Tuesday, 3 December 2013 00:40
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COPE Chairman, Senior Minister and veteran Leftist politician D.E.W. Gunesekera said massive losses were threatening the collapse of key State institutions, including the country’s electricity supplier and national carrier that could have a ripple effect on Sri Lanka’s banking system.
Hailing what he called a “historic” report that had scrutinised the financial performance of 244 public enterprises in 2011, Gunasekera emphasised in Parliament that “the Executive should heed the findings and recommendations of the COPE report.” Whether the appeal will receive a reaction is anyone’s guess but it is an echo of requests that have been reverberating for years.
The Committee on Public Enterprises, better known as COPE, is an entity that has much unrealised potential. Its limited function is a testament to the blatant political apathy to address massive losses of State-run enterprises with even its members refusing to show up for meetings to the extent that its Chairman has asked the Speaker to make new appointments.
Releasing the damning report earlier this year COPE nonetheless remains toothless to take legal action against billions in losses due to corruption, wastage and mismanagement.
According to data published in the Annual Report of the Ministry of Finance and Planning, the operating losses of the CPC in just 2011 and 2012 have been close to Rs. 200 billion. SriLankan, another culprit, not only has losses of Rs. 19.6 billion in 2012 alone it is also about to rack up Rs. 315 billion in aircraft purchase expenses that will see the red in its ledger skyrocket. Mihin Lanka, since its inception five years ago by President Rajapaksa, has sucked up more than Rs. 8.5 billion in taxpayers’ money.
According to data published in the Central Bank Annual Report 2012, six major public corporations have made operational losses amounting to Rs. 185 billion in 2012. The Ceylon Electricity Board (CEB) alone has not only lost billions of rupees but it is also the poster child on how an entire country can be weakened by wrong policies, corruption and utter disregard for accountability. Even as former Chairmen’s names pop up in secret accounts in tax havens, the haemorrhage is allowed to continue.
According to Minister Gunasekera, having followed the recommendations given in the previous COPE report, nine public enterprises have managed to turn around and have started making profits and 38 institutions have increased their profits against the 12 institutions which started making losses. But clearly this is a drop in the debt ocean.
In his characteristically forthright manner, Gunasekera pointed out that political appointments to head State organisations were one of the main reasons for shocking ineptitude. A bloated public service that is crammed with political lackeys is another. It is not rocket science then to understand that the best way to bring these companies back to profit is to trim the fat and to hire professionals.
Professionals with decent pay are also needed to audit and maintain accounts. In a country where the Auditor General is probably the lowest paid in the world, the need for financial accountability obviously gets short shrift.
The fact that COPE itself has little legal power to implement its recommendations proves the point. But this cannot be allowed to continue. Yet when COPE members themselves do not care enough to even attend the meetings and carry out their duties then clearly the situation has hit rock bottom. Sadly, given the Government’s complete disinterest, it is likely to remain so.
