The Committee on Public Finance (COPF), chaired by Dr. Harsha de Silva, has released a critical report revealing major discrepancies in the procurement process and agreement with the Consortium comprising GBS Technology Services, IVS Global-FZCO, and VF Worldwide Holdings Ltd. The Committee’s findings highlight significant concerns and recommend urgent corrective actions.

Key Findings:

• Uncompetitive Procurement Process:
  • The Consortium was appointed without a competitive bidding process, preventing the Department of Immigration and Emigration (DOIE) from securing the best value for money.
  • Proposals were submitted before finalising the System Specification Requirement (SSR), raising concerns on procedural integrity.
• Critical Issues Identified:
  • Unclear Fee Structure: Lack of transparency in fee components, including discrepancies in service fees and convenience fees.
  • Data Breach and Termination: A significant data breach was reported by a major travel vlogger in May 2024 potentially triggering a termination clause. 
  • Conflicting Exclusivity: The exclusivity granted to the Consortium contradicts the presence of existing service providers and the recommendation by the evaluation committee. 
  • Uninvested Funds: The USD 200 million investment promised to Cabinet remains uninvested and not mentioned anywhere in the agreement. 
  • Terminated Service Provider: Mobitel, the previous ETA service provider since 2012, submitted multiple proposals for system improvements and a comprehensive proposal for new services was overlooked.
• Recommendations:

• Comprehensive Forensic Audit: The COPF recommends that the Auditor General undertake a comprehensive forensic audit of the entire procurement process. This audit should be completed at the earliest opportunity to serve as the foundation for necessary actions, which could include abrogating or amending the Consortium Outsourcing Agreement.
• Data Protection Measures: The COPF urges the Ministry of Public Security (MOPS), DOIE, and the Sri Lankan Data Protection Authority to review the KPMG report and take immediate and decisive actions to ensure the complete security and protection of all data handled through the ETA application process.

Dr. Harsha de Silva, Chairman of COPF, stated, “The absence of a competitive bidding process in the procurement of online visa services has likely resulted in an agreement that does not provide the best value for money. Our findings call for immediate action by the Auditor General to address these critical issues and ensure transparency and accountability, which could even mean abrogation of this agreement.”