Parliament

'COPE report needs careful study by House'

Human Resources Minister DEW Gunasekara said in Parliament that COPE report needs careful study by the House.

Following is his speech:

I am thankful to you for giving me this opportunity to table the First Report of the Committee on Public Enterprises - COPE - for the First Session of the Seventh Parliament in terms of Standing Order No. 126. It is with great pleasure that I do so.

Minister D.E.W. Gunasekara

At the outset, I wish to report to the Hon. Speaker and the House, that the Committee successfully completed its assignment of work for the period 2010-2011, which I believe, is an unprecedented record in the history of our Legislature. You can be really proud that it happened under your leadership.

The Committee, having had its first sitting on June 8, 2010, commenced its examination of institutions on August 4, 2010. There were in all 229 institutions examined for several years; some had never been summoned before the Committee. Between the years 2006 and 2010, the number of institutions examined had been only 110. The Committee thereupon decided to appoint three Subcommittees on the basis of sectors, namely Finance, Agriculture and Media and Health and Education, in order to expedite the process of examining the Public Enterprises, They were chaired by the Hon. Susil Premajayantha, the Hon. Karu Jayasuriya and the Hon. Lasantha Alagiyawanna.

The Subcommittees were assigned the small-scale enterprises while the main Committee dealt with the large-scale enterprises. The findings of the three Subcommittees were reported to the main Committee. The Report contains a Preamble and an analysis of our findings with comments, observations and recommendations in respect of each of the institutions examined. Besides, there are 22 general recommendations. Sir, audit is an integral part of the concept of transparency and accountability, be it to shareholders, owners, management, administration or the Legislature. Audit acts as an aid to management and administration, which are complimentary and not adversarial. This crucial aspect of audit needs wider appreciation by all the stakeholders.

Today, Sir, there is a perceptible global trend to increase the mandate of the Government audit, namely the Auditor-General's Department, with a view to making the Parliamentary control over the State finance, more effective. Today, we are moving more and more from the usual regularity of looking for debtors and creditors and transactions audit to the economy, efficiency, productivity and effectiveness, in view of the expanding programmes in the context of our socio-economic objectives. It needs to be understood by all stakeholders that what people finally expect from us is value for money appropriated by Parliament for expenditure. This means nothing, but economy, efficiency, productivity and effectiveness.

In this context, it has become necessary to enhance the professional capacity of audit so as to assure the people of the social relevance and worthwhileness of audit. Equally, it is necessary for the Auditor-General's Department to sustain and assert its integrity, neutrality and effectiveness. The honour and authority hitherto enjoyed by this prestigious Department should be maintained and enhanced at any cost.

The Department of Public Enterprises and the Department of Budget, both of the General Treasury, who are responsible for the appropriation of State money, are required to monitor, supervise and advise as to how those monies are prudently expanded.

The Committee proposes to concentrate, as from the year 2012, more on the performance of the institutions. It may summon large-scale enterprises for examination more often than once a year, in order to look into their performance in depth and even take steps to visit the institutions for on-the-spot investigations.

The Committee has categorized the commercial institutions into four groups: (i) those functioning profitably, (ii) those functioning at breakeven, that is, avoiding loss but failing to make a profit, (iii) those institutions whose revenue is dwindling and (iv) those institutions which are running at a loss. Regarding those enterprises which are making losses, there are some which are service-oriented and whose constraints are beyond their control.

It is the considered view of the Committee that the Report which is presented to Parliament today should receive the urgent attention of all the chief accounting officers. Its contents should be carefully noted by all the chief accounting officers in order to ensure that necessary action is pursued by the institutions.

The Internal Audit or Audit and Management Committees should function directly under the Heads of Institutions, who are required to create conducive environment for them to function effectively. Their quality needs enhancement.

Mr. Speaker, the Committee has observed that its work in the last 16 months has had the desired impact on the institutions, judging from the responses of those institutions.

I do not propose to deal with our findings at this stage of introducing the Report. The Report which contains all our findings needs careful study by the House. It is with great satisfaction that I report to the House that the Committee received the wholehearted cooperation of all Members of the Committees, irrespective of which side they belong to.

The Committee offers its thanks and appreciation to the Auditor-General and his competent staff, to the Department of Public Enterprises and Department of Budget of the General Treasury, the officials of the Committee on Public Enterprises and the Secretary-General of the Parliament for their unstinted cooperation.

Mr. Speaker, I must inform you, that your staff in the COPE had to bear a heavy load of work, working tirelessly and expeditiously, helping the Committee to complete its assignment for the year, before the deadline. They deserve our deep appreciation.

Mr. Speaker, we completed the year's assignment given to us and it is our acceptance that we were able to strengthen the cause of Public Accountability and Parliamentary Control thereby contributing our share for good governance. I am sure that this Report will generate public interest, alert the public officers and stimulate the audit. It is our fervent hope that our recommendations will receive the attention of all stakeholders.

As from the year 2012, the Committee proposes to table before the House, quarterly or half-yearly reports of the Committee, to enable the Hon. Members to interact with the work of the Committee more effectively.

Let us translate the concept of transparency and accountability into a reality for the cause of good governance.