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2025-07-14

News Categories : Committee News 

COPE recommends legal action to take over SLIIT under the administration of the Mahapola Trust Fund following a full investigation

The Committee on Public Enterprises (COPE) recently recommended that legal steps be taken to take over the Sri Lanka Institute of Information Technology (SLIIT), which previously belonged to the Mahapola Trust Fund as an institution administered by the Mahapola Trust Fund, citing that its transformation into a fully private entity was carried out unlawfully.

Accordingly, COPE Chair Hon. (Dr.) Nishantha Samaraweera made this recommendation to Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, Mr. K.A. Vimalenthirarajah, and the Chairperson of the Mahapola Trust Fund, Former Justice Vijith Malalgoda.

This recommendation was made during the meeting of the Committee on Public Enterprises held on the 09th, when Lalith Athulathmudali Mahapola Higher Education Scholarship Trust Fund was summoned before the committee to examine the Auditor General’s reports for the years 2022 and 2023 and its current performance.

During the meeting, it was extensively discussed that the property transfer based on a Cabinet decision in 2015 carried out with the consent of the Minister at the time was unlawful. It was also noted that SLIIT had paid Rs. 408 million to the Mahapola Trust Fund in this regard, and several Members of Parliament pointed out that it is concerning for an institution originally owned by the Fund to pay such an amount back to the Fund to gain ownership.

The COPE Chair emphasized that those responsible should be duly penalized and that such unlawful and fraudulent actions must be prevented from recurring in the future.

Hon. Minister of Trade, Commerce, Food Security and Cooperative Development, Wasantha Samarasinghe, who holds the position “Founder Trustee” of the fund, stated that such fraud will not be allowed to fade into obscurity over time, and assured that further investigations will be conducted accordingly.

A former official who opposed the transfer of ownership at the time informed the committee that the institution, which had begun as a state entity with official representatives on the Board of Directors, was later illegally removed from state oversight due to greed stemming from the realization that it had become a hub of substantial financial movement.

It was also discussed that some parties might attempt to foster a misconception that these investigations could cause the collapse of a university attended by a large number of students. Therefore, the committee emphasized that while SLIIT should continue its current operations, its administration should be returned to the Mahapola Trust Fund. This would, in turn, enable a greater number of students to pursue degree programmes at a more affordable cost.

Attention was also drawn to the previous government's failure to properly fill key internal roles in the Fund, including the Internal Auditor position. COPE highlighted that having an inadequately staffed workforce in an institution that handles such a large amount of funds raises serious concerns about its efficiency.

Discussions also covered the current status of companies administered by the Mahapola Trust Fund, including the National Wealth Corporation (Pvt) Ltd and its subsidiary NatWealth Securities Limited, both of which have been incurring losses. As such, the committee decided that a Commercial Audit should be conducted, and appropriate next steps taken.

Further, attention was drawn to the potential to expand Mahapola Scholarships to a greater number of students eligible for university admission. The Chairperson of the Fund stated that efforts are being made to achieve maximum equity in the use of interest and other income generated from the current capital of approximately Rs. 20 billion.

In addition, the Committee discussed issues including the appointment of Trade Exhibition Officers on a contractual basis for a two-year term in 2023, and a loss of Rs. 750 million to the Fund due to the withdrawal of the selected Online Lottery Operator. The Committee directed that these matters also be subjected to a Commercial Audit and that necessary actions be taken accordingly.

The COPE meeting was attended by Hon. Members of Parliament including Dayasiri Jayasekara, Attorney at Law, S. M. Marikkar, Nilanthi Kottahachchi, Attorney at Law, Samanmalee Gunasinghe, Jagath Manuwarna, Ruwan Mapalagama, Asitha Niroshana Egoda Vithana, Thilina Samarakoon, Chandima Hettiarachchi, Lakmali Hemachandra, Attorney at Law, and Dinesh Hemanta.

Also in attendance were Former Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, P.M.B. Athapaththu, and Secretary to the Ministry of Education, Higher Education and Vocational Training, Nalaka Kaluwewe, along with several other officials.

 




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