Public Accounts Committee’s 4th report exposes state sector ills

By Ashwin Hemmathagama – Our Lobby Correspondent

The Public Accounts Committee (PAC) on Friday moved its fourth report containing information secured through investigations conducted after 36 institutions were summoned before it from 24 January-24 May 2017 within the first Session of the 8th Parliament with 16 special observations and 256 common observations. 

According to the report, when attention was paid to the vision and mission of many public institutions, the PAC has observed that there were occasions when the performance of the institutions did not comply with their vision and mission. The PAC has emphasised the fact that institutions should function in accordance with their vision and mission in order that a full service could be performed for the benefit of the public and if not the vision and mission of the institution should be changed having considered the necessary changes required for the time being.

The PAC has also observed that there was no common program for the selection of officials employed at provincial councils for foreign tours and for activities related to it. Accordingly, the Committee emphasised the fact that there should be a specific common methodology for it. 

“It was revealed when the district secretariats were summoned before the Committee on Public Accounts that there was no specific common methodology for conducting the meetings of the aforesaid committees and the Ministry of Home Affairs has submitted a common program which should be followed in conducting the aforesaid meetings as per the directions given by the Committee to the effect that it should be streamlined. It was revealed that action had been taken to educate all district secretaries through an internal audit circular which had been formulated in accordance with the instructions incorporated in Circular No. DMA 2009 (1) dated 9 June 2009, issued by the Department of Management Audit and the committee praised the Ministry in regard,” stated the report based on the meetings conducted by the audit and management committees within district secretariats.

According to the report, the Management Audit Department has taken steps to formulate a more effective program to strengthen internal auditing at the divisional secretariat level in accordance with the directions given by the Committee on Public Accounts. 

Accordingly, a request has been submitted to assign one graduate who has accounting and auditing knowledge to each Divisional Secretariat to conduct audit activities within them. Similarly, it has been pointed out that Development Officers who have gained the aforesaid qualifications can be attached to ministries, various departments and district secretariats to meet the shortage of staff in the internal audit units within them. The Committee praised this course of action that has been taken to further strengthen the internal audit process with a view to utilise public finance in a more efficient and effective manner.

Moving the motion in Parliament, Chairman of the Public Accounts Committee, Finance and Mass Media Deputy Minister Lasantha Alagiyawanna, said: “Based on our experience in the Public Accounts Committee, there is no use in conducting investigations after an issue. We recommend the institutions avoid issues rather getting investigated later. We were able to get most state establishments to recruit the necessary staff to maintain proper accounts. The Auditor General checks the matters pertaining to 831 state institutions at the end of each year and presents them to Parliament. The Public Accounts Committee was able to make use of the Auditor General’s reports. We should debate the reports of the Public Accounts Committee.”