News
Govt. auditors returning to Litro offices after a lapse of two years
By Shamindra Ferdinando
The Auditor General’s Department, in consultation with the Committee on Public Enterprises (COPE), will soon initiate the process of auditing State-owned Litro Gas and Litro Terminals after a lapse of nearly two years.
The audit inquiry gets underway in the wake of Chairman and CEO of Litro Gas Lanka Limited and Litro Terminals Theshara Jayasinghe’s bombshell revelation at his Union Place Office last Friday (5) that his organization conspired with the foreign supplier to manipulate the gas supply to the country in a bid to compel the state enterprise to further extend a two year contract now in place.
The Committee on Public Enterprises (COPE) sources say the AG has intervened after Jayasinghe withdrew a high-profile case initiated by Litro last year to thwart the due process.
Against the backdrop of Friday’s media briefing, The Island on Saturday (6) sought Jayasinghe explanation how Litro avoided government audit in spite of interventions made by the parliamentary watchdog committee in this regard. Jayasinghe said that he recently withdrew a case filed by Litro meant to deprive the AG of the opportunity to investigate the state enterprise. Jayasinghe said that quite an amount had been spent on the legal term and it should be investigated as well.
AG W.P.C. Wickramaratne yesterday told The Island that a team of officers would be sent to Litro on Monday (8) to commence the inquiry. Wickramaratne said that the AG could not intervene therein due to legal impediment caused by the state enterprise taking legal action. Asked to explain, the AG said that the court prevented the audit process in response to legal action initiated by the company.
Litro has hired President’s Counsel Romesh de Silva and Sanjeeva Jayawardena on its behalf. Sanjeeva Jayawardena represents the Monetary Board of the Central Bank of Sri Lanka for a fresh term of 6 years, up to June 2027. Appointments to the Monetary Board are cleared by the Parliamentary Council chaired by the Speaker.
Responding to another query, Jayasinghe explained how the country’s largest importer of LP gas in spite of being owned by Sri Lanka Insurance Corporation (SLIC) was audited by a private firm at the expense of taxpayers’ money regardless of serious concerns expressed by parliamentary watchdog committee COPE. Jayasinghe pointed out that those interested in extending the contract for a further period from early next year deliberately caused a gas shortage during President Gotabaya Rajapaksa’s absence. “They wanted to secure consensus on a fresh agreement. They probably felt confident the project could have been brought to a successful conclusion as the President was away in Scotland.”
Jayasinghe said that he called a media briefing after having informed the President of the disruption of the gas supply caused by interested parties.
The government in July this year brought Viyathmaga activist in place of Anil Koswatte who received the appointment in January 2020 in the wake of change of government in Nov 2019.
Current Litro and Litro Terminals Board includes Asoka Bandara and Shanthi Kumar. The Corporate Management Team consists of Janaka Pathirana, Lakmali Hapuarachchi, Mignone Wijesuriya, Wickramasinghe Kamalanatha, Jayantha Basnayaka, Pushpakumara Edirisinghe, Terrance Appuhamy, Maheshika Rajakaruna, Hiran Seneviratne and Muditha Thamanagama.
Jayasinghe stressed that as Chairman and CEO of the state enterprise he had no option but to disclose the massive racket that had been perpetrated at the expense of the government. “Their strategy was simple. They deprived the required foreign currency to procure gas in spite of direct intervention of the Central Bank,” Jayasinghe said, declaring he was ready to face the consequences of the unprecedented disclosure.
Anil Koswatte has in writing requested Finance Secretary S.R. Attygalle to inquire into the allegations directed by his successor. Attygalle didn’t answer his hand phone yesterday morning.
The Colombo Magistrate’s Court recently released Koswatte, a former Chairman of Laksala in a case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) as regards the losses caused to the government due to non-compliance with proper procurement procedures. The court issued the order after the CIABOC informed that the case could not be continued due to a technical error in the filing of the case.
Meanwhile, according to COPE proceedings pertaining to Litro Gas and Litro Terminals obtained from the Communications Department of the Parliament, the watchdog committee has inquired into the state enterprises acting contrary to specific instructions issued by the AG. In spite of the Auditor General, having obtained the approval of the Attorney General to proceed with auditing of the two enterprises, couldn’t do so as the board of directors hired private audit firm KPMG. COPE has taken up this issue in late February this year at a meeting attended by Prof. Charitha Herath (Chairman), Jagath Pushpakumara, Patali Champika Ranawaka, Premanath C. Dolawatta, S.M. Marrikar and S. Rasamanikkam.
