SLBFE faces CoPE scrutiny over Rs. 1 b in unauthorised spending, financial mismanagement

 CoPE Chairman MP Dr. Nishantha Samaraweera

• CoPE uncovers SLBFE spending over Rs. 1.3 b on unapproved programs in 2024, bypassing Cabinet approval
• ‘Glocal Fair’ alone costs Rs. 1.259 b, far exceeding usual Rs. 2 m outreach allocation
• Trade stall procurement costs jump from Rs. 170,000 to Rs. 500,000 without clear explanation
• CoPE Chief accuses SLBFE of wasting funds on non-strategic, unplanned activities
• ‘Rataviruwo’ housing loan scheme fails; Rs. 100 m remains unpaid, with no beneficiary data
• Urges better use of SLBFE’s Rs. 18 b in fixed deposits
• Kuwait Compensation Fund worth Rs. 5.1 b remains underutilised; plans made for training and pensions
• Fraud surfaces in migrant worker registration, with agencies falsely claiming fee refunds
• Sub-committee to probe financial fraud by employment agencies

The Sri Lanka Bureau of Foreign Employment (SLBFE) came under intense scrutiny after the Committee on Public Enterprises (CoPE) revealed it had spent over Rs. 1.3 billion on programs not included in its 2024 annual action plan, raising serious questions about governance, accountability, and financial discipline within the institution.

This was revealed at the CoPE meeting held recently, chaired by MP Dr. Nishantha Samaraweera. At the meeting, it was disclosed that the SLBFE has spent over Rs. 1.259 billion on a program titled ‘Glocal Fair’ and Rs. 63 million on another initiative named ‘Vigamanika Harasara.’ Both programs were implemented without prior Cabinet approval or proper planning. 

The ‘Glocal Fair,’ designed to decentralise access to services of the Labour and Foreign Employment Ministry across the country, was launched before securing Cabinet approval. 

The Committee noted that only Rs. 2 million is usually allocated for such outreach efforts, but the staggering scale of expenditure suggested financial impropriety.  The procurement of trade stalls was also questioned, with prices escalating from Rs. 170,000 to Rs. 500,000 without clear justification.

CoPE Chair Dr. Samaraweera criticised the SLBFE for wasting large sums of public funds on unplanned and non-strategic programs, pointing out that funds which could have been channelled into productive initiatives had instead been “misused” without achieving measurable outcomes.

In another revelation, the ‘Rataviruwo’ housing loan scheme, a joint project with the Samurdhi Authority initiated in 2013, has failed to deliver results.

Despite a signed Memorandum of Understanding (MoU), Rs. 100 million due to the SLBFE remains unpaid. 

SLBFE officials admitted they lacked data on the number of beneficiaries and had not conducted follow-ups, prompting the Committee to demand a full report from the program’s inception to date. 

CoPE member MPs participating in the Committee expressed concern over the SLBFE acting beyond its regulatory mandate. The Committee stressed the urgent need to devise a plan to utilise the Bureau’s current fixed deposits, amounting to Rs. 18 billion, more effectively.

Furthermore, the Committee inquired about actions taken concerning the inactive Kuwait Compensation Fund, which had a balance of Rs. 5.1 billion as of 31 December 2023. 

Officials informed the Committee that plans have been made to use this fund to provide necessary training for domestic workers going abroad and to establish a pension scheme for migrant workers.

The Committee also discussed financial fraud committed by employment agencies that have charged unjustified fees from migrant workers. 

It was clarified during the Committee that every migrant worker travelling independently must be registered with the SLBFE and pay a registration fee to the Bureau.  Similarly, even when employment agencies facilitate foreign employment, workers must pay the registration fee to the Bureau, of which 70% is refunded to the respective agencies.

However, due to fraudulent activities where independently migrating workers are falsely recorded as agency-facilitated workers, the Committee Chairman decided to appoint a sub-committee to investigate the related financial fraud.

MPs Anuradha Jayaratne, Mujibur Rahman, M.K.M. Aslam, Nilanthi Kottahachchi, Samanmali Gunasingha, Mayilvaganam Jegatheeswaran, Dr. S. Sri Bavanandaraja, Sujeewa Dissanayake, Jagath Manuwarna, Ruwan Mapalagama, Sunil Rajapaksha, Darmapriya Wijesinghe, Asitha Niroshana Egoda Vithana, Dr. Pathmanathan Sathiyalingam, Thilina Samarakoon, Chandima Hettiarachchi, Dinesh Hemantha, and Lakmali Hemachandra were present at the Committee meeting held.