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Shocking lapses in revenue collection revealed

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COPA concerned over Rs. 7.5 bn spent on upgrading integrated computer system 

By Shamindra Ferdinando 

Parliamentary watchdog-COPA (Committee on Public Accounts), in its latest report has highlighted significant loss of revenue and misuse of public money caused by the failure on the part of the Department of Inland Revenue, Sri Lanka Customs and Department of Excise to streamline their operations.  

COPA Chairman Prof. Tissa Vitarana presented his first report to Parliament on July 20. The COPA consists of 22 members representing both the government and the Opposition. The COPA report dealt with the Auditor General’s reports on Department of Inland Revenue, Sri Lanka Customs and Department of Excise. 

Pointing out that as at July 31, 2020, there had been 281 vacancies (10 percent of the approved cadre), the all-party committee asserted that failure to fill 183 senior level vacancies in the Inland Revenue Department would hinder the smooth functioning of the institution.  

COPA has questioned the failure on the part of Sri Lanka Customs to recruit a suitable person to the post of Legal Officer. The vacancy hadn’t been filled in spite of the Management Services Department approving the creation of the post, it has pointed out. 

COPA has observed that the Excise Department, too, in spite of receiving approval from the Management Services Department on June 30, 2020 failed to recruit a legal officer though it being an essential post. There had been 35 senior and 66 tertiary level positions among altogether 292 vacancies in what the watchdog committee called a vital part in overall revenue collection mechanism. 

Asserting that the three above-mentioned institutions were responsible for the collection of 90 percent of government revenue, COPA alleged that the continuing failure to streamline operations contributed to corruption. It faulted these institutions for allowing what it called private parties to misappropriate public funds.

Former COPA Chairman and incumbent member lawmaker Lasantha Alagiyawanna yesterday (28) said that tangible measures were required to ensure proper collection of revenue. Acknowledging irregularities had undermined the whole process, the SLFPer explained how those responsible for revenue collection manipulated the system for their benefit at the expense of the national economy.

State Minister of Co-operative Services, Marketing Development and Consumer Protection Alagiyawanna said that the continuing registration of vehicles imported for a particular purpose as dual purpose vehicles was nothing but a crime. Lawmaker Alagiyawanna said that in spite of interventions made by parliamentary watchdogs, COPA, COPE (Committee on Public Enterprises) and COPF (Committee on Public Finance) the situation remained quite unsatisfactory.

Responding to another query, lawmaker Alagiyawanna said that relevant ministers should take remedial measures.

COPE member Dr. Harsha de Silva yesterday said that the government revenue was now at a paltry 9.2 percent of the GDP (Gross Domestic Production). One-time non-cabinet minister de Silva said that perhaps it was one of the lowest in the world. 

Vitarana’s outfit has recommended urgent amendments to Acts pertaining to the Inland Revenue Department as well as Sri Lanka Customs to facilitate the revenue collection process. As regards Sri Lanka Customs and Motor Traffic Department, COPA underscored the urgent need to amend relevant Acts as existing laws seriously hindered revenue collection procedures. COPA also called for modification of existing laws pertaining to the Excise Department to enable the institution to achieve its primary objectives.

Pointing out that a vast sum of money had been spent on developing integrated computer systems, COPA underscored revenue collection mechanisms that couldn’t be perfected without the availability of such methods. COPA called for the development of what it called a National Coordination Plan meant for strengthening of the revenue collection process.

COPA revealed that a staggering Rs 4 bn had been spent so far on modifying/updating the system at the Inland Revenue and a further Rs 3.5 bn was required to complete the work. The 22-member COPA has expressed serious concern over the large amount of funding made available to still unfinished project.

 

 

 



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Heat Index at Caution level in Northern, North-central, Western, Sabaragamuwa, Eastern, Southern and North-Western provinces and Monaragala district

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Heat index Advisory issued by the Natural Hazards Early Warning Centre At 4.00 p.m. 24 April 2024, valid for 25 April 2024

Heat index, the temperature felt on human body is expected to increase up to ‘Caution level’ at some places in Northern, North-central, Western, Sabaragamuwa, Eastern, Southern and North-Western provinces and Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Two Indians recruiting Lanka’s ex-servicemen for Russia-Ukraine war

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Dayasiri

MP Dayasiri Jayasekera informs House:

By Saman Indrajith

Parliament was yesterday informed that two Indians were recruiting ex-Sri Lankan servicemen to fight in the Russia-Ukraine war. SLFP MP Dayasiri Jayasekera said the leading operator had identified himself as a lawyer while his brother called himself a doctor.

