News
Ex-AG backs IMF bailout conditions
reminds how Yahapalanaya diluted National Audit Bill to appease corrupt lot
By Shamindra Ferdinando
Former Auditor General Gamini Wijesinghe yesterday (06) said that the weakening of the National Audit Bill, before Parliament endorsed the new law in early July 2018, too, had contributed to the collapse of the national economy. Alleging that the then Sirisena-Wickremesinghe coalition and influential public servants sabotaged their efforts to introduce a new law that could have been effectively used against corruption at all levels, Wijesinghe pointed out that the recently issued IMF’s Governance Diagnostic Assessment report on Sri Lanka demanded that the National Audit Act should be amended.
Although the Act provided for the powers, duties and functions of the Audit Service Commission and the establishment of the National Audit Office and the Sri Lanka State Audit Service and specified the role of the Auditor General over public finance, the then government ensured it lacked key provisions to deal with public sector waste, corruption, irregularities and mismanagement, Wijesinghe said.The IMF’s 16-point preconditions for the resumption and continuation of USD 2.9 bn bailout package exposed our entirely corrupt political party and public administration system, the retired Auditor General said. Those in Opposition couldn’t exploit the IMF’s demands for their advantage because they, too, were responsible for ruination of the national economy.
Wijesinghe said so responding to SJB lawmaker Dr. Harsha de Silva’s declaration that the failure on the part of the government to address deep-rooted corruption hampered financial recovery. Wijesinghe, who served as the AG from Nov. 2015 to April 2019, emphasized that economist Harsha represented the UNP at the time that party sabotaged the National Audit Bill. “What was finally enacted by the UNP and SLFP combine didn’t address primary concerns,” the outspoken official said, adding that the original Bill was meant to rein in top public sector management responsible for massive corruption.
Responding to another query, Wijesinghe said that the enactment of the new National Audit Bill was a key pledge made by the UNP-led coalition that backed Maithripala Sirisena at the 2015 January presidential election. Actually, it was to be introduced on 19 Feb., 2015, at the commencement of their 100-day Yahapalana programme, the present day civil society activist said, adding that the UNP and those who now represented the main Opposition SJB and the then divided UPFA worked against their effort.
Wijesinghe alleged that major political parties feared offending the public service. According to Wijesinghe, political parties pursued strategies in collaboration with the top management of the public administration for their benefit. “The position taken by the IMF should be appreciated and supported though the country was humiliated”, but such external pressure from lending bodies and bilateral donors were required to compel the parliament to take remedial measures the ex-AG said.
Declaring whatever the lame excuse trotted out by the government the IMF had suspended the second tranche amounting to USD 330 mn pending fresh staff-level agreement with Sri Lanka, Wijesinghe said that regardless the country being in such a precarious situation, the Parliament continued to turn a blind eye. “Allegations traded by government and Opposition members do not serve any purpose.
Whatever happens they are still committed to continue with the same system,” Wijesinghe said, pointing out that no political leader had the courage to tackle corruption. Referring to Treasury bond scams that had been perpetrated in Feb. 2015 and March 2016, the former Auditor General said that the Parliament’s response proved the public couldn’t depend on the legislature. Wijesinghe said that Sri Lanka should have acted two decades ago when corruption emerged as a major threat to political, economic and social stability.
The IMF’s demands (1) Establishment of an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), (2) Disclosure of asset declarations of senior officials by July 2024, (3) Enactment of proceeds of crime legislation by April 2024, (4) Amendment of the National Audit Act, (5) Finalization of implementation of regulations for beneficial ownership information and creating a public registry by April 2024, (6) Enactment of Public Procurement Law by December 2024, (7) Publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, (8) Requiring the publication of all public procurement contracts above LKRs 1 billion, (9) Implementing the State-Owned Enterprise Reform Policy to ensure ethical management, (10) Abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating proposals is established, (11) Amending tax legislation to prevent unilateral tax changes without parliamentary approval, (12) Implementing short-term anti-corruption measures within revenue departments to enhance oversight and sanctions, (13) Exploring options for new management arrangements for the Employees Provident Fund to avoid conflicts of interest, (14) Revising legislation, regulations, and processes for stronger oversight in the banking sector, (15) Establishing an online digital land registry and ensuring progress in registering/titling-state land and (16) Expanding the resources and skills available to the Judicial Services Commission to strengthen justice.
News
Review of progress in reforms and modernisation of key state revenue-collecting institutions
A progress review meeting on reforms and modernisation initiatives at Sri Lanka’s key state revenue-collecting institutions was held on Thursday (15) at the Presidential Secretariat, chaired by Secretary to the President Dr Nandika Sanath Kumanayake, with the participation of representatives of the International Monetary Fund (IMF) and officials of the Revenue Administration, Reform and Modernisation Bureau (RARMB) of the Presidential Secretariat.
