Rs.6,000 million lost due to corruption

Uditha Kumarasinghe, Rajmi Manatunga and Irangika Range

KOTTE: The second report of the Committee on Public Enterprises (COPE) was presented before Parliament yesterday revealing a staggering Rs 6,000 million loss suffered by 20 State institutions due to corruption and mismanagement.

Addressing the House, COPE Chairman Wijedasa Rajapakse identified the National Housing Development Authority (NHDA), the Ruhuna Development Bank and the Mahapola Higher Education Scholarship Trust Fund as the most corrupt of the State institutions which came under the Committee’s review.

“Around 25 houses constructed by the NHDA in Mahaiyawa at a huge cost are not fit for living. A land worth Rs 4,000 million owned by the Authority has been fraudulently sold out for a mere Rs 75 million without Cabinet approval,” he said.

The report also revealed that the authorities of the Ruhuna Development Bank had invested Rs 104 million of its funds at Vanik Inc. with knowledge of the latter’s insolvency and withdrawn only Rs 25 million of it.

“On the day the money was invested the former Chairman and the present General Manager of the Bank have received exorbitant sums into their personal accounts which were withdrawn the following day”.

Rajapakse said the Mahapola Higher Education Scholarship Trust Fund which appeared before the COPE after 25 years has suffered a major loss of Rs 1,200 million within three years as a result of the ‘On-line’ transaction which was not sanctioned by the Attorney General.

He pointed out that these fraudulent activities ultimately affected the undergraduates who were expected to benefit from the Fund.

The Land Reclamation Board has recorded a loss of Rs 900 million owing to corruption and mismanagement while the National Transport Commission (NTC) has issued 420 route permits without following the correct procedure and failed to achieve at least 20 per cent of its targets.

The COPE Chairman also pointed out that although the production of the Coconut Development Board has fallen by 33 per cent, its expenditure has increased by 107 per cent.

The Sri Lanka Bureau of Foreign Employment has failed to distribute Rs 1,627 million to be granted to 11,130 Kuwait returners for 16 years since 1991.

The Consumer Affairs Authority, Agricultural and Agrarian Insurance Board, Lunawa Development Project, Cashew Corporation, Associated Newspapers of Ceylon Ltd, Sri Lanka Rupavahini Corporation, Employees Trust Fund, Gem and Jewellery Authority and the Sri Lanka Export Development Board are among the other enterprises found to be corrupt and mismanaged.