The COPE chaired by Senior Minister D.E.W. Gunasekara has identified 40 institutions as those which continue to incur losses.
Among the loss-incurring institutions are the Sri Lanka Tea Board, Atomic Energy Authority, Ceylon Electricity Board, Industrial Development Board, Sri Lanka Mahaweli Authority, Ceylon Petroleum Corporation and Sri Lanka Cashew Corporation while the National Gem and Jewellery Authority, State Mortgage and Investment Bank, Sri Lanka Telecom and Sri Lanka Rupavahini Corporation have been categorized as the four institutions with decreasing revenue. The rest of the institutions have been identified as those which are financially stable or institutions operating at break-even level.
Mr. Gunasekera told a news conference that this was the first time that COPE was able to examine as many as 229 state institutions in 16 months. He said he received the co-operation of all COPE members whether from the government or the opposition despite political differences.
Mr. Gunasekera cited undercapitalization, mismanagement, administrative lapses, lack of professionally qualified people and the absence of proper corporate plans as some of the reasons that had led to the poor financial performances at these institutions.
“We do not have a sufficient number of professional accountants to run the affairs of these state institutions. We are concerned about the criteria adopted in the appointment of chairmen and directors. Yet, we need professional accountants and qualified financial managers,” he said and added that COPE decided to continue interacting with ministry secretaries who were chief accounting officers.
“Most of the time, they do not perform their duty in this respect. They carry out their ministers’ orders and instructions. They are always held responsible for financial activities. Hereafter, we will have a continuous dialogue with them as part of our plan to enforce discipline in the discharge of public finances,” he said. Mr. Gunasekera stressed the need to empower the Auditor General so that he could discharge his duties in a more transparent, accountable and responsible manner.
“We noted that the Auditor General’s queries are ignored. If they implement the AG’S recommendations the financial performance will improve,” he said and added that where the appointment of chairmen and directors were concerned, COPE recommended that the authorities concerned take into account their previous performances prior to appointing them.
DailyMirror.lk: