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
Discussion on Sri Lanka Customs’ contribution for National Export Development Plan
A discussion on the modernisation initiatives required within the Sri Lanka Customs and measures to encourage exporters in support of implementing the National Export Development Plan (NEDP) 2026–2030 was held on Wednesday (17) morning at the Presidential Secretariat under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.
The meeting, organised by the Revenue Administration Reform and Modernization Bureau established under the Presidential Secretariat, focused extensively on the modernisation measures required within Sri Lanka Customs to facilitate the expansion of exports.
During the discussion, the Secretary to the President instructed Sri Lanka Customs to enhance the capacity, facilities and modernisation of the Export Facilitation Centre, where export containers are inspected, in order to create a more efficient and exporter-friendly environment.
Attention was also drawn to developing a programme aimed at encouraging exporters across the country to enter the export sector. The Secretary to the President further emphasised the need to review the Temporary Import for Export Processing (TIEP) scheme currently operated by the Customs Industrial Facilitation Division and to introduce a programme to support small and medium-sized enterprises (SMEs) that have not yet engaged in export activities.
The meeting also explored the possibility of decentralising customs operations to support the expansion of the export sector, with particular attention given to establishing a Customs Export Centre in Jaffna.
Discussions were also held on removing barriers affecting exports conducted through e-commerce platforms. It was decided to hold further discussions with the Department of Posts on measures that could be taken jointly to streamline these processes.
Participants also discussed introducing digital systems to expedite document processing, thereby reducing both, time and costs, as well as implementing a risk-based assessment mechanism that would provide greater facilitation for low-risk exporters.
It was further decided that Sri Lanka Customs, the Sri Lanka Export Development Board (EDB) and other relevant institutions would meet monthly under the leadership of the Revenue Administration, Reforms and Modernisation Bureau of the Presidential Secretariat to review progress, identify challenges faced by exporters and discuss appropriate solutions.
The National Export Development Plan has been formulated in line with the national vision, “A Thriving Nation – A Beautiful Life”, with the objective of enhancing Sri Lanka’s export competitiveness and achieving an ambitious yet realistic export revenue target of USD 36 billion by 2030.
Director General of Customs Wimal Liyanagama, Chairman of the Sri Lanka Export Development Board (EDB) Mangala Wijesinghe, Additional Directors General of Sri Lanka Customs T. Loganathan and L.K.S.D.K. Arewatta, Director of the Sri Lanka Export Development Board Dr. Sanjeewa Rathnasekara, Director of the Revenue Administration, Reforms and Modernisation Bureau of the Presidential Secretariat W.L.C. Thilakasiri and senior officials from Sri Lanka Customs and the Sri Lanka Export Development Board were also present.
[PMD]
News
Military held land: Govt. trying to maintain balance between security and civilian needs
The NPP government is trying to maintain a balance between continuing demands for releasing north-east land held by the military and post-war security requirements, says Deputy Defence Minister Major General Aruna Jayasekera (Retd), who has undertaken a series of visits to the northern and eastern provinces in the recent past to explore ways and means of releasing the land, without compromising national security requirements.
Since the armed forces brought the war to a successful conclusion in May, 2009, releasing of both privately- and state-owned land began cautiously in October, 2009, and by now over 90 percent of both categories have been released. At the height of the war, before the launch of Eelam War IV, in August 2006, Jaffna peninsula had the largest concentration of troops assigned to four Divisions.
In the first week of June, Deputy Minister Jayasekera visited the Trincomalee District to ascertain the situation. The Defence Ministry said that the Deputy Minister had assessed the current status of such lands and received briefings from senior military officers and relevant officials on security and administrative aspects regarding the properties.
Following the field inspection, the Deputy Minister chaired a meeting at the Governor’s Secretariat Office where the discussion focused on what the Defence Ministry called a balanced and practical approach to address land-related issues, protect the livelihoods of the people, and ensure that national security requirements were properly managed.
Jayasekera, with a career spanning well over three decades, retired in November, 2019, after having last served as the Eastern Commander for about a year.
During his June visit, the Deputy Minister visited various security forces establishments, including the 22 Infantry Division.
A senior retired military official said that those who had been demanding that all security forces held land, both state- and privately-owned, be released, have conveniently forgotten that this was made possible due to the eradication of the LTTE.
The Deputy Defence Minister conducted a series of field visits in the Jaffna and Wanni regions to assess the security situation and operational commitments. According to the Defence Ministry, the Deputy Minister addressed senior tri forces personnel at the Security Forces Headquarters – Jaffna (SFHQ-J) and the Security Forces Headquarters – Wanni (SFHQ-Wanni).
The Deputy Minister chaired civil-military coordination meetings in the Mannar and Jaffna districts to the ongoing land ownership issues, fostering socio economic growth, and streamlining local infrastructure layout in close cooperation with the regional administrative mechanism. The Ministry said that the Deputy Minister inspected agricultural zones, private residences and public common areas, presently placed within the operational infrastructure of the Sri Lanka Navy across several locations, in Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimune.
Members of Parliament for the Vanni Electoral District, Selvam Adaikalanathan, Kader Masthan, Thurairasa Ravikaran and the District Secretary for Mannar were also present at the meeting where matters related to socio economic grievances, local infrastructure demands, and land rights of the local residents were central topic in the agenda.
The Deputy Minister of Defence chaired a second meeting at the Governor’s Office in Jaffna where the main focus was existing land issues in the districts of Vavuniya, Mannar, Mullaitivu, Kilinochchi, and Jaffna.
The Jaffna proceedings were co-chaired by the Minister of Fisheries, Aquatic and Ocean Resources and Chairman of the District Coordinating Committee for the Jaffna and Kilinochchi Districts Ramalingam Chandrasekar and Deputy Minister of Co-operative Development Upali Samarasinghe.
The Defence Ministry said that stability depended on striking an optimal balance between prioritising national security obligations and resolving outstanding issues related to both state owned and privately used lands. “We are implementing a transparent mechanism to swiftly transition designated lands back into the hands of local communities for housing, fishing, and agriculture.”
The participation of the Commander of the Army and the Commander of the Navy underscored the importance of the discussions held in the north.
In the Mannar region the focus was on lands, presently used by the Navy, in the areas of Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimunai.
Authoritative sources said that since the end of the war, the military had given up held areas and what remained occupied were essential for security purposes. The depletion of the area under direct control should be examined taking into consideration gradual overall reduction of combined security forces strength over the years. At the end of the war, the Army had approximately 205,000 officers and men, both regular and volunteer. That figure has been reduced to 150,000 to 160,000. In line with the government thinking the Army strength would be brought down to 100,000 by 2030, a plan first announced by President Ranil Wickremesinghe.
By Shamindra Ferdinando
News
Yoshitha granted bail, travel ban imposed
Colombo Chief Magistrate Lahiru de Silva yesterday granted bail to Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, on three sureties of Rs. 5 million each, and imposed an overseas travel ban.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested Yoshitha yesterday morning when he called over to make a statement regarding an ongoing investigation into his recruitment to the Sri Lanka Navy and training at the UK Royal Naval Academy.
CIABOC said that the arrest had been made in connection with an investigation into the 2006 recruitment of cadet officers to the executive branch of the Sri Lanka Navy.
It has been alleged that individuals were recruited without meeting the required qualifications and state funds were used outside established procedures for their training at the Royal Naval Academy in the UK.
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