MPs get special audit report on the visa scam at Immigration and Emigration Dept.

SJB Colombo District MP Dr Harsha de Silva told Parliament yesterday that the special audit report on Sri Lanka’s controversial e-visa contract, awarded to a foreign consortium by the Department of Immigration and Emigration, had been made available to the MPs.

The report includes nine recommendations, which the Chairman of the Committee on Public Finance Dr de Silva said, should be implemented immediately. The audit report, by Acting Auditor General G. H. D. Dharmapala, recommends several key reforms, including legal clarity on the visa issuance process under the Immigration and Emigration Act of 1948, and the need for continuous improvement in service delivery through modern technology.

Dr de Silva said that the report has recommended that any outsourcing of services must follow proper tender procedures, include cost-effectiveness studies, and ensure transparency in revenue collection.

Audit recommendations in the report by Acting Auditor General G.H.D. Dharmapala: Identify and act in accordance with legal provisions relating to the visa issuing process for carrying out activities under Immigration and Emigration act 20 of 1948 or amend it as necessary.

1.  It is the responsibility and duty of the Department of Immigration and Emigration to provide a more efficient and friendly service to its customers by using improved methods in line with the advancement of technology, and therefore, it is necessary to work continuously towards that end.

2.  When outsourcing its services, the Department of Immigration and Emigration should conduct a cost-effectiveness study on the services to be outsourced, follow tender procedures so that all interested parties can participate, and select institutions with conditions that are profitable for the government and beneficial to the country.

3.  When entering into agreement with local/ Foreign service providers, it is necessary to determine the legality of those institutions, how their obligations are implemented within the framework of tax, laws and other regulations in Sri Lanka, and the transparency of fees and revenue collected by and on behalf of the government.

4.  GBS Technology Service & IVS Global-FZCO, VF Worldwide Holding Ltd., during the short period of its operation, this institution took steps to recover the 18 percent and 2.5 percent SSCL collected from visa applicants on behalf of the Sri Lankan government and to draw the attention of authorized institutions to calculate the income tax payable on the income earned and remit it to the Inland Revenue Department.

5.  In the course of the unilateral proposal submitted by GBS Technology Service & IVS Global-FZCO, VF Worldwide Holding Ltd., from its inception to its short-term implementation, the officers who participated in the preparation of Cabinet papers, the appointment of committees, the evaluation of committee reports, not obtaining the observations of the Ministry of Finance which has the power to collect state revenue, and who performed basic functions such as allowing visa income to be collected in a bank account in a foreign country without proper permission, should be investigated and appropriate disciplinary and other actions should be taken.

6.  Taking steps to calculate the losses and lost revenue incurred by the government through the implementation of the new project proposal and recover them from those responsible.

7.  Taking steps to select a service provider through a transparent and appropriate call for bids for a more suitable e-Visa system in the future, subject to the decisions of the case pending in the Supreme Court.

8.  This report was conducted within the scope of the Auditor General’s powers, resources, time and information presented, and therefore I did not examine whether there was any illegal or criminal activity beyond the scope of the Auditor General’s powers and resources. Therefore, if it is felt that such an examination should be conducted and it is appropriate to seek the assistance of specialized institutions or departments for that purpose then it should be done.