At the meeting, the IMF representatives commended the revenue collection efficiency of the Department of Inland Revenue, Sri Lanka Customs and the Department of Excise, the country’s three leading state revenue-collecting institutions. Extensive discussions were also held on the progress of the reform and modernisation programmes being implemented at these institutions.
Secretary to the President Dr Nandika Sanath Kumanayake outlined the progress achieved by the three institutions to date and the reforms planned for implementation in the future.
The IMF representatives also highlighted the importance of strengthening risk management, developing human resources and ensuring the efficient operation of computer systems at the respective institutions.
Senior Additional Secretary to the President Seevali Arukgoda also attended the meeting. The IMF was represented by Cindy Negus, Senior Economist in Revenue Administration for the Asia and Pacific, Europe, Middle East and Central Asia regions; Alison Lister, Revenue Administration Adviser; and Gregory Toppin, Resident Revenue Adviser in Sri Lanka. A group of senior officials from the Revenue Administration, Reform and Modernisation Bureau of the Presidential Secretariat also participated.
(President’s Media Division)
News
Cut power bills by 3-5%, don’t hike them, consumers demand
By Anuradha Hiripitiyage
Electricity tariffs should be reduced by between 3 and 5 percent instead of being increased by 2.88 percent in the fourth quarter, as proposed by the National System Operator (NSO), Electricity Consumers’ Association Secretary Sanjeewa Dhammika said.
Addressing a media briefing in Maradagahamula, Divulapitiya, Gampaha, yesterday (16), Dhammika said a proper assessment of electricity generation costs, including the contribution of hydropower, could justify a reduction in tariffs.
He said the NSO had sought approval from the Public Utilities Commission of Sri Lanka (PUCSL) for a 2.88 percent tariff increase, which was expected to generate an additional Rs. 4,438 million.
However, the Commission had indicated that an increase of only 1.46 percent was warranted, amounting to Rs. 2,245 million, he said, adding that even this increase was unnecessary.
Dhammika alleged that the proposed revision sought to pass on to electricity consumers the financial burden arising from the non-arrival of five coal shipments and failed tenders.
“The Government had said that the burden of coal-related losses would not be passed on to the public. It is therefore unjust to make consumers bear these costs,” he said.
He pointed out that the PUCSL had forecast that hydropower would account for 32.34 percent of total electricity generation in the coming quarter, while the cost of such generation would represent only 3.45 percent of the overall cost of electricity production.
Consumers should benefit from the lower cost of hydropower generation rather than bear the burden of more expensive thermal power generation, he said.
Dhammika also questioned the inclusion of Rs. 669 million in capacity charges that had not been approved by the PUCSL, as well as a further Rs. 1,069 million to repay loans relating to incomplete projects.
Including such charges in the proposed tariff revision was unjustifiable, he said.
The PUCSL has given the public until October 30 to submit their views on the proposed tariff revision.
Dhammika said the possibility of increased hydropower generation in the coming weeks, as reservoir levels rise, should also be taken into account when determining electricity tariffs.
He maintained that tariffs could be reduced by 3 to 5 percent if hydropower generation was properly assessed and coal-related losses and unapproved charges were excluded from the calculations.
He further claimed that electricity tariffs could be reduced by as much as 10 percent through the promotion of renewable energy and the effective use of solar power and battery storage systems.
The Electricity Consumers’ Association urged the Government to withdraw the proposed tariff increase, insisting that consumers should not be made to bear costs arising from coal supply problems and other disputed charges.
News
Asgiri Mahanayake calls for immediate release of Gnanasara Thera
By S.K. Samaranayake
Most Ven. Warakagoda Sri Gnanaratana Mahanayake Thera of the Asgiri Chapter has called for the immediate release of Ven. Galagodaaththe Gnanasara Thera, who is currently serving a prison sentence, following a court ruling.
The Asgiri Mahanayake made the appeal when a delegation of senior prison officials, including Assistant Commissioner of Prisons and Director of Operations Senaka Pallegedara, called on him on the 16th.
During the meeting, the prelate warned that the continued incarceration of Ven. Gnanasara Thera could lead to a volatile situation and cause public agitation.
Responding to the appeal, the prison officials informed the Mahanayake Thera that the authority to order the release of Ven. Gnanasara Thera did not rest with the Prisons Department but with the President.
Other senior prison officials, including Rajeev Srimal Silva, Sampath Warnakulasooriya and Mangala Welivita, were also present at the meeting.
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