers of illegally imported vehicles into pre-existing registered vehicle numbers. It was revealed that this had resulted in a loss of Rs. 1.2 billion to the government. Additionally, the committee examined the fraudulent issuance of vehicle registration certificates for unused vacant registration numbers by the Department of Motor Traffic, which had caused a loss of Rs. 6.2 million to the government. Moreover, the misuse of diplomatic vehicle registration numbers to register other vehicles had led to a financial loss of Rs. 122 million. The Auditor General emphasized the importance of making the public aware of these matters. Following an inquiry into the corruption, fraud, and irregularities that have occurred within the Department of Motor Traffic, the committee recommended that disciplinary actions be taken against all responsible officials and that the progress of these actions be reviewed monthly. It was also recommended that the relevant legal enforcement authorities take necessary steps to implement the law regarding any criminal activities that had taken place. The meeting was attended by committee members, including Hon. Deputy Ministers Major General (Retd.) Aruna Jayasekera, Sugath Tilakaratne, Sundaralingam Pradeep, Nalin Hewage and Hon. Members of Parliament, J.C. Alawathuwala, Rohitha Abeygunawardena, Hector Appuhami, Kaveendiran Kodiswaran, Manjula Suraveera Arachchi, Attorney-at-Law Sagarika Athawuda, Oshani Umanga, Ruwanthalaka Jayakody, Susanta Kumara Navaratne, Chandana Suriyaarachchi, (Dr.) Janaka Senaratne, Chanaka Madugoda, T.K. Jayasundara, Dinindu Saman, and Lal Premanath, along with several government officials.
2025-03-24
Priority given to detecting unimplemented Committee recommendations of 4 Committees including COPE, COPA The Committee Appointed to Review Non-implementation of the Recommendations of the Parliamentary Committees, met for the first time on the 21st of March under the chairmanship of Hon. Minister Harshana Nanayakkara, Attorney at Law, at the Parliament. Accordingly, discussions were held regarding which unimplemented Committee recommendations should be prioritized for review. The Committee focused on examining the non-implementation of Committee recommendations issued by the Ninth Parliament. Among these, priority was given to reviewing the unimplemented recommendations of the Committee on Public Enterprises (CoPE), the Committee on Public Accounts (CoPA), the Committee on Public Finance (CoPF), and the Committee on Public Petitions. The Committee Chair stated that the Committee expects to take necessary steps to expedite the implementation of the unimplemented Committee recommendations by connecting with the respective officials responsible of carrying out the tasks. Hon. Deputy Minister Sunil Watagala, Attorney at Law, Hon. Members of Parliament Ravi Karunanayake, Ajith P. Perera, Oshani Umanga, and parliamentary officials were present at this Committee meeting held.
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