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Audit reveals Rs. 200m loss due to mismanagement in state entities

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Whether purchasing gunny sacks or constructing buildings, public entities are required to follow strict procedures to ensure taxpayer money is not wasted. But recklessness and mismanagement have resulted in a loss of almost Rs. 200 million, according to a recently-released audit report for 2021.

The State Pharmaceutical Manufacturing Company purchased unusable medical raw material, the University of Peradeniya made mathematical errors in the contract for elevator installation, and Litro Gas Lanka cancelled orders without obtaining a refund, are just a few of the instances contributing to the loss.

The audit report covers 160 entities’ procurements and projects in 2021 with a few long-term ones extending as far back as 2017.

The Rs. 200m does not, however, include losses due to violations in the bidding process itself, which was not exactly calculated in the audit, but likely amounts to hundreds of millions of rupees. In one case, a vaccination was purchased at 156 times the estimated price because only one company submitted a bid and the State Pharmaceutical Corporation failed to call for another round. In another instance, the Gem and Jewellery Authority overpaid Rs. 36 million for renting a building from the highest rather than lowest bidder.

Many entities displayed a blatant disregard for accountability by violating due process.

Bid requirements were changed mid-way, fewer people were appointed to technical evaluation committees than required, advance payments were made prematurely, product tests were not conducted, and indeed, in several instances a bidding process was simply not followed at all. Lakdiva Engineering Company (Pvt) Ltd, for example, did not call national bids for the procurement of spare parts worth Rs 571m for buses and garages.

Furthermore, by law, public corporations are required to prepare action plans, corporate plans, progress reports and procurement plans to ensure progress and prevent corruption. Nevertheless, the audit revealed that 21 institutions had not created procurement plans, while 19 had not formulated action plans, and a further 12 did not even have a budget for the audited year.

sundaytimes.lk
(Except for the headline, this story, originally published by sundaytimes.lk has not been edited by SLM staff) 

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Korean SME Association offers support to SL

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The Korean Small and Medium Enterprise (SME) Association has expressed its commitment to support Sri Lanka in advancing the agriculture sector and enhancing related employment opportunities.

Additionally, the association has agreed to provide technical assistance and training resources essential for the development of the fishing industry.

These topics were highlighted during a meeting held today (13) at the Presidential Secretariat between a delegation from the Korean SME Association and officials from the President’s Office.

The discussions also focused on training Sri Lankan workers locally for Korea’s fishing industry and creating employment opportunities for them.

The delegation was led by Kim Chung Ryong, President  of the Korean SME Association.

(President’s Media Division)

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US embassy lifts travel restrictions issued for Arugam Bay

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The US Embassy Colombo has lifted travel restrictions issued on October 23, 2024, for Arugam Bay. 

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Pilot project to issue e-BMD certificates to Lankans overseas

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The government has announced a new initiative to issue copies of birth, marriage, and death certificates to Sri Lankans living abroad through Sri Lankan embassies, aimed at providing greater convenience to the expatriate community.

The program will be launched as a pilot project across seven selected foreign missions, including the embassies in Kuwait, Japan, and Qatar, and the consulates in Melbourne (Australia), Toronto (Canada), Milan (Italy), and Dubai (UAE).

In Sri Lanka, efforts are underway to enhance the e-BMD (electronic Birth, Marriage, and Death) database system, which is jointly managed by the Registrar General’s Department and the Ministry of Foreign Affairs. This will allow birth, marriage, and death certificates to be issued through foreign embassies, following a model already in place for obtaining certificates at Divisional Secretariat offices across Sri Lanka.

In the initial phase, only the approximately 45 million birth, marriage, and death certificates that have already been scanned and stored in the e-BMD system will be issued.

These will include records for births, marriages, and deaths that have been registered since January 1, 1960. While the majority of these records will be available, there may be occasional delays in updating certificates that have been revised after their initial entry into the database.

(President’s Media Division)

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