Misappropriating and mismanaging public funds

Are there records of party revenues to publicly disclose?

Long-delayed convictions of past politicians and public servants for misappropriating tax Rupees have begun. Some have already received lengthy jail sentences. Others are in custody awaiting indictments and trials. The media say that the Government will soon release a list of conmen to be indicted. When the total national tax revenue was only Rs. 2 billion in 2024, misappropriating even 1% of it is not only criminal but defies a core principle of every religion in the nation. Likewise, mismanaging public resources is costly and those responsible must be penalised. 

Penalising for mismanagement is not easy, but the culture of waste must change for the country to develop. The President has emphasised the need for efficient allocation and utilisation of scarce resources, but the measures proposed are auctioning unused vehicles and office furniture and relocating Government institutions to State-owned buildings. Productivity or output improvement is not on the list of things to do.

Consider these approximate performance metrics from the transport sector. SLTB had 26,241 employees and operated 4,266 buses each day in 2022. This is 6.2 employees per bus. Sri Lanka Railways had scheduled 395 trains per day in 2021 with a workforce of 12,151. This is 30.7 employees per train. Indian railways had 10-15 employees per train. 

Suppose that 10% of the Sri Lanka Police strength of 95,000 is engaged in traffic law enforcement. Yet there were 22,967 incidents in 2024, which is 2.4 incidents per officer. The majority of crashes are due to driver arrogance and ineptitude rather than accidents. Therefore, officers hiding behind trees, overriding traffic signals in the cities, and helping children cross streets near schools are as wasteful as the railways.

The sentencing of two ex-ministers to 20 years in jail (American and British laws prescribe up to 10 years) sends a clear message that even the rich and powerful are not above the law. However, the fine of Rs. 600,000 amounts to 1% of the misappropriated amount. It is like a fine of Rs. 1,100 per day per person when the daily cost of incarcerating was Rs. 950 even in 2023. In America and Britain, the fine is up to 50% and 200% of the misappropriated amount respectively.

The President has said that the NPP’s tax reforms are apolitical. Does the President and the others in Parliament, now and before, understand taxes? How many of them have paid personal income tax annually up to 2024? How many have paid back the nation, either in kind or cash, for the free education and healthcare they received? The President and others may argue that they opted to be career politicians and never had sufficient income to be taxed. They may also argue that they have made personal sacrifices for the common good. 

However, are there records of how they made a living until they became part of this or a previous Government? Are the monies they have paid for the rent, utilities, food, and children’s schooling until now from inheritances, loans, or donations? If the party paid their expenses, the party must have had an income to financially support the life members with roots in the poor remote parts of the country. Are there records of party revenues to publicly disclose? If they have never paid income or any other taxes because all were paid by the party, then should they be concerned about misuse or under-use of public funds? Before the Government tells the people to stop evading taxes and seeking exceptions, they must disclose how they have financed themselves up to now and the contributions they have made individually to the economy and society.

(The writer holds a PhD, PEng 

and is a Professor of Civil Engineering (Retd).)