The then Chairman Anil Koswatte, who had been present there on the invitation of COPE pointed out there couldn’t be any dispute over hiring of a private firm in terms of a decision taken by the Board of Directors of Litro Gas and Litro Terminals.
Koswastte said so when the COPE sought an explanation how the two enterprises hired a private firm as the SLIC which owned 99 percent shares of them was audited by the AG and the SLIC too backed their stand. During that meeting held on Feb 23, 2021, losses suffered by the SLIC to the tune of Rs 36 mn due to the termination of its operations in Male and Seychelles, too, was revealed.
Inquiries revealed that the SLIC that owned 99 percent of shares at Litro Gas and 100 percent shares at Litro Terminals had one vote at the Board of Directors whereas one share at Litro Gas was represented by three persons.
The COPE has repeatedly told Parliament that their authority in respect of state sector finance is questioned by various parties.
Couple of weeks after Jayasinghe succeeded Koswatte, The Island sought information pertaining to the actual situation at the state enterprise. Having asked for time to go public, Jayasinghe told the media last week that for those who robbed the country, political parties and governments did not matter. Jayasinghe alleged that powerful persons benefited at the expense of the state enterprises and the hapless public.
News
Government’s objective is to ensure the continuous functioning of the country’s economic activities and essential services through effective energy management – President
President Anura Kumara Dissanayake stated that, in light of the challenges that have arisen due to the prevailing conflict situation in the Middle East, plans are being implemented to manage energy resources effectively while ensuring the uninterrupted continuation of the country’s economic activities and essential services.
The President made these remarks while participating in a discussion held on Monday (16) afternoon at the Presidential Secretariat to review the immediate measures required to ensure the country’s energy conservation and maintain the uninterrupted functioning of economic activities and essential services, in view of the current disruptions affecting energy supply.
During the discussion, which was attended by the relevant Ministers and Ministry Secretaries, special attention was focused on the measures required to ensure the uninterrupted continuation of public services in light of the prevailing situation.
Extensive discussions were also held on alternative methods that could be adopted in maintaining the operations of government offices. In this context, attention was drawn to the possibility of limiting energy consumption while continuing essential services by granting a one-day holiday for the public service.
Particular attention was also given to examining alternative measures that could be adopted to ensure the continued provision of services with minimal energy consumption, taking into account the specific nature and practical requirements of sectors such as education, health, tourism, fisheries, industry, agriculture, ports and shipping, airport services and digital services.
The President instructed a committee, comprising Ministry Secretaries and sectoral experts, to submit a report by the end of today to determine the fuel allocation required to maintain services in the key sectors.
In addition, the discussion highlighted the importance of making ministerial-level decisions regarding the practical feasibility of performing official duties from home under such circumstances. It was proposed that decisions on summoning officers to their workplaces be delegated to the heads of institutions and that appropriate methods be adopted to ensure the uninterrupted continuation of services.
In view of the prevailing situation, the President paid special attention to the challenges faced by farmers in the agricultural sector and by small and medium-sized industrialists in the industrial sector.
The President further emphasised that, in the current circumstances, the contribution and commitment of all are essential to minimise the potential impact on the country’s economy, while noting that certain groups may be provided with assistance through relief measures.
It was noted that the introduction of the QR system is intended to manage daily fuel consumption in response to the ongoing challenges. This system will allow for the daily analysis of fuel allocations, emphasising the importance of releasing fuel in a manner that safeguards the country’s energy conservation while supporting economic and service activities.
The discussion also highlighted the importance of using the QR system in an orderly manner during fuel distribution and the need for each Ministry to promptly provide all necessary data to the Ministry of Digital Economy. Accordingly, it was proposed that the relevant Ministries, together with the legally recognised petroleum institutions, work to further streamline the QR system.
In addition, it was proposed to temporarily suspend state celebrations in light of the prevailing situation and to establish a procedure for informing the private sector of any further measures the Government intends to take in this regard.