They were in touch with ex-servicemen of Sri Lanka and offering them jobs as general camp helpers for either Ukraine or Russia, Jayasekera said. “But once they reach either Russia or Ukraine, they are not rostered for general camp duties; they are made to fight. So, Lankan ex-servicemen end up shooting one another from Russian and Ukrainian sides, the MP said, adding that a Lankan ex-serviceman, by the name of Kusantha Gunawardena had gone missing. He had been recruited as a general camp helper and sent to a Donetsk-region camp identified as BL/Y/41698/NO3.

There he had been deployed to work in a military tank which came under attack by Ukrainian drones , Jayasekera said. Two of his colleagues were killed but Gunawardena survived the attack. “However, there is no more information about this soldier. Now, he is missing,” Jayasekera said.

These ex-servicemen are lured through online and social media advertisements, Jayasekera said. “There are reports that a major is in custody for his involvement in enticing ex-servicemen to fight in Russia. Another former officer’s name, too, has been mentioned regarding this. Each ex-serviceman has been asked to pay Rs 1.8 million each to the racketeers to secure the jobs.

Leader of the House Minister Susil Premajayantha said that the government would respond to the matter soon.

Justice Minister Dr. Wijeyadasa Rajapakshe said that there were several investigations in progress by several agencies, including the police, military as well as the Foreign Ministry. There are reports of Sri Lankan ex-servicemen fighting in the Russian and Ukrainian armies as mercenaries. The police have received information that the recruitments are being conducted by institutions operating as employment agencies. Public Security Minister Tiran Alles would appraise the House of the progress of those investigations on Thursday, Minister Rajapakshe said.

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Uma Oya project inaugurated

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Iranian President Ebrahim Raisi and President Ranil Wickremesinghe at the commissioning of the Uma Oya project yesterday (pic courtesy PMD)

Iranian President Dr. Seyyed Ebrahim Raisi and President Ranil Wickremesinghe yesterday (24) inaugurated the Uma Oya Multipurpose Development Project (UOMDP).

The Iranian leader arrived in Sri Lanka under tight security via the Mattala International Airport, where he was accorded a warm welcome by Prime Minister Dinesh Gunawardena.

President Wickremesinghe invited Dr. Raisi though some interested parties are believed to have expressed concern over the move against the rising tensions in West Asia in the wake of tit-for-tat Iranian retaliation for the Israeli bombing of the Iranian consulate in Damascus.

Dr. Mahmoud Ahmadinejad’s visit in April 2008 was the last such by an Iranian President.

The Iranian-funded project would generate 120 MW of additional hydro power to Sri Lanka.

The Uma Oya Project, one of the major development projects in recent times, was initiated in 2007 when Dr. Mahmoud Ahmadinejad was the President of Iran and Mahinda Rajapaksa was the President of Sri Lanka. The Sri Lankan then Ambassador to Tehran (2006-2012)

M. M. Zuhair, PC successfully initiated discussions with Iranian authorities for an interest-free oil purchase package on deferred payment terms at the height of the war with the LTTE; another US $ 105 million Rural Electrification project, plus the Uma Oya multi-Purpose Project, initially estimated at US $ 450 Million, all of which were signed by President Mahinda Rajapaksa, when he visited Tehran on 27/11/2007, and successfully concluded with the Oma Oya being the last to be completed.

Iranian President Dr. Ahmadinejad offered to modernise the oil refinery at Sapugaskanda when he paid a visit to Sri Lanka in 2008 but was not pursued by Sri Lanka following US sanctions imposed for the first time on the Iranian Central Bank with implications for Sri Lankan banks dealing with the Iranian Central Bank.

Iran and Sri Lanka signed five memorandums of understanding (MoUs) yesterday, aimed at further bolstering bilateral relations between the two countries.

The Presidential Secretariat said that the primary objective of the Uma Oya project is to alleviate water scarcity in the southeastern dry region of the country by redirecting an annual average of 145 million cubic meters of excess water from the Uma Oya basin to the Kirindi Oya basin.

As a result of this project, approximately 4,500 hectares of new land and 1,500 hectares of existing agricultural land in the Moneragala District would receive water, the Presidential Secretariat said, adding that Badulla, Moneragala, and Hambantota would benefit from 39 million cubic meters of water for drinking and industrial purposes, while generating and adding 290 GWh of electrical energy annually to the National Grid.

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