COPA exposes large-scale corruption in North Central Provincial road projects, school auditorium

• Reveals 53 roads rehabilitated using Rs. 1.17 b in additional funds, but 2013 University of Peradeniya report discloses poor construction quality
• Projects fragmented into 741 contracts under Rs. 5 m each, bypassing public tender processes and enabling limited bidding
• One contractor linked to powerful politician receives 629 contracts worth over Rs. 2.93 b, though only eligible for Rs. 300-600 m
• Contractors paid up to Rs.45 m/km for roads that should cost Rs. 11 m/km
• Officials cite political interference and intimidation
• Finance Commission flags problematic allocation of large funds to single province, allegedly influenced by then Economic Development Minister
• COPA recommends investigations via CIABOC and CID to recover misused funds, identification of officials, politicians involved
• Spotlights Rs. 542 m auditorium project for school with Rs. 100 m advance paid—but project abandoned
• Orders probe and report within three weeks on school project

The Committee on Public Accounts (COPA) last week uncovered what it described as one of the most shocking episodes of corruption in the country’s recent road development history, following revelations of financial irregularities and political interference in flood rehabilitation projects undertaken by the North Central Provincial Council. 

The Committee convened in Parliament, chaired by MP Aravinda Senarath, and disclosed that 53 roads, damaged during the 2011 floods, were rehabilitated based on an additional estimate of Rs. 1.17 billion. However, a 2013 investigation by a team of engineers from the University of Peradeniya found that construction standards had not been met. As a result, payments to contractors were suspended. 

The original estimate for these road projects stood at Rs. 3,593 million (over Rs. 3.59 billion). 

Officials told the COPA that, rather than adhering to standard public procurement protocols, the projects were deliberately fragmented into 741 smaller contracts, each valued below Rs. 5 million. This circumvented the requirement for competitive public tenders and enabled the contracts to be awarded through limited bidding, with approval from the then Director General of the Provincial Road Development Authority.

They noted that this fragmentation allowed seven contractors without a public tender process. One of these contractors had received 629 projects covering 42 roads worth Rs. 2,934 million. Officials stated that based on the contractor’s financial capacity and experience, contracts worth only Rs. 300-600 million should have been awarded. It was also disclosed that this contracting company was linked to a politician who held power in the North Central Province at the time.

The Committee was told that some contractors were paid as much as Rs. 45 million per kilometre for roads that should have cost only Rs. 11 million, a clear marker of inflated billing and misuse of public funds. Despite these large expenditures, officials pointed out that roads deteriorated rapidly, confirming the substandard quality of construction.

Officials also recounted a toxic environment of intimidation and political interference. They said the main official involved in this incident, who served as the Acting General Manager of the Provincial Road Development Authority at the time, is now deceased. It was further revealed that he had previously served at the Mahaweli Authority and had been dismissed due to allegations of treasure hunting. 

Additionally, they revealed that officials who opposed these corrupt activities faced various hardships, and the General Manager of the Provincial Road Development Authority appointed thereafter was sent on retirement in 2015 by the then Chief Minister of the Province due to rejecting payments to these contractors.

The Finance Commission, which also participated in the session, noted that the very allocation of such a large sum to a single Provincial Council was problematic. It was discussed that this situation arose due to the influence of the Economic Development Minister at that time.

The COPA Chair stated that it was deeply regrettable that the tax money of hardworking farmers in the North Central Province had been defrauded in this manner, and described this incident as one of the most corrupt events in the country’s road development history. 

Accordingly, the Committee recommended identifying the officials involved and taking necessary steps to recover the misappropriated funds. It was also recommended to lodge complaints with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and the Criminal Investigation Department (CID), and to submit a report regarding the political authority involved in this incident.

Attention was also drawn to an agreement made in 2017 with a construction company to build an auditorium for Palugasdamana Maha Vidyalaya for Rs. 542,019,300 (over Rs. 542 million). It was revealed that although an advance of Rs. 100 million had been paid to the contractor, the construction had been abandoned at the initial stage. 

The Committee pointed out that allocating such a large amount of funds without any feasibility study to a school with less than 500 students was unjustifiable, and that the decision had been made solely based on the then Chief Minister of the North Central Province. Furthermore, it was discussed that the contractor had close ties with the political authority.

The Committee recommended that an investigation be carried out into the officials involved in this now-defunct project and that necessary actions be taken to recover the funds if any misconduct is found. The officials were instructed to submit a report regarding this matter within three weeks.

MPs Dr. M.L.A.M. Hizbullah, Chamara Sampath Dassanayake, Sagarika Athauda, Oshani Umanga, Attorney-at-Law Thushari Jayasinghe, T.K. Jayasundara, Susantha Kumara Nawarathna, Sunil Rathnasiri, and Dinindu Saman Hennayake participated in the meeting.