Ridiyagama farm lost Rs. 173 million in 2017 and 2018

The Committee on Public Enterprises (COPE) has directed the Secretary to the State Ministry of Livestock and Farm Promotion and Dairy and Eggs Related Industries to review the controversial milch cow project, under the previous government, and submit a full report urgently.

Under a subsidy scheme to introduce high-yielding imported pregnant cows from Australia in 2017, the last government distributed 3,030 substandard cows, imported from there, and distributed them among dairy farm investors.

The COPE uncovered that the National Livestock Development Board (NLDB) owned Ridiyagama farm that holds cattle imported in 2015 had incurred a loss of Rs. 173 million in 2017 and 2018.

The COPE has found out that feed worth Rs. 508,793,160 had been purchased for cattle, from 1 October 2017 to 30 September 2018 in violation of the guidelines given by the Procurement Committee.

The Chairman of COPE Prof. Charitha Herath pointed out that many issues had arisen due to the improper financial decisions of the NLDB.

The COPE has also instructed the NLDB to carry out its functions within the legal framework.

State Minister Susil Premajayantha, MPs Eran Wickramaratne, Premnath C. Dolawatte, and Shanakiyan Rasamanickam were present at the COPE Committee meeting, held to review the Auditor General’s reports for the years 2016 and 2017 and the current performance of the NLDB.

The COPE also said that the Annual Reports of the NLDB from 2017 to 2020 had not been tabled in Parliament. Prof. Herath said that the inability to table the annual reports at the proper time prevented the COPE from determining the progress made in more recent times. He directed the Ministry Secretary to expedite submission of the reports to Parliament.

The COPE also found that 166 vacancies had been left unfilled at the NLDB for some time. Several executive posts have also fallen vacant. It observed that the NLDB had to create a legal officer’s post.

The NLDB, by 31 December 2016, had constructed buildings worth Rs. 194,565,192 and structures worth Rs. 701,358,733 in 24 farms. Although the NLDB had been running these farms from 1974 and 1992, the land where they are located had not been formally acquired by the NLDB, the COPE noted.

The COPE also found that three institutions, the NLDB, the Mahaweli Livestock Enterprises Ltd., and Sri Lanka Poultry Development Company (Pvt) Ltd., owned 12,617.43 hectares of land. But by the end of May 2019, 2,311.35 hectares of those lands had remained unutilised.

The COPE also found that the NLDB possessed machinery capable of producing 3.75 tons of cattle feed at a time, but these machines had not been utilised properly. Farms at Menikpalama, Dayagama and Ridiyagama which keep the imported cattle cannot even cover their minimum direct expenses, the COPE has noted.

The NLDB should look into the matter immediately, Prof. Herath said.