News
Govt. assures procurement process followed to the letter
… seeks House approval for measures to ease pressure on foreign reserves
By Shamindra Ferdinando
Cabinet spokesperson Keheliya Rambukwella yesterday (17) assured that the incumbent government followed the procurement process to the letter.
Rambukwella, who is also the media minister, told the post-Cabinet media briefing at the Information Department that the government didn’t operate outside the laid down procurement process.
The minister said so when The Island asked about Energy Minister Udaya Gammanpila’s proposal to finalise an agreement with Emirates National Oil Company (ENOC) to procure 8,400,000 barrels of Murban crude over a period of eight months commencing Oct 1, 2020.
Rambukwella was flanked by co-cabinet spokesperson Dr. Ramesh Pathirana and Director General, Information, Nalaka Kaluwewa. The other co-cabinet spokesperson Udaya Gammanpila was not present.
Acknowledging that the government shouldn’t resort to emergency purchases, Minister Rambukwella said that there were instances the government had no option but to do so under certain circumstances.
Pointing out that the government had taken a series of steps to ease growing pressure on foreign reserves and also sought international assistance at the ongoing UNHRC sessions to save the national economies of countries ruined by COVID pandemic, The Island asked how the new parliament could curb waste, corruption and irregularities as COPE (Committee on Public Enterprises) and PAC (Public Accounts Committee) faulted successive governments. Minister Rambukwella took up the stand that the current dispensation followed procedures.
At the commencement of the briefing, the media was informed ot a government decision to secure parliamentary approval for specific action taken in terms of Imports and Exports (Control) Act, No 1 of 1969 to ease pressure on foreign reserves. A committee appointed in line with proposals made by President Gotabaya Rajapaksa on April 1, 2020, the government imposed severe restrictions on imports after having categorised imports into three classes.
Minister Rambuwella said that the balance of payments was an issue as even far bigger countries struggled to tackle due to the difficulties caused by the continuing COVID pandemic.
The Cabinet at its meeting on Sept 16, 2020, decided to submit four special gazette notifications issued in terms of Imports and Exports (Control) Act, No 1 of 1969 for parliamentary approval.
Minister Rambukwella also said his proposal to print passports as well as confidential documents locally had received the attention of the Cabinet of ministers. The Cabinet had decided to undertake a comprehensive study to ascertain whether the Government Printer could handle the tasks, he added.
The media also raised the issue of the alleged liberalisation of policy to facilitate the proposed Millennium Challenge Corporation (MCC) Compact. Denying such allegations, the ministers said the government decision was to provide state land to the needy in line with the President’s 2019 election manifesto.
The media sought an explanation as to how the government proceeded with land distribution on the basis of recommendation/approval provided by grama sevakas. Asked whether a deliberate attempt was being made to distribute state land in a haphazard manner against a series of wanton destruction of forest land, the ministers denied the accusations.
The ministers assured that the government wouldn’t interfere in the ongoing investigations into the destruction of Ramsar wetlands at Anavilundawa allegedly by former Chairman of Arachchikattuwa Pradeshiya Sabha Jagath Samantha. The media asked whether the suspect remained at large because of government interference as he was the elder brother of State Minister Sanath Nishantha.
The media said that in spite of a committee appointed by the government having identified Jagath Samantha as the main suspect, the police were yet to arrest him. The ministers pointed out that the government members had raised the issue in Parliament therefore there was no basis for accusations of an attempted cover up of the Anavilundawa incident.
COPF final report on USD 2.5 mn cyber fraud recommends action against all responsible
The US$2.5 million loss incurred during Sri Lanka’s foreign debt repayment to Australia was a clear case of a cybercrime and theft, Committee on Public Finance (COPF) Chairman Dr. Harsha de Silva told Parliament yesterday.
Presenting the COPF final report on the cyber fraud, Dr. de Silva said the incident amounted to a serious financial crime and called for a comprehensive investigation, by law enforcement authorities, to identify and prosecute all those responsible.
The report revealed serious governance, procedural and operational failures that enabled the fraudulent transfer of public funds, while recommending sweeping reforms to strengthen cybersecurity, financial controls and public debt management systems.
According to the report, officials of the Treasury and the Central Bank bore responsibility for governance lapses that contributed to the failures. It also highlighted the fact that the Ministry of Finance was operating an outdated Microsoft Exchange Server after security support had ended, while basic safeguards, such as multi-factor authentication, had not been implemented.
The COPF said suspicious payment instructions linked to debt repayments involving India, the United Kingdom, Germany and Belgium had also been detected, preventing further losses. However, the US$ 2.5 million fraud materialised only in the repayment transaction involving Australia.
The report has noted that officials had failed to verify lender email domains, relied on unverified email communications and lacked adequate internal controls, allowing the fraud to continue for months.
Although the investigation uncovered system-wide weaknesses across several institutions, only four mid-level Finance Ministry officials had been suspended so far, the report said.
The COPF has recommended a special audit of the foreign debt repayment process, strengthened cybersecurity measures across state institutions, updated financial regulations and improvements to public debt management systems.
by Saman Indrajith
News
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
Opposition Leader Sajith Premadasa, together with Opposition MPs, yesterday signed a No-Confidence Motion (NCM) in Parliament against Justice Minister Harshana Nanayakkara.The move comes in response to the unrest at the Negombo Prison, where both prison officers and inmates were killed.
Opposition members said the Minister had failed to fulfill his responsibility and accountability regarding their safety.According to the Opposition group, the NCM seeks to hold the Minister directly accountable for lapses in ensuring protection within the prison system.
The Attorney General yesterday informed the Supreme Court that the government has decided to review the legality of agreements entered into by the previous administration to hand over the country’s electronic visa issuance operations to private companies.
Additional Solicitor General Viveka Siriwardena, appearing for the Attorney General, made the submission when the Supreme Court took up the fundamental rights petitions filed by former MPs President’s Counsel M.A. Sumanthiran, Patali Champika Ranawaka, and Rauff Hakeem, challenging the previous Cabinet’s decision to outsource the e-visa system.
The petitions were heard before a three-judge bench, comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli and Arjuna Obeyesekere.
The Additional Solicitor General informed court that the current Cabinet had appointed a subcommittee to examine the legality of the agreements with the private companies and requested time to report on its findings, stating that the review was still underway.
President’s Counsel Sumanthiran, appearing as one of the petitioners, told the court that although the present government had indicated its intention to cancel the transaction, the petitioners wished to proceed with the case.
He noted that members of the current Cabinet had been named as respondents in the petitions.The Supreme Court directed the petitioners to issue notice on the members of the current Cabinet, named as respondents, and fixed September 29 for further proceedings.
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US$ 2.5 mn cyber heist exposes system failures
Opposition signs no-confidence motion against Justice Minister for dereliction of duty over Negombo Prison deaths
AG informs SC of e-visa agreement review
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