End stopgap measures

THE Committee on Public Enterprise (COPE) will report to Parliament secretaries of ministries that have financial mismanagement allegations against them. The idea, it seems, is for the ministers to take action to clean up their relevant institutions. This seems like giving the thief the chance to decide his own punishment.

Harsh as that statement might seem, the very fact that these excesses went unnoticed by those at the top means they were lax in their duties. Moreover, it reinforced the environment of impunity in which ministers operate.

Take for example the recent charges against Minister Mervyn Silva that now seem to have faded into nothing. Even though it was reported that a Police team was conducting investigations, the whole matter seems to have died out.

What was interesting about the report was that it was juxtaposed with the story of a woman who was given the death sentence for peddling 40 grams of heroin. This is not to say that the woman should be excused, but to underscore the ridiculously lopsided use of the law in Sri Lanka. Suspected drug lords go free while smaller offenders are tossed into prison for the rest of their lives.

In the preface of the document, which was released to the media, COPE outlines several recommendations, including updating corporate plans, having well-planned procurement documents and efficient audit and management committees as well as tabling of annual reports. Unsatisfactory recovery of debts and funds from retired officers, breach of agreements and wastage of public money due to legal issues were all highlighted in the report.

Loans between Government institutions include Rs. 10 million owed by Mihin Lanka to Rupavahini, Rs. 50 million owed by the Sri Lanka Ports Authority to the Ceylon Shipping Corporation, non-payment of interest by Mihin Lanka to Airport and Aviation services on a Rs. 500 million loan and Rubber Manufacturing and Export Corporation owing Rs. 115 million to People’s Bank and Rs. 1.4 billion to the Treasury, the report states.

Universities had also lost millions. Peradeniya University (Rs. 105 million), Hector Kobbekaduwa Research Institute (Rs. 11 million), Open University (Rs. 40 million), Moratuwa University (Rs. 17 million) and Sri Jayawardenapura (Rs. 69 million) were the noteworthy ones. Moreover, the Open University was guilty of spending millions to construct buildings on land of which it did not have clear ownership. It is indeed disturbing that institutions that are tasked with instilling education and ethics in Sri Lanka’s future generation cannot seem to get their own act together.

In the State Mortgage and Investment Bank, a number of loans had been defaulted after paying only one or two instalments. Rupavahini had taken no effort to recover Rs. 42 million for use of airtime from various parties. Loss-making institutions for 2010 were numbered at 48, including Sri Lanka Tea Board, State Pharmaceutical Corporation, National Child Protection Authority, CPC, CEB, Mahaweli Authority, Mihin Lanka, Sri Lanka Ports Authority, Samurdhi Authority, Sri Lanka Transport Board, Disaster Management Centre, Road Development Authority, Urban Development Authority and even the National Enterprise Development Authority.

The list goes on and on. If the Government is serious about stamping out corruption, then it needs to empower COPE to take legal action against all offenders, starting with those at the top and allowing the CID to conduct transparent investigations into transactions that go beyond the COPE mandate but still involve public money.