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Sheer negligence on the part of Treasury, Parliament revealed

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ICTA, a state entity outside public scrutiny; billions of rupees lost

By Shamindra Ferdinando

The Information and Communication Technology Agency (ICTA) of Sri Lanka has not been subjected to proper Treasury or parliamentary oversight though it is a vital state institution, the Committee on Public Enterprises (COPE) has revealed.

The failure on the part of successive governments to ensure proper oversight has revealed massive losses amounting to billions of rupees over the years, recent COPE investigations have found.  

Responding to The Island queries, authoritative sources said that the ICTA, established in terms of the Information and Communication Technology Act No. 27 of 2003, (ICT Act) and amended by Act No. 33 of 2008, had operated outside government scrutiny.

Their response to AG’s query on its operations had been callous with the Chief Executive Officer (CEO) asserting the institution did not have to answer such questions.

The ICTA was set up in 2003-2004 with funds made available by the World Bank, during Ranil Wickremesinghe’s tenure as the Premier received WB backing, in 2011. ICTA has since been funded by taxpayers’ money though the Treasury and Parliament have turned a blind to what was going on, according to sources.

Top ICTA management had been paid outside the public sector salary structure with the CEO entitled for Rs. 755,000 a month, Legal Advisor Rs. 620,000, Senior Project Manager Rs. 525,000, Chief of Projects Rs. 535,000 and eight Project Managers Rs. 245,000 each, sources said.

Parliamentary watchdog committee COPE under the leadership of SLPP National List MP Prof. Charitha Herath recently inquired into the ICTA operations during yahapalana administration. However, the ICTA, during its existence has operated irresponsibly resulting in massive losses, parliamentary sources said.

COPE headed by Prof. Herath includes Mahinda Amaraweera, Mahindananda Aluthgamage, Rohitha Abegunawardena, Susil Premajayantha, Jayantha Samaraweera, Dilum Amunugama, Indika Anuruddha Herath, (Dr.) Sarath Weerasekara, D.V. Chanaka, (Dr.) Nalaka Godahewa, Ajith Nivard Cabraal, Rauff Hakeem, Anura Dissanayaka, Patali Champika Ranawaka, Jagath Pushpakumara, Eran Wickramaratne, Ranjan Ramanayake, Nalin Bandara Jayamaha, S.M. Marikkar, Premanath C. Dolawatte and Shanakiyan Rajaputhrian Rasamanickam.

COPE inquiry has revealed sheer negligence on the part of successive governments, which allowed ICTA to pursue an agenda of its own, causing massive losses though recent media reportage focused on  the UNP-initiated Google Loon project that resulted in over Rs 1 bn loss in addition to a staggering Rs 6,427,941 spent on project promotions.

Parliamentary sources acknowledged that ICTA hadn’t been subjected to scrutiny since the change of government in Nov. 2019. Regardless of change of government, the ICTA had continued the way it had been operating under successive governments, sources said.

Sources said Sri Lanka needed ICTA to be in charge of digital platforms besides the Telecommunication Regulatory Commission (TRC). However, at a time the country was facing a severe financial crisis due to the , the public sector couldn’t be allowed to cause further losses.

The COPE is expected to summon 16 more state enterprises in January and February, 2021 for examination of their status.

Recent revelations by watchdog committees-COPE and COPA (Committee on Public Accounts) had sent shockwaves through Parliament, sources said, adding that the decision to issue statements on behalf of the committees by Communications Department helped efforts to set the record straight. Therefore, there couldn’t be any ambiguity as regards the findings, sources said, underscoring the right of the public to know what was happening.

Recent COPE investigation revealed how ICTA had, in Nov 2013, abandoned a project meant to pay several categories of pensioners, including armed forces in Western Province online after spending a staggering Rs 278.54 mn.

Another failed ICTA project-Lanka Government Network cost the taxpayer Rs 148.33 mn during previous UNP-SLFP administration.

One of the most shocking findings was the rejection of ICTA 2017 Corporate plan after having spent Rs 2,737,000 on it. To the dismay of ICTA, COPE has called for a progress report on ICTA corporate plans since 2003.



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President proposes; Speaker disposes

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Dr. Wickramaratne

AKD’s request to Harsha:

Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.

Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.

Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.

The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”

Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”

The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.

The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.

Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.

The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.

Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.

The Parliament has not so far called for applications to fill the forthcoming vacancies.

by Shamindra Ferdinando ✍️

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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP

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Pubudu

The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.

Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.

Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.

The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.

He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.

Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.

The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.

Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.

by Chaminda Silva ✍️

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CID summons SJB MP for criticising education reforms

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Prasad

SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.

He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.

Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.

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