PARLIAMENT

• Instructions to inform the public within two weeks that the statement made by the former Chairman, misleading the public is false
• COPE calls for a report on the records of all the correct data and calculations related to this
• A decision taken to hand the matter over to the Criminal Investigation Department for a formal investigation
• The Committee also displeased with the Director General pertaining to irresponsible statements
• In violation of financial regulations, the former Chairman bought a Mercedes Benz car worth of a monthly rental of Rs. 375000, COPE calls for a report
• Many vacancies including Internal Audit Officer, Finance Director – directives given to fill the positions immediately
• Instructions given to drive the collapsed administration of the Commission in the right path
• It is also emphasized that the Commission, cannot act without the approval of the Treasury just because it is an independent institution
• PUCSL to be called before COPE in another 3 months

The Public Utilities Commission of Sri Lanka was summoned before the Committee on Public Enterprises (COPE) which met on 06.09.2023 under the chairmanship of Hon. (Prof.) Ranjith Bandara, Member of Parliament.

The 2020, 2021 Auditor General's reports and current performance of the said institution was taken up at the Committee meeting held. Deputy Secretary to the Treasury Sarath Kumar, Chairman of the Public Utility Commission Manjula Fernando, Director General Damitha Kumarasinghe and other officials were invited to this event.

Special attention was paid to the following.

False statement by the Ex-Chairman

The Auditor General, pointed out that the facts regarding the statement made by the former Chairman of the Commission stating that a liter of fuel can be provided for 250 rupees is false as his data and calculations are wrong. During the previous COPE meeting, it was recommended that the Auditor General prepare a report in this regard and accordingly, the Auditor General pointed out that these calculations by the former Chairman have been done taking into account only the cost of the first customs declaration (CUSDEC) prepared on the basis of a provisional invoice submitted to the customs to clear the imported petroleum from customs. Furthermore, he pointed out in detail a number of other reasons that affect this calculation.

The Committee members pointed out that the statement made by the former Chairman by misleading the entire people in such a situation has become a complete lie today and action should be taken against such officials. The Committee Chair expressed his displeasure in this regard, pointing out that the director general of the institute has also acted irresponsibly. Accordingly, the public should be notified within two weeks through a public notice that the previous statement was wrong and ordered that a report be submitted to COPE with all the correct data and calculations in this regard. It was also decided that it should be handed over to the Criminal Investigation Department for a formal investigation. The Committee Chair emphasized that steps should be taken to stop such irresponsible activities in the future.

Ex-Chairman renting a car in violation of financial regulations

Attention was drawn to the fact that a vehicle was rented for the use of the former Chairman of the Commission without following a formal procurement process and without entering into a valid agreement. During the investigation conducted by the Auditor General, it has been revealed that a car of the category of a Mercedes-Benz has been acquired on a monthly rental basis of 375000 rupees from December 7, 2021, without a formal procurement process. Accordingly, the Auditor General also pointed out that 2.1 million rupees have been illegally paid up to May 31, 2022 and that these payments have been made in violation of financial regulations with a number of problems.

The Auditor General also said that despite submitting a number of audit queries in this regard, no investigation has been carried out by the institution. The Director General was severely criticized by the Committee Chair for answering irresponsibly when inquired about this. The Deputy Secretary to the Treasury was directed to report the action taken under Financial Regulation 119 in this regard within two weeks. The Chair also said that steps will be taken to hand over this information to the Criminal Investigation Department.

Vacancy of a number of posts including that of an Internal Auditor

It was disclosed that the post of Internal Auditor has been vacant since February and thus the audit and management committee meetings have not been held during this period. Furthermore, It was also revealed that a number of key positions including Finance Director, Human Resources and Administration Director, Deputy Director-Operations are vacant. The Deputy Secretary to the Treasury pointed out that although certain powers have been given by the Commission Act, since it is a government institute, the approval or concurrence of the Treasury and its departments should be obtained regarding its recruitment procedure, salary structure, etc. Therefore, he said that discussions will be carried out in this regard. The Committee instructed to take steps to submit solutions to resolve the issue pertaining to these vacancies within two months.

Implementation of a vehicle loan scheme without Treasury approval

It was disclosed that a car loan scheme is being implemented without the approval of the Treasury, where the Commission will bear the difference between the interest charged by the bank and the 4.25 percent. It was disclosed that this was given subject to a maximum of 5 million rupees and a repayment period of 5 years. It was emphasized that such cases are suspended by a Treasury circular, saying that it is based on a provision of the Act. Accordingly, the Deputy Secretary to the treasury was informed to notify the steps taken in this regard within two months.

Inquiries also made regarding making payments without a recommendation, approval and signature in certain payment vouchers made by the Commission. The Committee emphasized that such weaknesses should be avoided as soon as possible and the institution should be put on the right track.

It was pointed out by the Committee that although arrangements were made to work independently under the Act, the administration has completely collapsed and many irregularities have occurred due to the complete loss of treasury control. The Committee emphasized that measures should be taken urgently to control this situation.

The Committee Chair said that instead of working independently, the Commission has worked to ensure the existence of the Commission and said that the they will be summoned again in three months.

Hon. Indika Anuruddha Herath, Hon. D. V. Chanaka, Members of Parliament Hon. Mahindananda Aluthgamage, Hon. Dayasiri Jayasekara, Hon. Rohitha Abeygunawardana, Hon. Eran Wickramaratne, Hon. Nimal Lanza, Hon. Jayantha Samaraweera, Hon. Jagath Kumara Sumithraarachchi, Hon. (Major) Sudarshana Denipitiya, Hon. Upul Mahendra Rajapaksha, Hon. (Mrs.) Rajika Wickramasinghe, Hon. Madhura Withanage, Hon. (Prof.) Charitha Herath, were present at the Committee meeting held.