Prime Minister Dr. Harini Amarasuriya, Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath, Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, Minister of Health and Mass Media Dr. Nalinda Jayatissa, Minister of Public Administration, Provincial Councils and Local Government Professor A.H.M.H. Abeyratne, Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Minister of Industries and Entrepreneurship Development Sunil Handunnetti, Minister of Transport, Highways and Urban Development Bimal Ratnayake, Secretary to the President Dr. Nandika Sanath Kumanayake, Governor of the Central Bank Dr. P. Nandalal Weerasinghe, Senior Advisor to the President on the Digital Economy Hans Wijesuriya, Senior Economic Advisor to the President Duminda Hulangamuwa and a group of officials, including the Secretaries of the relevant Ministries, participated in the discussion.
News
UN resolution on Iran ‘unbalanced’: FM Herath
Zuhair castigates sponsors who failed to condemn aggressors
Foreign Minister Vijitha Herath said that the recently adopted United Nations Security Council (UNSC) resolution that strongly condemned Iran for, what it called, “egregious attacks” on its regional neighbours, was not fair as it did not make reference to Israeli-US initiating the latest conflict.
Herath said so in response to The Island query. He said that the government wouldn’t support country specific resolutions. Minister Herath described the resolution, adopted by a vote of 13 in favour, none against, and two abstentions (China, Russian Federation), as unbalanced. Sri Lanka refrained from co-sponsoring the resolution that had the backing of nearly 140 countries. Both India and Pakistan co-sponsored the resolution.
The JVPer reiterated that both sides should cease attacks and deal with the developing situation in terms of the UN Charter.
The Council condemned, “in the strongest terms,” Iran’s attacks against Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates and Jordan and reiterated its strong support for those countries’ sovereignty, territorial integrity and political independence.
Former Sri Lanka’s Ambassador in Iran, M.M. Zuhair, PC, said that those who co-sponsored the controversial resolution, and the UNSC that adopted it, conveniently failed to take into account unprovoked Israeli-US attack on Iran and the killing of over 1,400 civilians, including nearly 160 children and staff at a girls’ school. The former lawmaker said that the UN Security Council had failed in its fundamental duty to prevent or end the Israeli-US joint aggression on Iran or, at least, to condemn the unprovoked military action.
By Shamindra Ferdinando
News
Japan provides grant for reinforcement of Cyclone Ditwah damaged bridge
Japanese ambassador in Colombo Akio Isomata on 16 March signed a grant contract for reinforcing a bridge in Buttala under the scheme of “Grant Assistance for Grassroots Human Security Projects (GGP)”. The contract was signed with Ven. Nagolle Nandaratana, Chairman of DIMUTHU Community Development Society.
The text of the Japanese embassy press release: “The Government of Japan has provided USD 25,432 (approx. LKR 7.8 million) for a project implemented by the DIMUTHU Community Development Society. This grant will fund urgent reinforcement of the bridge abutments which were damaged by Cyclone Ditwah, and construction of retaining walls to safeguard the bridge, which ensures safe access of 3,200 residents to education and healthcare services.
Emphasising Japan’s focus on strengthening institutional frameworks to address natural disasters in Sri Lanka, Ambassador ISOMATA remarked: “As Sri Lanka moves on to the phase of recovery and reconstruction, Japan remains steadfast in its resolve to stand by the people of Sri Lanka”. Ambassador also said: “The project for which we signed today will not only contribute to the recovery and reconstruction of areas affected by Cyclone Ditwah and socio-economic development of the country, but will also stand as an enduring symbol of the unwavering friendship between the peoples of Japan and Sri Lanka.”
Commenting on the receiving of this grant assistance, Ven. Nagolle Nandaratana, Chairman of DIMUTHU community Development Society, stated, “Japan and Sri Lanka share a beautiful, long-standing friendship. Beyond just development, we’ve always admired the Japanese way of doing things—with precision, discipline, and kindness. This approach has truly been our guide in making our past collaborations, like our water projects and community buildings, such a lasting success.
Special thanks to the Ambassador, the hardworking Embassy team, and our coordinator for making this happen. “
Since 1989, Japan has been providing a total of USD 62 million in assistance for Sri Lanka through the GGP (Grant Assistance for Grassroots Human Security Projects) scheme.”
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