News
Minister sees opportunity for lawmakers to repair tarnished image
Each MP to receive Rs 100 mn
By Shamindra Ferdinando
In spite of the ongoing financial crisis taking a turn for the worse, the SLPP government intends to allocate Rs 100 mn to each Member of Parliament, Rs 20 mn to each former Provincial Council member and Rs 4 mn each to Local Government members through Budget 2022.
SLPP Chairman and Foreign Minister Prof. G.L. Peiris and Aviation Minister Prasanna Ranatunga, who is also the Gampaha District SLPP leader recently, announced plans to release funds, at separate meetings.
Addressing the media, at the SLPP office, at Battaramulla, Prof. Peiris explained that Finance Minister Basil Rajapaksa would allocate Rs 2 mn to each Grama Sevaka division, Rs 3 mn to each Local Government ward area, Rs 20 mn to each Deputy Chairman of a District Coordinating Committee and Rs 100 mn to each Chairman of a District Coordinating Committee.
Prof. Peiris emphasised that allocation of funds would be made notwithstanding the sharp drop in VAT collection, Customs revenue, Excise duty and sharp drop in tourism as a result of the Covid-19 epidemic. The Foreign Minister pointed out that the country earned as much as USD 4.2 billion annually from the tourism industry before Covid-19 struck. According to the former top law academic, approximately 40% of the total funding would be utilised to provide employment opportunities, 40% for infrastructure development and the remaining on environmental projects and social welfare, 10 % each.
Addressing a gathering at the auditorium of the Minuwangoda Pradeshiya Sabha, Minister Ranatunga said that the funding would give parliamentarians an opportunity to fulfill their responsibilities in a way at a time their reputation had been tarnished. Minister Ranatunga reiterated the SLPP’s commitment to their programmes of action though the Opposition continued efforts to derail the government. Minister Ranatunga compared the Opposition project directed at the then President Mahinda Rajapaksa in the run-up to the 2015 presidential election and the current challenge faced by the SLPP administration.
In addition to the budget funding for people’s representatives, Prof. Peiris dealt with a range of issues, including the ongoing debate on the conducting of the much delayed Provincial Council polls. Responding to media queries, Prof. Peiris stressed that Indian Foreign Secretary Harsh Vardhan Shringla, who had been here recently, didn’t pressure the government over PC polls. The Minister said so when the media sought an explanation why the media statements issued by the government as regards FS Shringla’s visit conveniently refrained from mentioning the PC polls and the need to implement the 13 Amendment to the Constitution whereas the comprehensive Indian High Commission statement did refer to the issues at hand among the high profile agenda.
Prof. Peiris explained that the parliamentary process undertaken by the government under the leadership of Chief Government Whip Dinesh Gunawardena to conduct PC polls by March next year. Prof. Peiris said: “Parliamentary Select Committee under the chairmanship of Education Minister Gunawardena, is meeting regularly. The PSC will decide whether to introduce legislation to bring in a new mixed system or conduct PC elections under the old system.”
Declaring his participation in the PSC process Prof. Peiris emphasised one of their priorities was reaching consensus on a common system for parliamentary, Provincial Councils and Local Government polls. Prof. Peiris expressed confidence the process could be finalised within the next two to three months. He alleged that the previous government sabotaged the PC polls by doing away with the old system without introducing a replacement.
Minister Gunawardena recently said that he received a communication from the Attorney General that PC polls couldn’t even be held under the old system unless Parliament adopted a new Act in that regard. Minister Gunawardena has also explained the situation to members of the PSC at a meeting held in Parliament on Oct 08.
Prof. Peiris said that some believed the PC polls should be held under the old system for the last time. Commenting on the challenges faced by the government, Prof. Peiris said that President Gotabaya Rajapaksa wanted an appraisal of the situation, self-criticism and decide on future plans. According to him, both the Cabinet and the vast majority of people wanted a new Constitution. Therefore, a nine-member expert committee headed by Romesh de Silva, PC, had been appointed to produce a draft Constitution and that process should come to a successful conclusion before the end of this year, he said.
News
US$ 2.5 mn cyber heist exposes system failures
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.
News
AG informs SC of e-visa agreement review
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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