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COPE unearths irregularities costing billions in construction of Central Expressway

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By Saman Indrajith

Massive irregularities in the construction of the Central Expressway were revealed by the COPE (Committee on Public Enterprises) on Friday.  Sources said the irregularities had caused losses running into billiions of rupees.

They said it had been revealed that more than Rs. 1.7 billion were spent on the feasibility study on the road alone.

The delay in the commencement of work on the first section of the Central Expressway, from Kadawatha to Mirigama, during the period 2015 to 2019, had caused a financial loss of Rs. 8 billion.

Sources said it had also been revealed that the selection of SMEC Holdings for the first feasibility study had been done without following procedures.

A change in the original plan to construct the road from Kadawatha, instead of Enderamulla, to Mirigama, had warranted a new feasibility study, which had cost a lot of money. That decision had been taken by the Cabinet in 2015 without consulting experts, sources said.

COPE Chairman Prof. Charitha Herath directed the Secretary to the Ministry of Highways to submit a report on the financial losses incurred due to the abrupt change in the original project.

It was disclosed that an amount of Rs. 159 billion rupees had been allocated and that the decision at issue had been taken by the Cabinet Committee on Economic Management (CCEM). It has also been revealed that the construction work was delayed for four years due to a payment issue and work commenced only in late 2019, and the delay caused a loss of nearly Rs. 8 billion.

Irregularities in the procurement process as regards the Pothuhera-Galagedara stretch, which is the third section of the Central Expressway, have also been exposed.

The CCEM had pushed for granting the tender to Fujita although MS Taisei should have been given it in accordance with the process and this had led to the delay, sources said.

The COPE has revealed that only 5% of the work on the Kadawatha-Mirigama section has been completed and 75 percent of the work on the second section from Mirigama to Kurunegala had been completed.

The Secretary to the Ministry of Highways said the construction could be completed by next June.

The COPE recommended that a progress report be submitted on the progress of the first, third and fourth sections of the Central Expressway.

It was also revealed that a feasibility study for the construction of this expressway, prior to 2012, had cost about Rs. 284 million.

COPE Chairman also directed the Secretary to the Ministry of Highways to report on the impact of all feasibility studies on the project and its success.

Minister Mahinda Amaraweera, State Ministers Sarath Weerasekara, Dilum Amunugama, Ajith Nivard Cabraal, MPs Eran Wickramaratne, Jagath Pushpakumara and Premanath C. Dolawatta, Ranjan Ramanayake and D. V. Chanaka were present at the Friday’s COPE meeting held at the parliamentary complex.



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Cabinet approves redrafting of State Assets Management Act

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Approval has been granted at the Cabinet meeting held on 22.07.2024 to publish the draft bill of State Assets Management Act in the government gazette notification and thereby present it to the Parliament for its concurrence.

However, the draft bill couldn’t be passed in Parliament as a result of the Parliament being dissolved in the month of October 2024.

Thereafter, the draft bill was subject to further inspection by a
committee appointed which comprised of officials and authorities on the subject.

The said Committee has recognized the amendments to be made and a fundamental draft has been prepared including the proposed amendments.

Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to suspend further activities regarding the draft bill of State Assets Management Act published in the extraordinary gazette of 02.08.2024, and to direct the Legal Draftsman to prepare a draft bill based on the fundamental draft prepared by the subject specialists’ committee.

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Cooperative Employees Commission Act No. 12 of 1972 to be amended

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Considering the compliance of the Cooperative Societies’ operations with the concurrent socio – economic circumstances as well as the changes in the common law, the requirement of amending the Cooperative Employees Commission Act No. 12 of 1972 has been recognized.

A fundamental draft including proposed amendments based on the experience gained by that Commission as well as the opinions and proposals of Cooperative societies, their director board members, cooperative employees and other interested parties has been prepared.

Accordingly, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Trade, Commerce, Food Security and Cooperative development to provide instructions to the Legal draftsman to prepare a draft bill to amend the Cooperative Employees Commission Act No. 12 0f 1972, based on the said fundamental draft.

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Dilki Wathsala Marambage appointed as Director General of the Department of Technical Education and Training

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The Cabinet of Ministers granted approval to the proposal forwarded by the Prime Minister in her capacity as the Minister of Education, Higher Education and Vocational Education to appoint Mrs. Dilki Wathsala Marambage to the post of Director General of the Department of Technical Education and Training.

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