The Committee on Public Enterprises (COPE) has raised serious concerns over financial mismanagement at the National Gem and Jewellery Authority (NGJA), questioning the decision to spend Rs. 2 billion on renting a separate building instead of renovating its own facility for just Rs. 21 million, as estimated by the Central Engineering Consultancy Bureau (CECB).

It was revealed that the Authority vacated its original building in 2021 due to structural issues caused by an adjacent shopping complex. Despite a Rs. 3 million monthly compensation offer from the responsible company, the Authority refused the offer and relocated, resulting in excessive rental expenses. COPE criticized this move as an irresponsible misuse of public funds, adding to the government’s financial burden.

COPE also scrutinized the unapproved gem mining in Heraniaka, questioning the lack of formal approval processes and contract extensions granted to private companies without due diligence. The committee expressed dissatisfaction with officials’ inability to provide clear answers, prompting recommendations for an internal investigation and referral to the Commission for Investigation of Bribery or Corruption.

Furthermore, COPE slammed the release of a Rs. 2.5 billion gem consignment seized by the court for under-valuation, with only a Rs. 10,000 fine imposed instead of the maximum Rs. 333,000 fine. Officials defended the decision, stating it was a breach of conditions rather than a criminal offense, but COPE dismissed their justification, accusing them of misleading the committee.

The committee also noted that the Authority lacks a dedicated imports division, despite its mandate to regulate both gem imports and exports. This oversight has led to inconsistencies in taxation, with only 1,664.06 kg of gems re-exported from a total 46,815.94 kg imported between 2022 and 2024, raising concerns over tax calculation discrepancies.

As a result, COPE directed the Gem and Jewellery Authority to develop a comprehensive regulatory framework to ensure transparency in exports and proper revenue collection while promoting the industry’s growth. The committee also demanded a detailed report on gem imports, exports, and tax evaluations.

(Excerpts : dailynews.lk)